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Addionics plans $400M for U.S. battery tech factories

an illustration of the statue of liberty holding a battery instead of a torch

Illustration: Tiffany Herring/Axios

Addionics, a battery parts maker, announced Monday that it plans to invest $400 million in manufacturing facilities in the U.S.

Why it matters: The Inflation Reduction Act's incentives continue to lure battery companies from across the globe, in a major supply chain re-route onto American soil.

How it works: The U.K.- and Israel-based company, which makes an integral part of a battery called the current collector, said its U.S. factories could make enough of its foils to support 90 GWh of battery capacity a year, with commercial production starting in 2027.

  • Addionics CEO and co-founder Moshiel Biton said the company is looking at two states in the U.S. to build facilities but isn't yet disclosing the locations.
  • Biton said the $400 million could come from a combination of grants, debt and equity.

State of play: Addionics is just the latest battery materials company to opt for building factories in the U.S.

  • Late last year, Freyr Battery stopped building a factory in Norway and decamped for the U.S., with a plan to invest in a factory in Coweta County in Georgia to follow the IRA incentives.
  • In a recent profile of the small industrial Norwegian town Mo i Rana, which lost the Freyr factory and the potential of thousands of jobs, the managing director of a local chamber of commerce group lamented "[t]he Inflation Reduction Act changed everything."
  • Asian companies, which largely control the global battery supply chain, have been investing in the U.S., too, both big names and startups.
  • A list of announced EV-related facilities and jobs includes dozens of large companies like Japan's AESC, Dai Nippon Printing and Asahi Kasei, and Korean companies LG Energy Solution, Hyundai, SK On, and Samsung SDI.

Yes, but: Companies have faced rising costs of building factories, and some like battery-materials recycler Li-Cycle have ended up dialing back.

  • Domestic mining projects for EV metals have faced a double punch of a price collapse and slower-than-expected EV sales.

How it works: Addionics' current collectors are made of a 3D porous structure that's like a sponge compared to traditionally flat metal current collectors.

  • The foils can hold more active material, and battery makers can use them to reduce costs by 10% by eliminating some of the inactive material, Biton said.

Big picture: The IRA funds that support battery manufacturing in the U.S. have become among the most attractive in the world.

What's next: Many of the manufacturing companies are in the early stages of planning and building out these factories, and not all of them will get built.

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