EV battery parts supplier Addionics plans $400 million copper foil investment in U.S.

Israeli battery components supplier Addionics said Monday it will spend $400 million to build U.S. factories to help customers boost domestic sourcing of crucial components for electric vehicle batteries.

The company said it has a three-phase plan for a U.S. manufacturing footprint, with its initial plant expected to start production in 2027 and others expected to open by 2032. Site selection for the first factory is in its final stages, according to a news release.

The company's investment illustrates the changes the U.S. automotive landscape is undergoing as automakers pull together new EV supply chains. Addionics' plants will manufacture a component that is relatively new to U.S. parts making: 3D copper foil. The new plants will produce tens of thousands of tons of the copper foil a year, supporting 90 gigawatt hours of battery capacity annually.

Addionics said the U.S. market for copper foil production is "underserved" as high-performance EV battery production ramps up. It also said its initial factory will be the world's first "gigafactory-grade" facility for 3D copper foil production.

"The ability to manufacture cost-effective, high-performance batteries at scale is the biggest challenge facing the EV industry today," Addionics CEO Moshiel Biton said.

"The new U.S. facility will be our largest manufacturing facility to date and will be able to support and accelerate the local production of the next generation of batteries that are powering the EV and electrified future."

Addionics said its copper foil product can help boost a battery's performance and deliver faster charging times. Reducing charging times and increasing range are priorities for automakers and battery manufacturers as they boost EV sales. A key reason growth has slowed for the segment is that battery range anxiety persists among many consumers.

Addionics' plans are part of a wave of investments throughout the U.S. battery supply chain as companies scramble to boost domestic sourcing of components. Battery makers have committed to massive manufacturing projects to support EV assembly, as have companies that produce graphite for use in battery anodes, among others.

The investments are being spurred in part by tax breaks and subsidies available under the Inflation Reduction Act, which incentivizes automakers to source content in North America in order for vehicles to qualify for credits.