London/New Delhi: Nexon, a UK-based advanced chemical cell (ACC) startup, will supply advanced materials to Japanese electronics and electrical products maker Panasonic Corporation. UK-based battery startup Nexon will supply high-energy silicon anode material to Panasonic’s new US plant starting in 2025, the companies said on Monday, according to a report by news agency Reuters. By using silicon-rich anodes, Japanese company Panasonic will develop batteries capable of storing more energy and charging faster, the companies said. Currently, Panasonic also offers the option of making smaller, lighter packs with high energy density batteries in the same range.
Deliveries will begin from 2025
Abingdon-based Nexon will supply materials to Japanese company Panasonic Energy Co.’s $4 billion De Soto, Kansas plant, which is slated to open in early 2025. Nexon’s rivals in making silicon-based anodes are two US startups, Group 14 in Woodinville, Washington, and Silla Nanotechnologies in Alameda, California.
Korea’s SK Group invested in Nexon.
Founded in 2006, Nexon has raised more than $260 million and was recently valued at $350 million, according to investor website PitchBook. Its corporate investors and partners include Korea’s SK Group, which manufactures batteries and battery materials. US-based battery startup Group 14 has raised about $650 million in markets and was recently valued at $3 billion, according to Pitchbook. Its corporate investors include German automakers Porsche, SK and BASF. Group 14 signs a contract to supply silicon anode material to Porsche affiliate Salesforce.
They are corporate investors in American battery startup Sealer
According to Pitchbook, Silla has raised $935 million and was recently valued at $3.3 billion. Its corporate investors include Mercedes-Benz, Siemens, Samsung and Chinese battery giant CATL. Mercedes is set to become Silla’s first automotive customer in 2025, starting with the EQG electric SUV.
India invites bids to manufacture advanced batteries
Let us say that to meet the domestic demand in India, the central government has called global rates last Friday. Following this, news is coming that representatives of Japanese company Panasonic have met officials of Ministry of Heavy Industries to develop Advanced Chemical Cell (ACC) in India. At this meeting, government officials advised Panasonic’s representatives to submit an application under the PLI scheme. However, American electric car maker Tesla wants special treatment (change in policy and rules) from the government to manufacture advanced chemical cells in India. According to him, the government has made it clear that Tesla will not be given any special treatment for manufacturing advanced chemical cells in India.
What is the use of advanced chemistry cells?
Let us say that chemical battery (Advanced Chemistry Cell-ACC) is a new generation advanced storage technology. It can store electrical energy in the form of electrochemical or chemical energy and convert it into electrical energy when needed. It can be mainly used in electric vehicles, maintaining grid stability, rooftop solar projects, consumer electronics, etc.
Government provides incentives for battery production
To increase production of batteries (advanced chemistry cells) used in electric vehicles (EV) in India, the central government has invited bids under the Production Related Incentive Scheme (PLI Scheme) last Friday i.e. July 21, 2023. Under this Rs 18,100 crore programme, the government aims to promote the production of advanced chemical batteries (Advanced Chemistry Cells-ACC) of remaining 20 GWh capacity. The Indian government has set a target of zero carbon emissions by 2070 and reducing environmental pollution and dependence on fossil fuels.
US applies IRA to battery manufacturing
With this, we tell you that the US President Joe Biden administration has recently implemented the IRA (Inflation Reduction Act) to promote domestic production of advanced chemical cells. Under this law, subsidies are provided by the US government as an incentive to set up battery manufacturing plants in America and start production. Climate, health care and tax provisions have been given special attention by the IRA to combat inflation on behalf of the Biden administration. The Act provides funding for underprivileged, low-income communities and tribal communities to take advantage of zero-emission technologies.
China has a problem with America’s IRA
China, which monopolizes the world’s battery recycling market, has faced problems after the Joe Biden administration encouraged battery manufacturing in the United States. It has also sparked fears that the US is trying to enter its global battery recycling business through the IRA. Because of this, he has also indirectly threatened America that blocking their way will have serious consequences in the future.
$10 billion in tax credit benefits
The act taxed large and profitable companies so that they could pay their fair share without taxing households making less than $40,000 per year. Under it, it imposes a fee on methane leakage from oil and gas drilling. The law changes federal tax incentive policies for EVs while promoting the use of electric vehicles (EVs) and securing the domestic supply chain for their production. The act provides $10 billion in investment tax credits for the construction of clean technology manufacturing facilities.
