Battery show in Detroit pairs optimism and uncertainty for an electrified auto industry - Action News
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Windsor

Battery show in Detroit pairs optimism and uncertainty for an electrified auto industry

As the Motor City hosts its first battery show, the industry celebrates success in the face of growing threats.

Industry executives believe say predictable policies needed to build momentum

A group of people talking around a battery concept
The expo floor of the North American battery show is full of concepts and advancements made in the industry. (Chris Ensingh/CBC)

Onthe conference floor of North America's largest battery technology show are signs of the monumental push to electrify the auto industry amid the looming threats that come with an unpredictable presidential election.

With growing pressure from consumers to lower costs and increase reliabilityof electric vehicles, industry leaders are worried about making a wrong move even before ballots are cast inNovember.

"There's a number of folks concerned about over committing or under committing to different things over the past year," said James Trevey, a battery supply chain expert.

"The upcoming election has already caused a slow down on a lot of things."

Trevey, speaking in Detroit as part of a panel on possiblepolicy shifts following the election, believes the election outcome could shift the entire industry.

"It may not be the end of the world, right, but it would be a slow down in an industry trying to grow fast."

Does Trump swing asledgehammer or scalpel?

It was a continued theme brought up during panels and workshops during this year's show, the first to be held in the Motor City after years operating out of nearby Novi, Mich.

With organizers of theDetroit Auto Show opting to skip 2024to return back to its historic January dates, this was a timely event to openly discuss the future of the automotive industry during an election.

Suzanne Swink, vice president of government relations atclean energy company KORE power, said that if the Republican nominee former president Donald Trump is elected,there will be a shift in policy direction.

"I don't think it will be a sledgehammer approach, I think it will be a scalpel," said Swink.

James Trevey sits on the right end the panel while Suzanne Swink answers questions from the audience.
James Trevey sits on the right end the panel while Suzanne Swink answers questions from the audience. (Chris Ensing/CBC)

That could mean changes like increasing tariffs on vehicles or components from foreign countries, cutting tax incentives that have brought battery manufacturers to the United States, or changes to environmental policies that deal with vehicle emissions.

There's a belief that Democrat nominee Vice-President Kamala Harris will continue or expand programs that experts believe have been effective in drawing battery makers to build in the United States along with the supply chain needed to support them.

One of those policies, referred to as 45X, gives qualifying companies a$45 tax credit for every battery cell and module produced.

"It's hugely important and I think there's enough bipartisan support," said Swink.

That incentive was passed in 2022 as part of the Inflation Reduction Act, which was used by LG Energy Solutionand Stellantisto renegotiate their deal with Canada to bring a battery factory to Windsor.

LG Energy Solution hits major battery charge time goal

That plant is now about a year away from producing batteries that executives at the show in Detroit say are getting better each year.

Timothy DeBastos, LG Energy Solution's head of North American battery development, said the company just celebrated an eight-minute charge for its newest battery in development.

LG Energy Solution showed off some of the company's battery technology to journalists during the battery show.
LG Energy Solution showed off some of the company's battery technology to journalists during the battery show. (Chris Ensing/CBC)

"We're making progress through innovation," said DeBastos, highlighting how aFord Focus had a 112 kilometre range in 2012 and now the best-selling battery electric vehicles can hit 500 kilometres.

"We were clocking to see how fast we could do it.So eightminutes, that's pretty good and that's in progress for mainstream, which I think we're doing at about 20 to 30 minutes."

That's what they're measuring for fast charges, which DeBastospoints out are not conveniently available across North Americaand represents a pain point that the government and industry partners need to improve.

As for LG Energy Solution, itsnext milestone lieswith production.

"Without disclosing too many specifics, we're getting very close to achieving mass production and being able to make cells and modules to scale with quality and to do it consistently," said DeBastos.

"We're making good progress with that but I would say in terms of the challenge though is just getting to that point where we can mass produce Xamount within a short, finite amount of time and to do it with high quality, we're just about there.

What role does Windsor's battery plant have in LG Energy Solution's future?

4 days ago
Duration 1:21
Timothy DeBastos, LG Energy Solution's head of North American battery development, outlines the benefits of Windsor's NextStar Energy battery plant and the challenges the company faces.