Positioning the U.S. in the electric vehicle market requires developing a domestic supply chain

Recent trends in the automotive industry indicate that there is a significant shift towards electric vehicles (EVs), driven by global sustainability goals and technological advancements. As countries around the world race to dominate the growing EV market, the United States faces a crucial challenge: building a robust, domestic EV supply chain. From mining rare earths to producing high-capacity batteries, establishing this supply chain will be critical if the US wants to remain competitive in the EV sector.

But how can the US achieve these ambitious goals amid global competition and limited domestic resources?

By pressing this question during a Experts talk round table discussion on the electric car industry and its potential growth trendsgoods Michael S. Davies, a seasoned data scientist and founder of Green Econometrics, and Dr. Dave Tuttle, a research associate at the Energy Institute at the University of Texas at Austin. Their discussion detailed some of the complexities and strategic needs of developing a US-based EV supply chain, from raw material acquisition to advanced manufacturing techniques.

Here are five key takeaways from their analysis:

• The US lacks significant supplies of essential raw materials such as lithium, nickel and cobalt, which are crucial for battery production. This scarcity underlines the need for strategic international partnerships and improved geological exploration domestically.
• The US lags behind countries like China in battery manufacturing capabilities and the detailed processes involved. Closing this gap is essential to reducing costs and improving competitiveness in the market.
• Notable are potential lithium deposits in places like the Salton Sea in Southern California and Wyoming. These could become critical in establishing a domestic supply base if environmental and regulatory challenges are successfully addressed.
• With the competitive pressures companies like Tesla face, diversifying into new areas such as autonomous driving and energy storage could be strategic for revenue growth and sustainability.
• Accelerating domestic mining operations while adhering to strict environmental standards is a balancing act that will determine the pace and success of developing a domestic EV supply chain.

Davies and Tuttle not only highlight the hurdles the US currently faces, but also chart a path for the US to secure a leading position in the global EV market.

Article by Alexandra Simon.