Lie Shi, chief executive officer of AM Batteries, explains the many advantages of the dry battery electrode method of manufacturing batteries for electric vehicles.

A key component in batteries, the electrode is a type of metal foil that facilitates the flow of electric charge. The traditional means of production involves coating the electrode in a toxic chemical slurry which then must be removed through drying under high temperatures, requiring vast amounts of factory space and expenditures of energy.

The dry alternative applies electrode material to the metal foil in powder form, eliminating the need for toxic materials, huge ovens and the space required for drying. The result, according to AM Batteries, is 75% less energy consumption, 30% lower production costs, and a factory that’s one-fifth the size of traditional plants.

AM Batteries’ method is actually one of two dry battery electrode processes, which were developed in parallel. The other is being used by Tesla, but Shi says AM’s method is superior because it results in a more uniform application of the dry powder that replaces the toxic solvent required in traditional battery manufacturing.

Because it entails less factory space and fewer manufacturing complexities, and is more environmentally responsible, the dry battery electrode process lends itself to domestic production in the U.S., Shi says. In fact, AM Batteries is currently building production lines in Massachusetts. “We consider ourselves an American machine builder,” he says.

AM Batteries is past the startup phase, having accumulated some $74 million from investors over the last four years, and is currently scaling up development of the technology. Shi expects full production to get underway in 2027. “We are a major disruptive technology for the whole lithium battery supply chain,” he says.