The demand for batteries, a crucial component in electric cars, is currently exceeding supply, leading to a global competition among investors, companies, and startups to develop the necessary technology and infrastructure. While batteries were once considered unremarkable, they are now seen as an exciting and innovative aspect of the automotive industry. Unlike car manufacturing, which has remained relatively unchanged and unprofitable for decades, the battery industry is poised for significant advancements. The rapid evolution of battery technology is comparable to the early days of personal computers, mobile phones, and automobiles, presenting an opportunity for groundbreaking innovation and the emergence of new industry leaders. Wood Mackenzie predicts that electric vehicles will account for 18 percent of new car sales by 2030. This would result in a demand for batteries that is eight times greater than current factory production capabilities, according to a conservative estimate. Some analysts predict even faster growth in electric vehicle sales. Car manufacturers are competing to discover the most efficient chemical composition for batteries that provide high energy output at a low cost and in a compact size. GM's recent announcement that it plans to transition to all electric vehicles by 2035 was seen as a significant milestone by policymakers and environmentalists. However, many individuals in the battery industry viewed the company's announcement as obvious. Venkat Viswanathan, an associate professor at Carnegie Mellon University who specializes in battery technology, stated that this announcement, along with other recent announcements, clearly indicates the arrival of electric vehicles. Companies such as Tesla, Panasonic, LG Chem, BYD China, and SK Innovation dominate battery manufacturing, with most of them located in China, Japan, or South Korea. Despite this, there are numerous new entrants in the industry, and investors are eagerly investing in startups they believe are on the brink of major advancements due to the potential for significant profits. Andy Palmer, the former CEO of Aston Martin and current nonexecutive vice chairman of InoBat Auto, believes the battery industry is still in its early stages. QuantumScape, a startup supported by Volkswagen and Bill Gates, is developing technology to improve battery efficiency, but has not yet generated significant sales. Despite this, the stock market values the company higher than Renault. Both China and the European Union are investing in battery technology. China views batteries as essential for its goal of dominating the electric vehicle sector. To achieve this, the Chinese government supported Contemporary Amperex Technology, a partially state-owned company, in becoming one of the largest battery suppliers globally in a short period. In response to this, the European Union is providing subsidies for battery production to prevent reliance on Asian suppliers and protect jobs in the auto industry. The European Commission recently announced a 2.9 billion euro fund to support battery manufacturing and research, in addition to over 60 billion euros already pledged by European governments and automakers for electric vehicles and batteries, as reported by Accenture. Government funds will be allocated to Tesla as a form of appreciation for their decision to construct a factory near Berlin. The United States is also expected to support the industry, aligning with President Joe Biden's focus on climate change and electric vehicles. Biden, who expressed his excitement about potentially driving an electric version of his 1967 Chevrolet Corvette in a campaign ad, emphasized the importance of federal incentives for electric car and battery production. Analysts believe that these incentives, along with technological advancements by government-funded researchers and companies like QuantumScape and Tesla, will be crucial in establishing a successful industry in the United States. Margaret Mann, a group manager at the National Renewable Energy Laboratory, stated that China strongly promotes manufacturing and new development. She expressed optimism about the United States' potential to catch up in battery production but acknowledged that challenges remain. Entrepreneurs in the field believe that US companies have the opportunity to surpass Asian producers in the industry, despite current batteries not being competitive. Jagdeep Singh, CEO of QuantumScape, emphasized the importance of improving batteries for a renewable energy economy. Overall, the investment in battery technology is seen as positive news. It utilizes capitalism to address a global issue, but the restructuring of the auto industry will have consequences for companies that manufacture parts for traditional vehicles. Battery technology development is a gradual process and can take years, with unexpected challenges along the way. Many believe that China will benefit from the increasing demand for batteries due to its dominance in refining metals for batteries and production of battery cells. According to projections by Roland Berger, a German management consulting firm, China's dominance in battery production is expected to only slightly decrease over the next decade despite plans to expand production in Europe and the United States. Tom Einar Jensen, the CEO of Freyr, which is constructing a battery factory in northern Norway, emphasized the significant geopolitical implications of battery production. He stated that the European auto industry is aiming to reduce reliance on imports from Asia and China specifically. Freyr is seeking to raise $850 million through a proposed merger with Alussa Energy Acquisition Corp., a shell company that went public before acquiring any assets. The merger, announced in January, would result in Freyr being listed on the New York Stock Exchange. The company intends to manufacture batteries utilizing technology created by 24M Technologies in Cambridge, Massachusetts. The primary focus for the industry is on reducing the cost of batteries. According to Srinivasan, electric car batteries for a midsize vehicle currently cost around $15,000, which is double the price necessary for mass acceptance of electric cars. These cost reductions can be achieved through various small enhancements, such as producing batteries near car factories to eliminate shipping expenses, and minimizing waste, as stated by Roland Berger. Approximately 10 percent of the materials used in battery production are wasted due to inefficient manufacturing processes. However, in a recent study, Roland Berger cautioned that the increasing demand may result in higher prices for raw materials such as lithium, cobalt, and nickel, potentially offsetting some of the efficiency improvements. The automotive industry is in competition for batteries with electric utilities and other energy firms that require them for storing intermittent wind and solar power, further increasing demand. Jason Burwen, the interim CEO of the United States Energy Storage Association, has suggested that there might be a shortage of supply this year. A new wave of companies has emerged to replace expensive minerals used in batteries with more affordable and readily available materials. OneD Material, located in San Jose, California, produces a substance resembling used coffee grounds for use in anodes, the electrode that allows power to exit batteries during vehicle operation. The substance is created using silicon, which is readily available and cost-effective, in order to lessen the reliance on graphite, which is rarer and more costly. In the future, the ultimate goal for the industry is solid state batteries, which would replace the liquid lithium solution in current batteries with solid layers of a lithium compound. Solid state batteries are expected to be more stable, less likely to overheat, and allow for quicker charging times. Additionally, they would be lighter. Toyota Motor Co. and other companies have made significant investments in this technology and have already accomplished the creation of some solid state batteries. Producing solid state batteries at a low cost in large quantities is the challenging aspect. QuantumScape has generated excitement by claiming to have discovered a material that overcomes a major obstacle to mass production of solid state batteries - their susceptibility to short circuits from imperfections. However, industry experts predict that solid state batteries will not be commonly accessible until approximately 2030. Elon Musk, CEO of Tesla, stated on a recent conference call that mass producing batteries is an extremely difficult task, contrasting it with the relative ease of creating prototypes. Scaling up production is quite challenging. Having a degree in electrochemistry is currently in high demand, as those who possess knowledge of lithium, nickel, cobalt, and other battery materials are essential to the battery industry, similar to how software coders are crucial to computers. An example is Jakub Reiter, who has had a passion for battery chemistry since his youth in the 1990s in Prague. Despite it not being a popular career choice at the time, Reiter was recruited by BMW in 2011 while conducting graduate research in Germany to help them understand battery science. Recently, he was hired by InoBat to assist in establishing a factory in Slovakia, where major car manufacturers like Volkswagen, Kia, Peugeot, and Jaguar Land Rover are located. Reiter is currently the head of science at InoBat, a company that specializes in technology for rapidly creating batteries tailored to various needs, such as affordable batteries for commuter cars or high-performance ones for roadsters. Reiter noted that two decades ago, there was little interest in batteries, but now there is fierce competition and a significant struggle in the industry.