CAlifornia-made Sustainable and Cost-effective Activated Dry Electrode (CASCADE)
LICAP Technologies aims to demonstrate a sustainable, cost effective and scalable solution to battery electrodes manufacturing using Activated Dry ElectrodeTM technology for Li-Ion batteries.
LiCAP Technologies Inc.
Recipient
Sacramento, CA
Recipient Location
6th
Senate District
7th
Assembly District
$1,105,441
Amount Spent
Active
Project Status
Project Update
In 2024, LiCAP officially commenced the assembly of its LRIP cathode film production line. The base frames and electrical sub-assemblies have been successfully installed, marking a significant milestone in the project's progress. In parallel, LiCAP’s R&D team has confirmed the electrochemical performance of both cell designs tailored for Electric Vehicle (EV) and Energy Storage System (ESS) applications, ensuring their reliability and efficiency in real-world conditions. Additionally, a comprehensive cost analysis has validated substantial savings achieved by LiCAP’s dry battery electrode manufacturing process compared to traditional wet electrode methods.
By implementing LiCAP’s advanced dry battery electrode technology, the company will significantly reduce production costs, lowering the battery pack cost from around $84/kWh to around $67/kWh. This breakthrough not only enhances cost efficiency but also streamlines manufacturing by eliminating solvent usage, reducing energy consumption, and minimizing environmental impact.
In 2025, LiCAP finalized the construction and installation of the LRIP film mill. The team initiated the commissioning process and conducted a comprehensive factory acceptance test to verify that the film mill meets all performance and quality requirements. In parallel, the construction and rigorous testing of prototype cells took place. These milestones represent a significant step toward scaling LiCAP’s LRIP cathode technology and reinforce our commitment to high-performance energy storage solutions.
In 2026, following the commissioning of the fully integrated production line, LiCAP will optimize operations and manufacture cells that meet or exceed industry benchmarks for performance and cost. After completing three consecutive months of production, LiCAP will perform a techno-economic assessment and a case study. These results will be documented and submitted to the California Energy Commission (CEC) in 2026 and 2027.
The Issue
Current large-scale battery manufacturing relies on conventional electrode production methods that are not only capital-intensive and energy-demanding but also pose significant environmental, public health, and safety concerns. The predominant approach, known as "wet coating," involves mixing active materials with a binder and dissolving them in N-Methyl-2-pyrrolidone (NMP), a highly toxic, volatile, and explosive solvent. This slurry is then coated to a metallic current collector foil before undergoing a complex and energy-intensive drying process.
To prevent harmful emissions, the NMP must be carefully removed from the electrodes and captured for reuse, requiring extensive solvent recovery systems. This step alone significantly increases operational costs and complexity. Moreover, the drying process takes place in large-scale industrial ovens that consume vast amounts of energy—accounting for up to 47% of the total energy consumption in a Gigafactory. The reliance on such inefficient and hazardous processes underscores the urgent need for more sustainable, cost-effective, and scalable alternatives in battery manufacturing.
Project Innovation
LiCAP Technologies Inc. is set to establish a Low-Rate Initial Production (LRIP) pilot line in Sacramento, CA, to advance battery electrode manufacturing using its groundbreaking Activated Dry Electrode (ADE) process. This state-of-the-art facility will serve as a critical step toward scaling up LiCAP’s patented technology, which offers substantial advantages over conventional "wet coating" methods.
Unlike traditional “wet coating" electrode production, which relies on toxic solvents and energy-intensive drying ovens, LiCAP’s Activated Dry Electrode process eliminates the need for hazardous chemicals, significantly reducing environmental impact. The process delivers lower energy consumption, a reduced carbon footprint, a smaller manufacturing footprint, and improved battery performance, all while enhancing cost efficiency.
The Sacramento pilot line will have an annual production capacity of 100 MWh, providing a tangible demonstration of both the technical and economic feasibility of sustainable lithium-ion battery electrode manufacturing. Key benefits of this breakthrough technology include a 75% increase in energy efficiency, a reduction in CO2 emissions, and a manufacturing footprint reduction of 38%.
By deploying this pilot line, LiCAP aims to accelerate the adoption of its dry electrode technology, paving the way for large-scale commercialization and a more sustainable future for lithium-ion battery production.
Project Goals
Project Benefits
LiCAP Technologies, Inc. has pioneered an innovative Activated Dry Electrode (ADE) manufacturing platform, designed to revolutionize the battery industry by replacing the unsustainable and costly wet coating process. With a strong commitment to advancing clean energy solutions and strengthening California’s battery manufacturing ecosystem, LiCAP’s technology introduces a more efficient, cost-effective, and environmentally sustainable approach to electrode production.
By eliminating the need for toxic solvents—such as N-Methyl-2-pyrrolidone (NMP), a commonly used but hazardous component in traditional wet-coating processes, LiCAP’s ADE platform significantly reduces workplace safety risks, minimizes hazardous waste generation, and enhances the environmental performance of Gigafactories. This breakthrough aligns with global sustainability goals and regulatory efforts to lower the carbon footprint of battery manufacturing.
Beyond its environmental and safety advantages, LiCAP’s ADE technology is engineered to reduce battery cell production costs, increase manufacturing throughput, and improve energy efficiency throughout the electrode fabrication process. By streamlining production and eliminating solvent evaporation and drying steps, ADE enables higher production scalability while consuming less energy than conventional methods. These improvements make California’s battery industry more competitive by lowering operational costs and positioning the state as a leader in next-generation battery innovation.
Affordability
Cathode active material is the single most expensive portion of a lithium-ion battery, and the battery is the single most expensive portion of an electric vehicle. Reducing the cost of producing cathode active material can have a direct impact on the reduction of electrified end-uses such as EVs.
Key Project Members
Linda Zhong
Martin Zea
Eric Fodge
Timothy Smith
Dmitry Zamoshnikov
Andrew Spencer
Spencer Chase
Match Partners
LiCAP Technologies Inc.
