OneD Battery Sciences Ceases Operations in Lake Moses

OneD battery Sciences has reportedly shuttered its trial production facility in Lake Moses, Washington. This growth comes to light through information shared by OneD staff on LinkedIn, signaling a potential shift in teh company’s strategic direction.

Rapid Expansion Followed by Contraction

The closure arrives shortly after OneD battery Sciences announced the successful completion and commissioning of a site dedicated to producing Sinanode, a silicon anode product intended for next-generation batteries. In August 2024, the company touted this milestone as a turning point in scaling up Sinanode material production for the global battery market.

This turning point marks an crucial step forward to increase the production of Oneed’s Sinanode materials for the global battery market.

The company invested between $15 million and $20 million in the Lake Moses facility, with plans to produce 100 tons of silicon graphite anode material annually. OneD,which has been in operation for over a decade,has secured nearly $100 million in investment. Reports also indicate potential redundancies at OneD’s California location.

External factors and Policy Impacts on the Electric Vehicle Battery Market

The closure occurs amidst a backdrop of shifting governmental policies and trade dynamics.While the previous governance advocated for policies supporting domestic battery production for electric vehicles (EVs) and grid storage, recent policy changes have aimed to roll back some of these initiatives, favoring internal combustion engine vehicle production. According to a recent market analysis, the global electric vehicle (EV) battery market, valued at an estimated USD 44.69 billion in 2022,is projected to experience substantial growth,with a compound annual growth rate (CAGR) of 21.1% from 2023 to 2030 [1]. This growth underscores the importance of adapting to evolving market conditions and policy landscapes.

Former OneD CEO Vincent Pluvinage suggested that trade tensions contributed to the closure by dampening EV demand. OneD has a partnership with General Motors R&D to possibly integrate its technology into GM’s EV batteries.

Challenges and Adjustments in the Battery industry

OneD’s situation mirrors adjustments occurring elsewhere in the battery sector. Group14 Technologies, another Washington-based battery firm constructing a larger production site in Lake Moses, announced a slowdown in their construction timeline.

According to Group14’s CEO, the decision to slow down was influenced by constant tariffs and trade uncertainty, prompting a more deliberate approach to the final construction phases. Despite these challenges, Group14 maintains that global demand for its SCC55 silicon anode material remains strong and anticipates bringing its equipment online in the latter half of the year.

By giving constant tariffs and trade uncertainty, we simply use a deliberate approach to the final stages of construction. Global demand for SCC55 [Group14’s silicon anode material] It is indeed still incredibly strong, and we continue to move quickly wherever it makes sense to support our customers around the world.

Moses Lake: A Hub Facing Headwinds

Moses Lake,situated a few hours from Seattle,has attracted several battery companies,including OneD,Group14,and Sila Nanotechnologies. The area was seen as a promising location for battery innovation and manufacturing.

In October 2023, OneD’s operating manager, Jan-Marc Luchies, expressed optimism about the competitive landscape, stating, I think it’s good to have competition… And I really believe that our product is better too.

I think it’s good to have competition… At the same time, I think we are very effective with our money, so at this stage we don’t waste so much money.And I really believe that our product is better too.

Rec Silicon, a silicon manufacturer that ceased its Lake Moses operations earlier in the year, alluded to the difficulties faced by silicon anode battery companies during an earnings call. rec Silicon’s CEO, Kurt Levens, mentioned that a “smaller” company had “recently” closed its facility in Lake Moses, though he did not name OneD specifically.

Ongoing Projects and Future Prospects in the Electric Vehicle Battery Market

Despite OneD’s closure, other companies are moving forward with their plans in the region. Sila announced the commencement of the transfer phase for its Lake Moses facility, which will serve as its first large-scale automotive manufacturing plant. Sila anticipates initiating silicon anode material production in the second half of this year. Both Sila and Group14 received $100 million grants from the Department of Energy in 2022 to bolster their production capabilities. Furthermore, Group14 secured a new DOE grant in September to establish a Silane plant, which will produce a crucial component for silicon batteries.The electric vehicle (EV) battery market is positioned for strong growth between 2025 and 2035, driven by the accelerating shift toward electrification in the automotive industry and the global commitment to reducing greenhouse gas emissions [2].

These developments highlight the dynamic nature of the battery industry and the ongoing pursuit of innovative materials and manufacturing processes to meet the growing demand for electric vehicle batteries.