Can we Reconcile the Private and Public Sectors in the Battery Industry? Insights from Battery Show Speaker Ben Steinberg

Thought LeaderBen SteinbergExecutive Vice President &
Co-Chair of the Critical Infrastructure PracticeVenn Strategies

Shift in policies have the potential to drastically change the battery industry - discover how with Ben Steinberg.

The Battery Show and Electric & Hybrid Vehicle Technology Expo will be hosted at Huntington Place in Downtown Detroit on October 7-10, 2024. Join 19,000+ fellow peers at the largest advanced Battery and H/EV technology trade show in North America.

Can you provide an overview of your role as Co-Chair of the Critical Infrastructure Practice at Venn Strategies and how it relates to battery technology?

Venn has a robust Critical Infrastructure Practice focused on critical minerals, energy, transportation, environmental, trade, tax, and security policy. This work puts Venn and clients at the center of conversations with the White House and the Departments of Energy, Defense, Transportation, Interior, State, Commerce, the U.S. Trade Representative, and the Environmental Protection Agency, as well as key Congressional Committees and Members.

We specialize in supporting over 30 companies in the battery supply chain, spanning critical mineral mining, materials processing, component and cell manufacturing, and recycling. Venn founded and manages the Battery Materials and Technology Coalition (BMTC), a 17-member group dedicated to advancing the sector in North America.

Through this coalition, Venn played a pivotal role in drafting the law that secured $6 billion in grants for battery materials processing, manufacturing, and recycling at the Department of Energy (DOE). This legislation was successfully passed as part of the Bipartisan Infrastructure Law. Venn also helped secure over $750 million in grants for six of our clients. Across two rounds of funding, BMTC members have collectively secured 11 grants from 10 companies.

Venn also leads the US Battery Machine Builders, a group of six companies that manufacture machines used in processing battery materials and constructing battery components and cells. Additionally, Venn manages the North American Graphite Alliance, which represents six natural and synthetic graphite producers in the US and Canada.

What key trends or challenges do you see in the battery materials supply chain, particularly given your work with coalitions like the Battery Materials and Technology Coalition?

The most significant trend is the growing demand for batteries across various sectors, including transportation, grid storage, and other industrial and consumer applications. While some battery manufacturing has temporarily slowed, the overall trend is decisively upward, and I believe this growth is here to stay.

The US government and industry are actively working to build critical supply chains domestically and with allied nations. The Infrastructure Investment and Jobs Act, along with the Inflation Reduction Act, have been instrumental in supporting the onshoring of production. It is essential to ensure that these investments and policies continue to benefit the industry in the long term and that private financiers recognize the growing demand, leading them to invest in this rapidly expanding domestic sector.

With your extensive experience at the US Department of Energy, how do you see US energy policy shaping the future of battery technology and innovation?

Without strong federal policy, I believe the US battery industry would struggle to compete with China, which is far ahead of the rest of the world in battery technology and supply chains. I am a strong advocate for the role that public policy and public-private partnerships play, especially when it comes to the support that effective energy policy and federal programs can provide. During my time at the Department of Energy (DOE), I contributed to the Quadrennial Energy Review, which coordinated energy policy across 22 federal agencies. Many of the recommendations from that report were later enacted into legislation by Congress.

Today, we are in the era of industrial policy. This inextricably links the public and private sector resources to onshore the manufacturing of critical materials and technologies foundational to our economic and national security. When President Biden took office, his team wrote Executive Order 14017, which focused on critical minerals, semiconductor chips, health care supplies, and batteries. Since then, there has been a myriad of strategies, initiatives, programs, policies, and funding that have promoted the growth of the industry in the US.

What is positive is that this effort is relatively well-coordinated across federal agencies and remains largely a bipartisan issue on Capitol Hill. As a result, I expect continued support for the sector.

Image Credit: sommart sombutwanitkul/Shutterstock.com

You have worked closely with both the private and public sectors on energy-related issues. What role do government partnerships play in advancing battery technology?

It has been a historic time for government deployment given the passage of the IIJA and IRA. Over the past three years, the private sector has been working with government on grant funding for the sector through the DOE battery grants, DOE’s Loan Program Office, DOD’s Defense Production Act Title III Program, Export-Import Bank Loans, research and development grants, and more.

Simultaneously, industry has been advising the Commerce Department and US Trade Representative on tariffs and trade remedies so that the industry can emerge and stay competitive. This culminated in the Administration finalizing 301 tariffs against Chinese goods including increasing EV and battery tariffs.

Moving forward, we need to see three things continue for the sector to be able to succeed. First, we need to make sure the funding continues to be deployed from the IIJA and IRA. We are just at the beginning of these key projects, and we will not see full-blown success until 2030 and beyond. 

We also need to put in place long term incentives that support the industry past five years. The 45X Advanced Manufacturing Production Tax Credit for critical minerals is a great example of this in the IRA. The credit has not sunset. Next year, Congress will need to pass a tax reform bill and there is an opportunity to double down on our support for the sector.

Given the shift towards renewable energy and electric vehicles, how critical is the development of domestic battery manufacturing infrastructure for the US?

We have a unique opportunity to maintain our leadership in the energy and transportation sectors, which are vital to our economy and job creation. The auto industry alone accounts for 5 % of our GDP. If we do not prioritize domestic manufacturing, we risk losing ground in terms of jobs, economic development, and the resilience and security of our supply chains. This is the new heartbeat of the industry. It makes sense to regionalize supply chains, collaborate with our allies to build resilience, and ensure we manufacture at home to foster innovation, create critical know-how, and generate the jobs that will sustain our way of life.

What is your perspective on the potential impacts of a policy shift next year, particularly concerning battery materials and energy storage solutions?

As you can imagine, it is the question I get asked most often. Next year, tax policy will be a major focus, with the House responsible for originating tax legislation. If the chambers are split, there will be a need for compromise on tax policy, including provisions from the Inflation Reduction Act (IRA).

Following that, Congress will address transportation reauthorization, which will include EV and infrastructure-related provisions. Additionally, I believe there is bipartisan support for passing permitting reform and a second China bill in the upcoming Congress or possibly even during the lame-duck session this year. There is a lot of potential for Congress to deliver.

Could you elaborate on the work being done by the North American Graphite Alliance and how this ties into the evolving battery ecosystem?

NAGA was formed because the battery and EV industry had requested and been granted exemptions on graphite tariffs coming from China. This had an adverse impact on the industry, which is trying to build projects in the US (including some who were granted funding through IIJA and IRA). We were a driving force to ensure the exemptions were lifted, and they recently were.

In addition, the industry was similarly hit with unfair policy through the 30D Clean Vehicle Tax Credit, allowing OEMs to import Chinese graphite for the next two years and still gain access to the tax credit. NAGA has opposed this action, among other actions that deter investment for this critical mineral.

We believe a strong US and Canadian industry can help drive policy that will help the industry get off the ground and thrive.

At The Battery Show, what are you most looking forward to in terms of industry advancements or innovations?

I am a battery nerd. I want to see it all. I am particularly curious about a few key areas. First, how battery energy storage systems are being developed for grid, industrial, and defense applications. Second, how recycling technologies, especially the reprocessing of critical minerals, are being deployed globally. Lastly, I am eager to learn how our traceability services are being utilized by battery manufacturers to track the origins of their critical minerals and materials.

About Ben Steinberg

Ben Steinberg is an executive vice president and co-chair of the firm’s critical infrastructure group. In his current role he works with energy, transportation, defense, and environmental private sector clients and manages coalitions such as the Battery Materials and Technology Coalition, the North American Graphite Alliance, and the U.S. Battery Machine Builders. Prior to joining Venn, he spent nearly a decade as a key official at the U.S. Department of Energy (DOE) serving as – Chief of Staff for the Office of Energy Policy and Systems Analysis helping shepherd the Department’s Quadrennial Energy Review; as liaison between DOE and the Department of Defense building energy technology development partnerships; and, as an advisor on cyber preparedness, security, and emergency response. His tenure in government also included work at the White House Council on Environmental Quality on Federal agency energy efficiency and renewable energy initiatives. Ben received his bachelor’s degree in political science from the University of Wisconsin-Madison and his master’s degree in urban and environmental policy and planning from Tufts University.

This information has been sourced, reviewed and adapted from materials provided by The Battery Show.

For more information on this source, please visit The Battery Show.