The global electric vehicle (EV) battery race is intensifying, and the ability to scale next-generation manufacturing technologies is becoming a key differentiator in cost, performance, and energy efficiency. While conventional methods still dominate much of the US battery landscape, manufacturers are facing increasing pressure from high-efficiency, lower-cost approaches abroad — particularly in China, which currently leads in lithium-ion battery production and raw material processing.
Hieu Duong, Chief Manufacturing Officer, AM Batteries.
To understand how the US can best respond, we spoke with Hieu Duong, former Tesla Director of Dry Electrode and now Chief Manufacturing Officer at AM Batteries. Duong brings expertise in scaling battery technologies from R&D to high-volume production, and his current work focuses on advancing dry electrode manufacturing and novel electrolyte systems aimed at reshaping how EV batteries are built.
As part of these efforts, AM Batteries is collaborating with South 8 Technologies to explore the integration of dry battery electrodes with liquefied gas electrolytes. This combination is projected to reduce capital expenditures by over 30%, operational costs by more than 50%, energy consumption by 75%, and total production costs by 37%.
Rather than replicating legacy gigafactory models, the partnership seeks to define a new standard for battery manufacturing — one that’s more efficient, cost-effective, and aligned with long-term competitiveness.
In this Q&A, Duong shares his perspective on the key challenges facing US battery manufacturers, the potential of dry electrode and liquefied gas technologies, and what it will take to strengthen domestic leadership in energy storage. He also offers insights into the readiness of solid-state batteries, the importance of material compatibility, and what must change to meet the demands of next-generation EVs.
Here’s what he had to say…
What are the biggest challenges currently facing EV battery manufacturers and OEMs?
Hieu Duong (HD): Over the last 15 years, China has invested over $230B in battery manufacturing techniques and the production of next-generation batteries. The investment is paying off since the country is dominating the EV race. The country has also decreased the per kilogram cost of lithium-ion batteries from $32.9 per kilo in 2020 to $20.1 in 2024.
China dominates in lithium-ion battery manufacturing, as well as in battery materials. For example, China supplies two-thirds of the world’s lithium-ion battery electrolytes, while the United States manufactures just 2%.
Many American factories continue to rely on outdated, energy-intensive processes that drive up the high costs of EVs and battery systems. To remain globally competitive — particularly with China’s lower-cost production — manufacturers must leapfrog decades-old processes and streamline production.
For example, newer technologies such as dry electrode coating, which eliminates the need for solvents and drying ovens, significantly lowering energy use and emissions, and liquefied gas electrolytes, which enhance safety and performance under extreme temperature conditions.
Advancing beyond legacy methods will require bold investment in transformative manufacturing solutions capable of scaling efficiently and cost-effectively.
How are battery materials evolving, and what factors are driving these changes?
HD: The key to the current evolution cycle is the race to solid-state batteries. Whoever develops these next-generation batteries will have the power to set the price point for high-end EVs with extended range and increased acceleration.
A close-up of injector system used for 18650 cell electrolyte filling.
Rapid development in battery evolution has never been more critical, considering the expectation that China will come to market with the first solid-state batteries in 2027.
By overproducing lithium-ion batteries, China has lowered battery sales margins from slim to negative. Meanwhile, in the United States, producing a battery cell can be as much as 20% more expensive. The falling price of batteries should drive all manufacturers to find viable solutions that reduce costs.
What are dry battery electrodes, and how could they benefit EV batteries?
HD: The first stage of battery production, where the electrode is manufactured, requires a method to disperse the active battery materials, binder, and conductive carbons onto the electrode. Traditionally, manufacturers use slurry or wet coating, which requires about seven steps and significant floor space for the process’s necessary intensive drying and solvent recovery.
Dry coating, on the other hand, removes liquid from the equation, limiting the method to five steps. Reducing the complexity of this supply chain has resulted in lower operating costs, lower capex investment, and a smaller factory footprint. By advancing the manufacturing process, it’s possible to transfer savings directly to consumers, producing better and less expensive EVs with extended ranges.
Does dry electrode processing impact the electrochemical performance of EV batteries, such as energy density, charge/discharge rates, and cycle life?
HD: Dry electrode processing has demonstrated positive impacts on the electrochemical performance of EV batteries, including increased energy and power density, improved charge/discharge rates, and extended cycle life. The method allows for the fabrication of thick electrodes without the limitations typically associated with wet-coated processes, thereby enabling higher energy density.
Additionally, dry-coated electrodes have lower tortuosity compared to their wet-coated counterparts, which enhances ion transport and contributes to faster charge and discharge rates. This advantage becomes even more pronounced as electrodes are thickened, since wet-coated electrodes tend to become mechanically fragile and less uniform due to solvent evaporation, compromising overall performance and consistency.
Dry processing, by contrast, maintains structural integrity and supports consistent cycling performance over extended use.
How does the US battery supply chain benefit from a shift to dry electrode and liquefied gas electrolyte production?
HD: Material incompatibility has prevented dry electrode competitors from seamlessly integrating into the current US battery supply chain. However, there is a dry electrode process that uses commercially available materials across diverse chemistries, providing manufacturers with a path to streamline without disrupting current material ecosystems.
Unfortunately, many American battery manufacturers’ outdated slurry coating method hinders current supply chains. These methods require a fleet of drying tunnels the length of a football field, which takes up factory space, and toxic chemicals that pose employee safety and environmental risks. Introducing technologies like dry electrodes removes toxic solvents and eliminates the need for drying equipment, providing a safer work environment and reducing factory footprints.
The complete removal of the drying process and deeper cell penetration technology reduce the time it takes to build batteries. This dry mixing process is completed in minutes rather than hours of combining traditional slurry coatings.
Illustration of a lithium-ion battery production line adapted for dry electrode manufacturing and liquefied gas electrolyte filling—from electrode preparation through cell assembly, formation, and final testing.
Liquefied gas (LiGas) also brings the supply chain for electrolyte materials back to the US, leveraging the existing industrial gas infrastructure. Unlike liquid electrolytes, which are manufactured mainly in Asia, liquefied gas electrolytes are made in America using component gases already produced domestically in significant quantities for other applications, including aerosol propellants and refrigeration.
Using these materials in batteries, liquefied gas electrolytes open up a new market for US specialty gas producers, who can quickly scale their operations as demand grows.
Similarly, like the dry coating process, advanced LiGas gas technology can reduce manufacturing time for lithium-ion battery cell production. Unlike liquid electrolytes, which are added to the cell in stages over time, liquefied gas electrolyte uses a single-shot injection that fills the battery cell in minutes rather than hours.
Due to its low viscosity and pressurized nature, it rapidly wets the battery electrodes. It also accelerates the initial charging and discharging of the battery during the formation cycle. Formation, which typically takes eight to 24 hours, can be completed in as little as one to two hours when using this technology. Because filling and formation equipment are expensive, battery cells require less processing time, allowing more cells to be produced using the same machines and lowering overall production costs.
Thermal runaway remains a significant safety concern in EV battery packs. Does dry electrode manufacturing contribute to improved thermal stability, and how do novel electrolytes mitigate these risks?
HD: Even though dry electrode manufacturing removes flammable solvents, such as N-methyl pyrrolidine, from the process, lithium-ion batteries still contain other flammable materials. One of these materials is liquid electrolyte, which typically contains volatile organic solvents that provide substantial fuel during a thermal event.
In contrast, LiGas is a low-flammability mixture of gases that significantly reduces fire risk. Also, because LiGas is under pressure in the battery cell, it can be removed very quickly in the event of an abnormal condition.
In a standard “nail penetration” safety test in which a battery cell is punctured by a sharp metal rod, a LiGas cell significantly outperforms a conventional electrolyte cell. While a conventional cell burns for several minutes in this test, a LiGas cell expels its electrolyte within a few seconds, and any flames are quickly extinguished after one to two seconds.
What are the key technical challenges in scaling dry battery electrode manufacturing for EV applications?
A lab technician operating an electrolyte mixing station during battery material preparation.
HD: The technical challenges associated with scaling dry battery electrode manufacturing for EVs are similar to those faced by traditional wet coating processes — particularly in achieving high production throughput and consistent quality.
Recent developments in dry coating technology are pushing coating speeds above 60 meters per minute while maintaining coating uniformity within ±1% variation, positioning it to meet or exceed incumbent manufacturing standards.
What are the compatibility considerations when combining dry electrodes with liquefied gas electrolytes?
HD: There are no special compatibility considerations when combining dry electrodes with liquefied gas electrolytes. The capability of dry electrode manufacturing to produce thick and dense electrodes is synergistically advantageous when combined with the fast wetting and safety properties of liquefied gas electrolytes, resulting in an enhanced performance benefit such as higher energy density, higher power density, extreme temperature operation, and cell safety.
What improvements in battery cycle life and energy density can be expected with this combined approach?
HD: A proprietary dry electrode method has consistently demonstrated performance over 1,000 cycles. This precision engineering approach offers superior control over electrode properties, enabling a wide range of thicknesses without limitation. Thicker electrodes exhibit higher electrical conductivity, contributing to higher energy cells.
Liquefied gas electrolyte technology penetrates thick electrodes more effectively than conventional liquids, enabling approximately five to seven percent improvement in energy density through the doubling of cathode electrode thickness and increased power.
Additionally, batteries using this electrolyte show improved cycle life under certain conditions, including charging and discharging at sub-zero temperatures.
How does the transition to 800 V and higher voltage battery architectures impact thermal management and overall system efficiency?
HD: The dry electrode is expected to have no adverse impact in thermal management and overall system efficiency as we transition to high-voltage battery architectures. In fact, the lower tortuosity of the dry electrode reduces the cell’s internal resistance, which should ultimately reduce heat generation and improve overall system efficiency.
Beyond lithium-ion, do you see dry electrode technology playing a role in developing solid-state batteries, sodium-ion, or other emerging chemistries for EVs?
HD: Dry electrode technology addresses a critical gap in the battery manufacturing process by enabling the production of high-density electrodes required for next-generation batteries, including solid-state, sodium-ion, and other emerging chemistries.
Compatible with all major cathode chemistries (LFP, NMC, NCA, LCO), dry electrode manufacturing is considered closer to supporting solid-state battery development than traditional slurry coating methods.
What advancements in battery technology are the most critical for enabling the next generation of EVs in terms of range, charging speed, and efficiency?
HD: We need more investment and advancement in advanced electrolytes, including liquified gas and solid-state electrolytes. Wet coating won’t get us to an EV traveling 600 miles on a single charge. The solution lies in a higher energy density method capable of powering solid-state batteries. Batteries made with this outdated wet coating process will continue to fall short of the promise of an electrified future.
Filed Under: Batteries, FAQs