Carlstrom has formed a new company, Statevolt, that will build the 54-gigawatt-hours (GWh) facility, serving around 650,000 electric vehicles a year at full capacity.
To launch the new facility, Statevolt has also signed a Letter of Intent (LOI) with Controlled Thermal Resources (CTR). Under the terms of the LOI, CTR will deliver sustainable, locally produced lithium and geothermal power, from the company’s to-be constructed Hell’s Kitchen Lithium and Power development.
Statevolt is still “undertaking due diligence” on the exact location of the facility, which should be “one of the largest” battery factories in North America upon completion, it said.
Statevolt’s planned partnership with CTR brings a new, ‘hyper-local’ sustainable business model for lithium-ion battery development in the U.S. The arrangement is one of the first of its kind in the world and will see the business source its key feedstock, lithium, and its power from local resources, in order to minimize the environmental impact of production and build a more sustainable and secure supply chain. Simultaneously it will help facilitate the development of a micro-industry in the area, delivering up to 2,500 direct jobs for Imperial Valley and the region more widely.
The LOI between Statevolt and CTR is built on the two companies’ shared commitment to support the energy transition in California and the U.S. Global Lithium demand for EVs and storage which is forecast to reach 383 killotones by 2030. Following the Biden Administration’s target to ensure that half of automotive sales are EVs by 2030, the rapid development of batteries and supply chain resilience is crucial to meet consumer demand, in the near-to-medium term.
Lars Carlstrom, founder, of Statevolt, said: “The development of lithium-ion batteries is crucial for the U.S. to meet its goals to transition to Net Zero. Statevolt is proud to begin its journey to develop U.S. expertise and production of lithium-ion batteries, as we look to serve this critical market. Today, we face a significant shortage in the amount of lithium that is required to meet the demand for electric vehicles. We are pioneering a new, hyper-local business model, which prioritises sustainability and resilience in the supply chain to solve this issue. More importantly, we believe this model will offer Statevolt a significant advantage in producing lithium-ion batteries at scale, to meet booming consumer demand and create good-paying, highly skilled jobs. We are pleased to be collaborating with CTR and its industry-leading, and highly-specialized approach to sustainable lithium production and development. Together, through the construction and development of Statevolt, we will support the nation’s energy transition while retaining a keen focus on low-cost, sustainable battery manufacture.”
Rod Colwell, CEO of Controlled Thermal Resources, said: “CTR is absolutely delighted to further our relationship with Statevolt. We applaud Lars and his team for taking a proactive approach to ensure the company’s future lithium supply, while also consciously seeking out the cleanest lithium and power available for Statevolt’s first U.S. Gigafactory. The extraordinary growth in electric vehicle adoption and the emerging demand for energy storage systems to provide clean power, highlights the urgent need to develop a strong and secure battery supply chain in the United States. CTR continues to develop its significant resource in response to this unprecendented demand, and we look forward to collaborating with Statevolt as we accelerate these efforts.”