Tim De Chant is a former senior climate reporter at TechCrunch. He teaches in MIT’s Graduate Program in Science Writing, and he most recently covered the liquidation of Natron Energy. This announcement highlights major challenges ahead for the U.S. battery manufacturing sector. Unfortunately, Natron has now officially shuttered after 12 years trying to commercialize its technology. That’s because the company is abandoning a $1.8 billion sodium-ion battery factory project in North Carolina that would have produced gigawatt-hours of battery cells annually and generated approximately 1,000 jobs.
Natron recently completed an expansion of their new facility in North Carolina. This facility was intended to manufacture sodium-ion batteries, helping to lead the way in the transition to more sustainable energy technologies. The new capital was on top of $25 million in orders the company had already booked for its Brighton, Mich., factory. The firm reached a critical snag when it was unable to fulfill these orders. This failure happened due to the lack of UL certification, an important designation for safety and compliance in manufacturing.
The situation escalated as Natron entered into a process called “assignment for the benefit of creditors,” which allows a company to liquidate its assets quickly while avoiding the lengthy court proceedings typical of bankruptcy filings. In practice, this approach could rapidly result in a purchase of Natron’s assets. It exposes the harsh reality many entrepreneurs face as they make their way in the cutthroat world of battery innovation.
Tim De Chant’s thoughts on this issue are shaped by his academic training and deep career in climate journalism. He received his PhD in environmental science, policy, and management from the University of California, Berkeley. Thomas has an AB degree in environmental studies, English, and biology from St. Olaf College. In 2018, he was awarded a prestigious Knight Science Journalism Fellowship at MIT. While there, he focused on climate technologies and researched sustainable business models for journalism.
The challenges facing Natron are not isolated. Interestingly enough, another big name in the battery space— Powin —recently filed for bankruptcy. Production and development woes. This case further illustrates the difficulties companies are finding with material sourcing. In June, Powin filed for Chapter 11 bankruptcy protection. They weren’t able to identify a non-Chinese supplier — lithium-iron-phosphate cells — that are essential manufacturing building blocks for producing batteries.
The Natron liquidation raises some important questions. Can we really take the next step in the U.S. and create a domestic, self-sustaining battery manufacturing ecosystem? The company’s failure to receive certification and deliver on orders highlights the difficulty of making the leap from development to production. Companies such as Natron and Powin are going through some hard times. Yet, as they continue to face these challenges, the future of U.S. battery manufacturing appears grim.
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