The battery industry is rewiring itself. While China has dominated global battery production for years, the reality is that batteries aren't meant to travel the world. As energy storage units, they're neither safe nor cost-effective to ship internationally. Add tariffs and trade tensions into the mix, and the case for increased local production becomes undeniable.
As a result of these dynamics, a wave of new gigafactory announcements has emerged across Europe and North America. Battery manufacturers understand that being close to consumers isn't just convenient—it's essential. Local production enables manufacturers to respond promptly to customer needs and tailor products to meet regional requirements. This trend is expected to strengthen in the years ahead.
The Supplier Gap
Here's the challenge most people overlook: battery manufacturers are racing to go global, yet many of their suppliers aren't keeping pace. This creates a critical bottleneck in the supply chain.
Take polyacrylic acid (PAA), a water-soluble binder used in battery production, as a prime example. PAA has only 6% solid chemistry, meaning it's 94% water. The vast majority of producers are located exclusively in China. When a European or North American manufacturer wants to use this material, it requires shipping water around the world. Not only is this inefficient from a cost perspective, but it also has a negative impact on the carbon footprint.
The solution requires suppliers who can truly localize, not just their manufacturing, but also their technical capabilities. At Trinseo, we've built our infrastructure specifically for this reality. We operate nine binder plants worldwide—three in Asia, four in Europe and two in North America. Our global footprint enables us to deliver advanced chemistries, such as PAA and SBR, locally in Europe and North America, thereby reducing the cost and time associated with shipping water across oceans.
Technical Capabilities Matter
Local manufacturing is only part of the equation. Battery manufacturers need partners who can support them technically in each region. That's why Trinseo has established battery application centers in China and Germany, where our local technical service teams work directly with customers to develop customized solutions that meet their specific performance requirements. In addition, a 3rd battery application center is planned to be established in the USA.
We've also invested heavily in meeting automotive industry standards, including IATF 16949 certification. Battery materials have strict requirements on foreign metal particles because batteries are safety-critical components in daily-use vehicles. When materials play a role in components essential to driver and passenger safety, these standards form the foundation for building and sustaining trust with automotive manufacturers.
The question for battery manufacturers today is simple: can your supply chain keep pace with your production ambitions? As gigafactories multiply across Europe and North America, localized material suppliers with technical capabilities in each region will become essential partners. Local production of battery materials helps solve the cost, safety and efficiency challenges that global shipping creates. The companies building these partnerships now will define the next decade of battery innovation.
