U.S. battery materials company Anthro Energy has broken ground on an electrolyte production plant in Louisville, Kentucky, with annual capacity of 25 GWh. The company aims to supply materials for more than 300,000 electric vehicles and build a U.S. battery materials supply chain that reduces reliance on China. The plant targets a 2028 start-up. Federal and state support includes U.S. Department of Energy funding and tax credits, as well as Kentucky incentives tied to 110 permanent jobs.

The battery industry is moving toward a division of labour similar to semiconductors, with Western companies focusing on next-generation chemistry design and intellectual property while Asian manufacturers handle mass production, industry officials say. The shift reflects limits on building and running gigafactories, weaker manufacturing competitiveness in Europe and the United States, and U.S. rules requiring the exclusion of certain China-linked supply chains. A wider range of battery chemistries and growing small-lot demand are also accelerating outsourcing.