Recent geopolitical actions have led to one of the most critical energy supply chain disruptions ever seen. The closure of the Strait of Hormuz means a shortage of roughly 20 million barrels of oil and one-fifth of global LNG daily. 84% of this crude and 83% of LNG goes to Asian markets such as China, India, Japan, and South Korea. Fuel hubs such as Singapore and Malaysia are also affected, with downstream effects on Australia and New Zealand. Besides the immediate effects of increasing energy prices, second order effects include slowing growth in developing countries such as the Philippines, which has introduced 4-day work weeks to cut commuting and fuel use.
The only way to be insulated against these types of disruption is through cultivating energy independence. Governments and businesses have been working on this for years. In the US, the Inflation Reduction Act committed over $370 billion in clean energy incentives before being repealed by the current administration. Europe has its EU Critical Raw Materials Act to ensure a supply of raw materials for the energy transition. China has seen this as an imperative and has been called an ‘electrostate’ for its extensive build-out of renewable energy and command over the resources needed for electrification.
The world deployed 380GW of solar capacity in the first half of 2025, 64% higher than the same period in 2024. However, renewable energy is only one part of the solution. Solar provides energy in the day, while turbines only produce energy when the wind blows. It is apparent that renewables introduce intermittency when stability is a paramount requirement. Battery energy storage systems effectively decouple production from supply and make a clean, independent energy source reliable. This is why battery storage is a key component of any power grid.
Yet, batteries introduce a new layer of geopolitical risk. The critical minerals that power lithium batteries — cobalt, nickel, lithium — are among the most geographically concentrated raw materials on earth. Even if you manage to onshore or reshore manufacturing, your supply chain is still at risk if you still import any of these materials. Recycling is where that contradiction gets resolved. Lithium Iron Phosphate (LFP) batteries are being used in 90% of battery energy storage systems worldwide because of their reliability, cost, and safety. However, without an economically viable solution, recycling LFP batteries specifically remains challenging. With recycling sitting at both the start and the end of the supply chain, it cannot afford to be. Energy independence and supply chain sovereignty converge with the right recycling solution.
This is the challenge that NEU Battery Materials was built to solve. The next decade will see unprecedented volumes of LFP batteries entering the market, and our technology ensures that we are able to target them specifically. With LFP being the world’s fastest growing battery type today, the scale of this challenge is huge. Our clean recycling solution will be tomorrow’s industrial capability. Those who desire being at the forefront of energy independence, material security, and material science, reach out and secure the future with us today.
