Advertisement

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Energy Storage

Trump could be a mixed bag for the US battery industry

Demand for batteries will likely cool, but support for US manufacturing projects may continue

by Matt Blois
January 10, 2025 | A version of this story appeared in Volume 103, Issue 1

 

Donald Trump stands next to a silver electric pickup truck at the White House.
Credit: Shealah Craighead
President-elect Donald J. Trump's policies are likely to decrease demand for batteries but could make project permitting easier.

Takeaways

President-elect Donald J. Trump’s policies are likely to dampen adoption of electric cars and demand for battery materials.

Trump’s promises to boost US manufacturing may mean a continuation of government support for battery materials production.

On the campaign trail last year, Donald J. Trump ping-ponged between expressing his love for electric vehicles (EVs) and criticizing government support for them as “insane.” As a result, the country’s battery industry sees the impact of his victory in the US presidential election as a question mark.

The Trump administration will probably try to eliminate tax credits in the Inflation Reduction Act for buying EVs, says Bryan Bille, a policy analyst at Benchmark Mineral Intelligence, a research firm focused on the battery supply chain. This move would slow the adoption of EVs and reduce demand for batteries and battery chemicals. After Trump’s election, Benchmark lowered its forecast of US demand for lithium and nickel chemicals in 2029 by 15%.

On the other hand, a Republican-led government could make it easier for companies planning mining and metal-refining projects to secure environmental permits, Bille says. Over the past few years, lawmakers have proposed legislation to speed up the federal government’s permitting process, but the bills have failed to pass despite bipartisan support. Such efforts could become a bigger priority during Trump’s second term. Trump and his allies “seem to be keen to address this rapidly,” Bille says.

A crane raises a steel beam to the top of a building under construction.
Credit: Ascend Elements
President-elect Donald J. Trump has expressed enthusiasm for US manufacturing projects, which could help plants like Ascend Elements' battery recycling facility in Kentucky.


Trump is also eager to boost US manufacturing, notes Rob Burrell, research manager at the battery industry intelligence company Project Blue. That means tax credits for new battery materials plants are more likely to stay than the consumer EV tax credits. Battery materials firms are building many of these plants in Red states, and an attempt by the Trump administration to pull funding from them could face resistance from GOP lawmakers and governors.

That unpredictability is putting some people off in terms of making big decisions.
Rob Burrell, research manager, Project Blue

But companies considering US battery materials projects will probably be hesitant to make final decisions until the incoming administration’s policies become clearer. Trump frequently broadcasts his enthusiasm for US-based manufacturing and criticizes government support for electric cars. “That unpredictability is putting some people off in terms of making big decisions,” Burrell says.

Article:

This article has been sent to the following recipient:

0 /1 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.