Virginia Klausmeier, President and CEO of U.S. manufacturer Sylvatex discusses the challenges of scalable battery production on the road to net zero, and how the company is looking to change that with its ‘next-generation’ cathode manufacturing processes.
The recently passed and transformational Inflation Reduction Act (IRA) aims to fuel EV adoption and buoy domestic battery supply chains to achieve a long-term climate goal of net zero emissions by 2050. With more than $380 billion to be invested in measures that counter climate change and boost renewable energy, this crucial legislation targets a reduction in carbon emissions of 40% by 2030 on the path to a 2050 net zero objective.
Achieving the nearer-term emissions reduction targets requires accelerated EV adoption, which is currently limited by affordability. The IRA supplies significant tax credits to jumpstart EV purchases; however, the vehicles must comply with the legislation’s U.S. battery manufacturing requirements. To this end, it is necessary to take an introspective look at where we are today with EV manufacturing, specifically the lithium-ion batteries used and their role in achieving net zero.
The connection between the tax credit and the supply chain
The IRA includes a $7,500 tax credit for new EV purchases at the point of sale, fuelling reports that EV purchases will make up more than 50% of all car sales by 2030, an increase from a previously projected 43%. The world’s largest automotive markets, including the U.S., are expected to have new sales be fully electric by 2035.
For consumers to qualify for the full $7,500 tax credit, manufacturers must meet two critical requirements. First, battery raw materials must be sourced from North America or a U.S. free-trade agreement partner. And second, vehicle battery components (such as cathode and anode material) must be manufactured or assembled in North America. The government added these stipulations to galvanize the development of U.S.-based capabilities to bridge critical domestic battery supply chain gaps. Unfortunately for consumers, most current EV car models do not meet these requirements as the U.S. relies on international markets for battery raw materials and components manufacturing, with China being the dominant worldwide supplier.
The IRA is already showing signs of success. Automotive manufacturers are now investing in U.S. battery production, but demand will continue to outpace the supply for some time. Just as critically, a cavernous gap exists in domestically sourced raw material supply and component production. For example, Benchmark Minerals reports that North American cathode production only has the ability to meet 4% of demand by 2030.
This supply and demand gap further drives the importance of propping up innovations that meet the needs of today’s requirements and are also resilient to problems down the road. With billions of dollars being deployed, we cannot be short-sighted in our developments. We can simultaneously meet the domestic supply chain requirements for battery materials and components while ensuring that the manufacturing we invest in is built for future success.
A closer look at battery manufacturing
By a long shot, lithium-ion batteries’ most expensive and carbon-intensive component is the cathode active material (CAM). Today’s conventional lithium-ion battery CAM manufacturing methods cannot support climate goals due to high emissions, waste, and cost. Upwards of 60% of CAM processing materials used are disposed of as waste in the form of sulfuric acid, which has to be transported and disposed of properly, carrying a heavy cost and carbon burden. Moreover, current CAM manufacturing techniques require billions of gallons of water annually, which not only needs to be remediated but will also deplete another critical natural resource as we advance.
Another often-overlooked element is that each manufacturing facility can produce only one type of battery chemistry. The issue here is that these manufacturing plants need more operational flexibility to pivot as technology changes. We have already seen numerous advancements in battery chemistry, both in terms of finding more efficient and longer-lasting chemistries and in terms of efforts to curtail the sourcing of limited critical minerals. What happens when billions of dollars have been invested in a particular chemistry, but that is no longer the best way to make a battery? Introducing optionality, the ability to produce multiple chemistries from the same asset, to cathode manufacturing ensures that U.S. EV production stays viable and environmentally sound in a landscape of shifting technologies and scarcity of materials.
What about recycling?
Recycling, rather than advances in manufacturing, is frequently cited as the answer to reducing costs and creating a more sustainable EV supply chain. Supply chain constraints for critical minerals used in lithium-ion batteries are a substantial risk, and recycling both increases available minerals and helps further decarbonization.
Nevertheless, while EV battery recycling is a vital piece of the bigger net zero puzzle, ample material supply from recyclers will likely not be available for at least a decade, as that is the average lifespan of a battery. We are only now reaching a threshold of EV use that will provide a source from which to recycle. However, waiting for recycling to take hold is not an option – we need to introduce sustainability now, and we can start with improvements to battery cathode manufacturing.
Future-proofing lithium-ion battery production
Achieving a lower-cost, more sustainably manufactured EV in the near term is achievable by employing next-generation cathode manufacturing processes.
Using less processed material inputs – metal oxides and hydroxides instead of metal sulfates – delivers considerable benefits. Using these material inputs expands the yield to 99%, virtually removing waste and the sulfuric acid problem. The next-gen process innovated by Sylvatex also eliminates water use, making this method more eco-friendly and drastically reduces the footprint needed. The smaller facility could mean as much as a 40% reduction in plant capital, promoting localized production, which in turn reduces transportation costs and further shrinks the carbon footprint of the manufacturing process.
Working with metal oxides and hydroxides also pivotally broadens the range of precursor material inputs, meaning a more expansive catalogue of critical minerals can be used. This is one immediate way to ease the pressure on limited mining resources, like nickel, which is in high demand from the booming battery industry and rare domestically.
While EV usage is fundamental to achieving climate goals, achieving net zero means reducing greenhouse gas (GHG) emissions from vehicles on the road and those in production – including the GHG impacts of manufacturing EVs and batteries. The manufacturing impact is critical, as the EV industry is poised to grow more than 23% annually over the next five years and needs to scale up domestic production rapidly. In doing so, we must enact sustainable manufacturing solutions to be able to meet our decarbonization targets.
Future-proofed cathode manufacturing will help the domestic EV market grow and remain competitive while boosting local economies. At the same time, new cathode production will have less environmental impact, which cannot be overstated. The purpose of the electrification movement is decarbonization, so it is imperative that we make this transition as sustainably as possible.
About the Author

Virginia Klausmeier is the President and CEO of Sylvatex, Inc., a venture backed climate tech company that she founded in 2012. With her background in chemistry and engineering,
Virginia has been leading technical and business teams for the last 15 years. She is currently an active collaborator at the national labs, reviewer for scientific awards and grants, and advising climate tech and minority led organizations. She is a fellow of All Raise and Unreasonable Group, as well as a member of Alliance of CEOs, Astia, and E2. Virginia attended University of Oregon earning her B.S. in Chemistry/Economics, M.S. in Engineering, and Executive Program at Singularity University.