The global competition for electric car batteries has significant economic implications for automakers, battery startups, and consumers. In the near future, consumers will have a wide variety of electric cars to choose from, each utilizing different battery technologies. The composition of batteries, once a technical matter for engineers, is now a key topic of discussion in the corporate offices of major automakers like General Motors, Toyota, Ford, and Volkswagen, as well as in government circles. These companies are investing in startups that are revolutionizing battery technology in order to stay competitive in the electric car market. Mastering battery technology will be crucial for automakers hoping to succeed in the face of competition from companies like Tesla. The price and performance of new cars may ultimately be determined by the advancements in battery technology. Just like how consumers used to focus on megapixels in cameras and 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 Hau Thai-Tang, chief product platform and operations officer at Ford Motor, the battery in electric vehicles will be the new brand differentiator. Batteries will also play a crucial role in combating climate change by transitioning vehicles and the power sector away from oil, coal, and natural gas. With the increasing demand for electric cars, automakers are quickly learning about battery chemistry in order to make batteries more affordable and efficient. Currently, batteries make up a significant portion of the cost of electric cars, with most of them being produced by a small number of Asian companies. Even Tesla, a major player in the electric car industry, depends on Asian suppliers and is working towards increasing its in-house manufacturing. President Joe Biden recently urged companies to shift more of the battery supply chain to the United States, highlighting the strategic significance of such efforts in light of Russia's invasion of Ukraine. Volkswagen had to close its main electric vehicle factory in Germany temporarily due to disruptions in the supply of parts from western Ukraine. Auto companies like Stellantis are investing heavily in startups like Factorial Energy, a company with less than 100 employees in Woburn, near Boston. Factorial is working on developing a battery that charges faster, holds more energy, and is less likely to overheat than current batteries. The co-founder of Factorial, Siyu Huang, is focused on creating a safer battery to improve people's lives. High-ranking officials in the Biden administration have expressed their desire to assist in improving the use of battery technologies developed in the United States, acknowledging that China has seen great success in this industry. The Energy Department is considering providing financial support to companies involved in manufacturing batteries or supplying necessary components and minerals. There are currently 10 pending applications requesting over $15 million in funding for battery-related projects. Transportation Secretary Pete Buttigieg mentioned that a lack of innovation had negative effects on his hometown of South Bend, Indiana, where the now-defunct Studebaker company was once located. "Innovation is crucial for the past, present, and future of our automotive industry, as we can see now with the opportunity for the United States to lead the electric vehicle revolution," he stated. The most immediate change on the horizon is in the composition of batteries. While most electric vehicle lithium ion batteries utilize nickel, manganese, and cobalt, some manufacturers like Tesla and Ford are transitioning to lithium iron phosphate batteries, which are widely used in China. These LFP batteries, as they are referred to, may not have the same energy storage capacity per pound as traditional batteries, but they are more affordable and have a longer lifespan. Tesla intends to provide LFP batteries in less expensive electric vehicles with shorter ranges. Ford is also planning to incorporate these batteries in certain trucks for fleet owners under its Ion Boost Pro brand. Ford executive Thai-Tang mentioned that these trucks may be suitable for delivery, plumbing, electrical work, and landscaping within a specific area. Ford is collaborating with SK Innovation from Korea to produce the batteries, with the goal of eventually moving 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. Teslas equipped with these batteries have a range of approximately 270 miles per charge, whereas comparable models with nickel and cobalt batteries can travel about 358 miles. In addition, LFP batteries may experience a decrease in power in freezing temperatures and take longer to recharge. Ford's upcoming electric F-150 pickup truck, with 200,000 reservations already made, will utilize batteries with a higher nickel content from SK Innovation. Tesla has produced 1 million cells for its new "4680" battery, featured in the Model Y crossovers, which CEO Elon Musk claims will offer a 16 percent increase in range due to its unique honeycomb design. "In 2020, he stated that something is difficult until it is uncovered, and then it becomes easy. GM asserts that their Ultium battery cell requires 70% less cobalt compared to the cells in the Chevrolet Bolt electric hatchback. The company has included aluminum in their battery. The GMC Hummer pickup, recently released by GM, is the first vehicle to utilize this battery technology. In collaboration with South Korea's LG Chem, GM is constructing a $2.3 billion battery factory in Lordstown, Ohio." It is one of at least 13 major battery factories currently being built in the United States. The importance of batteries in auto branding is growing, as seen with GM advertising Ultium batteries. This underscores the need for these batteries to be dependable and safe. GM recently had to recall the Bolt due to a battery defect that could cause fires. Numerous car manufacturers are keen on decreasing their use of cobalt, largely because most of it is sourced from the Congo through Chinese-financed companies or freelance miners, some of whom may employ child labor. Markus Schäfer, a senior Mercedes executive in charge of research and development, expressed concerns about potential human rights violations, child labor, and difficult working conditions for artisan miners. The auto industry is particularly worried about nickel supply, as Russia is a key supplier of this metal. A team of approximately 25 government scientists at the Oak Ridge National Lab is working on advancing these innovations. They are comparing conventional electric car batteries with a cobalt-free alternative by charging and discharging them for weeks to measure performance. Ilias Belharouak, the head of the Oak Ridge Battery Manufacturing Center, stated the objective is to reduce battery costs by up to 50%, extend their range to over 300 miles, and decrease charge times to 15 minutes or less. Funding for this project will come from the $200 million granted by the Energy Department to seven national labs. In the upcoming month, the department will organize 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 a major transformation in battery construction, rather than just changing the materials used. Today's batteries use a liquid solution as an electrolyte to conduct electricity between components. Solid-state batteries, on the other hand, do not require a liquid electrolyte, making them lighter, able to store more energy, and charge faster. They are also safer and do not require as much cooling equipment. Many car manufacturers are investing in solid-state technology, with Volkswagen backing QuantumScape, a company located in San Jose, California. BMW and Ford are betting on Solid Power, a company located in Louisville, Colorado. General Motors has invested in SolidEnergy Systems, which was founded at the Massachusetts Institute of Technology and is headquartered in Singapore. The timeline for the arrival of solid-state batteries is uncertain. Stellantis aims to release mass-market vehicles with these batteries by 2026, but other industry executives predict the technology may not be widely accessible until around 2030. The first automaker to offer solid-state batteries will have a significant competitive edge. Huang, the co-founder of Factorial, mentioned that she and her business partner, Alex Yu, often work overnight to meet technical benchmarks. She is driven by memories of the polluted air she experienced growing up near Shanghai. Huang stated that the company's main goal is to work towards a fossil-free future, which is also her personal aspiration. Despite currently operating on a second floor, Factorial aims to expand globally and build factories worldwide, with investments from Mercedes-Benz and Hyundai. In laboratories, employees in white coats diligently test prototype cells. Andrew Miller, the chief operating officer at Benchmark Minerals Intelligence, stated that despite the frenzied activity in the auto industry, there could be a struggle to meet demand for new batteries due to limitations in mining and processing raw materials, especially lithium. Miller expressed uncertainty about where the necessary raw materials will come from for the ambitious plans of companies in the next three years.