The global competition surrounding electric cars and battery technology is having significant economic implications for automakers, small battery startups, and consumers. As the era of combustion-engine vehicles fades away, car buyers will have a wide variety of electric cars to choose from, each using different types of batteries. The composition of batteries, once a technical matter for engineers, has now become a crucial topic of discussion in the boardrooms of major automakers like General Motors, Toyota, Ford Motor, and Volkswagen, as well as in the White House. With government support, these companies are collaborating with startups to innovate battery technology in order to stay competitive in the electric car revolution. Mastering battery technology could be a key factor in determining which companies succeed in the market, as well as which ones are surpassed by competitors like Tesla. The role of batteries in new cars will impact pricing and could become a defining feature of vehicles. Just as consumers once focused on megapixels in cameras or processing speeds in computer chips, the features of batteries will now be the key factor in determining the success of cars and trucks. According to Ford Motor's chief product platform and operations officer, Hau Thai-Tang, the battery in electric vehicles will be the new basis for brand differentiation. This shift towards prioritizing battery technology is crucial not only for the automotive industry but also for combatting climate change by reducing reliance on oil, coal, and natural gas in the transportation and power sectors. As demand for electric cars rises, automakers are rapidly learning about battery chemistry in order to produce more affordable and efficient batteries. In today's market, batteries can account for 25-33% of the total cost of electric cars, with the majority being produced by a small number of Asian companies. Even Tesla, a leading electric car manufacturer, depends on Asian suppliers and is working towards increasing its own battery manufacturing capabilities. President Joe Biden recently urged companies to shift more of the battery supply chain to the United States, a move that has gained strategic significance following Russia's invasion of Ukraine. Volkswagen had to temporarily close its main electric vehicle factory in Germany due to disruptions in the supply of parts from western Ukraine. Large automakers like Stellantis are investing heavily in startups like Factorial Energy, a company with less than 100 employees near Boston, that is developing a new battery technology. Factorial's executives are focused on creating a battery that charges faster, holds more energy, and is less likely to overheat than current batteries. Co-founder Siyu Huang, who started working on battery technology at Cornell University, is committed to delivering the safest battery and improving people's lives. High-ranking officials in the Biden administration have expressed a desire to assist in improving battery technologies in the United States, acknowledging the country's failure to capitalize on domestically created innovations in this field. This has led to the growth of a significant battery industry in China. The Energy Department is exploring the possibility of providing financial support to companies involved in battery manufacturing or the supply of necessary components and minerals. Currently, there are over 10 applications pending with the agency requesting a total of more than $15 million for projects related to batteries. Transportation Secretary Pete Buttigieg recently highlighted the negative impact of a lack of innovation on his hometown of South Bend, Indiana, once home to Studebaker, which closed down in the 1960s. He stated that innovation is crucial for the auto industry's past, present, and future, especially with the opportunity for America to lead the electric vehicle revolution. One significant change on the horizon is the shift towards using lithium iron phosphate (LFP) batteries in electric vehicles, which are cheaper and more durable compared to traditional nickel, manganese, and cobalt batteries. Although LFP batteries may not store as much energy per pound, they are gaining popularity due to their cost-effectiveness and longevity. Tesla is planning to use LFP batteries in their shorter-range, lower-priced electric vehicles, while Ford intends to utilize them in certain trucks under their Ion Boost Pro brand for fleet owners. Ford executive Thai-Tang mentioned that these trucks would be ideal for delivery, plumbing, electrical work, and landscaping within a specific geographic area. Ford is partnering with SK Innovation of Korea to produce these batteries but hopes to move much of the manufacturing to the United States to reduce geopolitical and logistical costs. However, it is important to note that the LFP battery is not a comprehensive solution. Vehicles produced by Tesla that utilize these batteries can travel approximately 270 miles on a single charge, while comparable models using nickel and cobalt batteries can reach about 358 miles. Additionally, LFP batteries may experience decreased performance in cold temperatures and require longer charging times. Ford's upcoming electric F-150 pickup truck, with 200,000 reservations already made, will utilize batteries with a higher nickel content. Tesla has announced the production of 1 million cells for their new "4680" battery, which is being used in their Model Y crossovers and is expected to provide a 16 percent increase in range due to its unique honeycomb design, according to CEO Elon Musk. In 2020, he stated that something is difficult until it is uncovered, and then it becomes easy. General Motors (GM) asserts that their Ultium battery cell requires 70% less cobalt compared to the cells found in the Chevrolet Bolt electric hatchback. The company has introduced aluminum into their battery design. The GMC Hummer pickup, recently launched by GM, is the first vehicle to incorporate this new battery technology. GM, in collaboration with South Korea's LG Chem, is constructing a $2.3 billion battery plant in Lordstown, Ohio. It is one of a minimum of 13 significant battery plants being built in the United States. Automakers are increasingly focusing on batteries as a key aspect of their brand, with GM promoting Ultium batteries in commercials. This highlights the need for these batteries to be dependable and safe. GM recently had to recall the Bolt due to a battery issue that could cause fires. Many car manufacturers are looking to decrease their use of cobalt, much of which is sourced from the Congo through Chinese-funded companies or freelance miners, some of whom may utilize child labor. Markus Schäfer, a senior Mercedes executive in charge of research and development, expressed concern over potential human rights violations, including child labor and difficult working conditions for artisan miners. The auto industry is particularly worried about the supply of nickel from Russia. A group of 25 government scientists at Oak Ridge National Lab is working on pushing innovations in electric car batteries. They are testing conventional batteries alongside a cobalt-free alternative to measure their performance over weeks of charging and discharging. Ilias Belharouak, in charge of the Oak Ridge Battery Manufacturing Center, aims to reduce battery costs by up to 50%, extend their range to over 300 miles, and decrease charge times to 15 minutes or less. The Energy Department has provided $200 million to seven national labs to support this effort. In the coming month, the department will hold a virtual event where battery designers will present their ideas to scientists, government officials, and industry leaders. US startups like Factorial Energy, Solid Power, and QuantumScape are working towards transforming battery construction methods, not just altering the materials used. Today's batteries use a liquid solution as an electrolyte to facilitate the flow of electricity. Solid-state batteries, on the other hand, do not require a liquid electrolyte. This makes them lighter, allows them to store more energy, and enables them to charge faster. Additionally, solid-state batteries are less likely to ignite, reducing the need for cooling equipment. Many car manufacturers are investing in solid-state technology, with Volkswagen backing QuantumScape, a company in San Jose, California. BMW and Ford are investing in Solid Power, located in Louisville, Colorado, while GM has put money into SolidEnergy Systems, originating from the Massachusetts Institute of Technology and now based in Singapore. The timeline for the widespread availability of solid-state batteries is uncertain, with Stellantis aiming to introduce mass-market vehicles using them by 2026, but other industry executives predicting it may not be widely accessible until around 2030. Whichever automaker is able to bring solid-state batteries to market first stands to gain a significant competitive edge. Huang, co-founder of Factorial, mentioned that she and her business partner, Alex Yu, often work through the night to meet technical benchmarks. She is driven by memories of the pollution she experienced growing up near Shanghai and the company's goal of working towards a fossil-free future. Factorial, which has investments from Mercedes-Benz and Hyundai, has plans to expand globally despite currently operating on a second floor. Employees in laboratories test prototype cells with serious focus and determination. Andrew Miller, the chief operating officer at Benchmark Minerals Intelligence, stated that despite the frenzied activity in the auto industry, there may be a struggle to meet the demand for new batteries due to difficulties in mining and processing all the necessary raw materials, especially lithium. Miller expressed uncertainty about the source of raw materials for the models and plans announced by companies in the next three years.