The IRA is a major step forward. Now the focus must remain entirely on US battery manufacturing.

Curtis Collar, Nanotech Energy’s Chief Sales and Marketing Officer, looks ahead to a future shaped by the Inflation Reduction Act.

The Inflation Reduction Act (IRA) is one of the most welcome signs the US government finally understands the importance of the ongoing and accelerating transition to clean energy. Signed into law in August 2022, its scale is unprecedented. More than $250bn of federal funds is being invested into clean energy. Almost $48bn is directed into manufacturing.

The effect it will have on our nation – in terms of jobs and opportunities, and health impacts through cleaner air – is not to be dismissed. If it is administered well, the IRA has the potential to help restore the might of American manufacturing, making us competitive again with other regions that have led the way in recent decades.

The Congressional Research Service has detailed some of the incentives on offer through the IRA: for manufacturers, they include $35 per kilowatt hour of battery cell capacity. Pack manufacturers receive $10 per kilowatt hour. On top of that, various end-use markets also get tax credits, such as consumers buying EVs. 

The task now is to ensure the focus remains entirely on only American companies benefitting from these publicly funded commitments. If the IRA unintentionally leads to overseas companies simply being able to bring material manufacturing to the States, then that enables them to own the whole value across America. If they do that, they also own the whole global value chain.

We can all agree the IRA should be about supporting US manufacturing companies. There are lots of companies in the States that are truly American companies trying to make batteries in America, and the IRA is definitely a step forward compared to the US government offering financial support and arbitrarily choosing winners and losers simply through people’s opinions. But now it needs to be easier for those US companies to access funding under the IRA.

As an American manufacturing company producing next-generation and intrinsically safe graphene-powered lithium-ion batteries, we’re proud to be leading our country’s move towards a brighter future.

In the past, automotive companies had few options when it came to sourcing batteries. They’ve traditionally partnered with Asian battery manufacturers because they needed to make the lowest-risk choice. But even when they’ve done that, they’ve still had issues and they’re still struggling with commercialization.

Over the next few years, Nanotech Energy will be at the forefront of changing that landscape. Our new Chico 2 manufacturing facility is only weeks away from being fully operational. From there, we’ll be producing batteries that qualify under the IRA not just now, but also in 2028 and beyond when batteries will be subject to even higher American-made content requirements.

Our graphene, our electrolytes and our other safety materials are all designed to be compatible with any chemistry. That enables us to provide the highest energy density, highest quality, and safest batteries in the market. The future is certainly bright for Nanotech. We hope it is the same for the entire US battery manufacturing industry.