Anovion CEO Eric Stopka signs an agreement with officials from Bainbridge and Decatur counties in Southwest Georgia. Photo: Anovion
North America’s only commercial producer of synthetic graphite builds $800 million facility in Georgia as US steps up efforts to reduce dependence on China for key battery material.
Chicago-based Anovion Battery Materials announced its investment in Bainbridge this week as the race for the critical minerals that power electric vehicle batteries heats up around the world. The 1.5 million square foot facility will employ 400 people.
The company’s decision to expand from a single facility near Niagara Falls, NY — one of the few US facilities commercially producing synthetic graphite today — to a much larger operation in the southwest corner of Georgia came after the Department of Energy was selected for a $117 million grant funded through the bipartisan infrastructure bill.
In addition, automakers are struggling to source battery minerals and components in the US or Free Trade Partner countries to comply with the Inflation Reduction Act.
This year, half of the $7,500 tax incentive offered to electric vehicle buyers is contingent on at least 40 percent of “critical minerals” like graphite coming from compliant countries; The threshold increases by 10 percent annually and will reach 80 percent in 2027.
Graphite, which can be mined or synthetically made from a petroleum by-product called needle coke, is an important anode material and the most abundant material in a lithium-ion battery. Based on previously announced U.S. battery production of around one terawatt, graphite demand is expected to exceed supply by more than 1.2 million tons by 2030, Anovion CEO Eric Stopka said in an interview with Global Atlanta.
“Nearly negligible amounts of it are produced in the United States today,” Mr. Stopka said.
Once Anovion produces 40,000 tons per year, it will have many potential customers nearby: Georgia already has an ECV battery plant operational, SK On is investing $2.6 billion in Commerce and a joint venture plant between SK On and Hyundai Motor is currently being built in Cartersville.
Like automakers, Hyundai Motors is building an electric vehicle plant nearby savannah – the so-called “Meta Plant America”, which will start production in 2025 and create 8,000 jobs – while Rivian plans to produce its electric trucks in Covington.
In the interview, Mr. Stopka gave no specific prospects for the company, but said talks have been held with OEMs as well as “niche users” such as the Department of Defense.
“We clearly see our primary growth vehicle in the electric vehicle space and the need to begin installing grid storage systems to support the push towards renewable energy,” said Mr. Stopka, noting that the company’s motto is “securing the supply chain”. of the electrified future.”
Most of the world’s graphite processing now takes place in China, using older methods that do not meet the needs of today’s stakeholders seeking a lower carbon footprint across the battery value chain, supporting the climate argument behind the move to electric vehicles from gas-powered vehicles.
Founded in March 2022 as a spin-off from Pyrotek Inc. and Amsted Graphite Materials, Anovion combines proprietary furnace technology and controls with a flexible, growth-oriented mentality, he said.
“As we are a relatively young company with existing technology, we are not locked into the old, established technology. Currently, old established technology is being used in China, which now controls over 90 percent of the world’s graphite processing and production,” said Mr. Stopka.
He added that the company’s “life cycle assessments” show a lower emissions intensity of Anovion’s materials than mined graphite and competing producers.
That’s partly because most of the graphite used in cell production in the US today is shipped around the world from Asia. Being in Bainbridge allows for faster travel from the factory to US customers and drastically reduces emissions from logistics.
Why Georgia?
Logistics was just one factor in Georgia’s selection among the 15 states that Anovion began collecting proposals from late last year. That list was truncated to ten and then narrowed down to four top candidate communities that company representatives visited in person.
Bainbridge had the right mix: available land for a 1.5-million-square-foot facility, good rail and inland waterway links, and a workforce that was “technically capable, capable of schooling or upskilling,” Mr. Stopka said.
“We have found enough workers Decatur County who are currently leaving the county in search of other, high-quality jobs in other industries. We believe we can tap into that workforce first and allow people to work closer to where they live in the county itself,” he said.
Since most jobs require computer skills and knowledge of how to operate and maintain technical equipment, the long-term goal is to build a “sustainable employment chain” by working with local high schools and colleges.
Georgia’s efforts to improve its clean energy supply also paid off, with new nuclear reactors coming online in Augusta and large solar farms booming in the southern part of the state.
“We’ve been really impressed by the steps that have been taken across the network to go from a fairly decarbonized footprint to an even stronger one in the future,” Mr Stopka said. “This was really important to us because we are committed to our customers to drive a climate engineering process that aims to eliminate as many greenhouse gases as possible.” The company plans to be carbon neutral in the long term.
The local community and the Georgia Department of Economic Development also made the company feel welcome, added Mr. Stopka.
“I can tell you that on each visit to Bainbridge to discuss the project, the state has been well represented, which for us showed a very strong level of support,” he said. “The support from the city to the county to the state was consistently very strong.”
Governor Brian Kemp, whose plans to make the state the electric mobility capital of the US also appealed to Anovion, welcomed the company to the state.
“Job creators like you are realizing that every corner of our state has the resources and manpower needed to succeed. Having met their team in person, I look forward to celebrating their partnership with the hard-working Georgians of Decatur County,” Mr. Kemp said in a statement.
Anovion is also expanding its Center of Excellence and hydroelectric facility in New York to meet demand.
