US Battery Production Stalls as Natron Liquidates
▼ Summary
– Natron ceased operations after 12 years due to a cash crunch caused by delays in obtaining UL certification and investor reluctance to provide more funds.
– The company had $25 million in orders and planned a $1.4 billion North Carolina factory to create up to 1,000 jobs, focusing on stationary storage and data centers.
– Natron is being liquidated through an “assignment for the benefit of creditors” process, resulting in layoffs and asset sales.
– A sharp 90% drop in lithium carbonate prices over 2.5 years undercut sodium-ion batteries’ cost advantage, despite sodium’s abundance.
– Recent battery manufacturing failures outside Asia, including Natron, Powin, and Northvolt, highlight the need for sustained government support and mature supply chains to compete.
The recent shutdown of sodium-ion battery startup Natron underscores the persistent challenges facing domestic battery production in the United States. After twelve years of development, the company ceased operations this week, unable to secure the necessary UL certification to fulfill $25 million in existing orders from its Michigan facility. Investors withdrew further funding amid delays, triggering a cash shortage that left Natron with no viable path forward.
Natron’s primary stakeholder, Sherwood Partners, attempted to sell its interest but found no willing buyers. As a result, the firm is now liquidating through a process known as “assignment for the benefit of creditors,” an alternative to traditional bankruptcy that allows for a quicker and quieter asset sale. All but a handful of employees have been laid off, with a small team remaining to oversee the closure.
This outcome highlights a recurring theme in the Western battery sector: the enormous difficulty of scaling production without stable, long-term policy support. The journey from startup to full-scale gigafactory often spans a decade or more, far longer than typical business or investment cycles. Natron had announced plans just last year for a $1.4 billion factory in North Carolina, promising up to 1,000 new jobs and annual production capacity in the gigawatt-hour range. The company targeted stationary storage and data center markets, where the lower energy density of sodium-ion technology is less of a drawback.
Although sodium-ion batteries hold promise due to the abundance and low cost of sodium, their commercial viability has been undercut by a sharp decline in lithium prices. Over the past two and a half years, lithium carbonate prices have plummeted by nearly 90%, making it harder for alternative chemistries to compete on cost.
Natron is not an isolated case. Earlier this year, Oregon-based Powin filed for Chapter 11 bankruptcy after failing to secure a non-Chinese supplier of lithium-iron-phosphate cells. Similarly, Swedish manufacturer Northvolt, once seen as Europe’s best hope for a homegrown battery champion, also declared bankruptcy, reportedly burning through $100 million per month while struggling to achieve large-scale production. BMW canceled a $2 billion contract with Northvolt in mid-2024 due to delivery failures.
These setbacks illustrate a broader pattern: Asia’s decades-long head start in battery manufacturing has resulted in mature supply chains and deep technical expertise that are difficult to replicate elsewhere. For the U.S. or Europe to cultivate truly competitive domestic battery industries, consistent government support over many years will be essential. In the absence of such stability, partnerships with established Asian firms like Panasonic, LG Energy Solution, and SK Innovation may offer a more realistic pathway to success.
For now, the most feasible route to scaling battery production in the West still involves collaboration with, or reliance on, Asian manufacturing giants.
(Source: TechCrunch)
