Strategic Supply Chain Resilience in EV Battery Materials: How CHASM and Ingevity's CNT Licensing Deal Positions Them at the Forefront of the North American EV Transition

The global transition to electric vehicles (EVs) is accelerating, but its success hinges on securing resilient supply chains for advanced battery materials. In 2025, a pivotal development emerged as Ingevity, a leader in sustainable materials, inked a licensing agreement with CHASM, a pioneer in carbon nanotube (CNT) technology, to leverage CHASM's patented NTeC-E CNT conductive additives for battery applications. This partnership not only underscores the growing importance of CNTs in enhancing battery performance but also highlights a strategic shift toward localized production to mitigate global supply chain risks. For investors, the deal signals a critical inflection point in the North American EV ecosystem.

A Strategic Alliance for Secure, High-Performance Battery Materials

The CHASM-Ingevity licensing agreement grants Ingevity access to CHASM's NTeC-E CNT technology, a scalable solution designed to improve the conductivity and energy density of lithium-ion batteries. By integrating CNTs into battery electrodes, NTeC-E reduces resistance and enhances charge-discharge efficiency, addressing key limitations in current EV battery designs. This collaboration aligns with Ingevity's broader strategy to dominate the market for conductive additives, a segment projected to grow exponentially as automakers and gigafactories prioritize next-generation battery chemistries.

The deal's strategic implications extend beyond technical innovation. By securing a domestic source of CNTs, Ingevity and CHASM are directly addressing vulnerabilities in the global supply chain for critical battery materials. Traditional supply chains for lithium, cobalt, and nickel are heavily concentrated in regions prone to geopolitical and logistical disruptions. In contrast, localized CNT production in North America-supported by CHASM's 50 MTA pilot reactor and plans for a 1500 MTA commercial reactor by 2024-offers a more stable and secure alternative.

Technical Advantages of NTeC-E CNTs: Enabling Next-Generation Batteries

CHASM's NTeC-E CNTs are engineered to deliver exceptional performance in EV batteries. As a multi-wall CNT product, NTeC-E combines high electrical conductivity with structural durability, enabling batteries to achieve faster charging times and longer lifespans. The material's versatility-available in powder, aqueous dispersion, and NMP dispersion formats-allows for seamless integration into existing battery manufacturing processes.

Moreover, CHASM's scalable production platform ensures that CNTs can be manufactured at gigafactory-compatible volumes without compromising quality. This scalability is critical for meeting the surging demand from EV manufacturers, who require consistent, high-purity materials to maintain performance standards. By 2025, CHASM's production capacity is expected to significantly lower the cost barrier for CNT adoption, making the technology accessible to a broader range of battery producers.

Localized Production as a Blueprint for Supply Chain Resilience

The CHASM-Ingevity partnership exemplifies a broader industry trend: the regionalization of advanced material production to reduce reliance on global supply chains. From 2023 to 2025, North American companies have increasingly prioritized localized manufacturing to insulate against geopolitical risks and logistical bottlenecks. This shift mirrors strategies in sectors like telecommunications, where firms such as Ceragon Networks have leveraged regional production to secure market share amid global uncertainties.

For the EV battery industry, localized CNT production offers dual benefits. First, it minimizes exposure to international trade disputes and transportation delays. Second, it aligns with U.S. and European policy initiatives aimed at building domestic capabilities for critical technologies. By anchoring CNT production in North America, CHASM and Ingevity are not only securing their own supply chains but also contributing to a strategic national goal: reducing dependence on foreign sources for energy transition materials.

Investment Implications: Positioning for Long-Term Growth

For investors, the CHASM-Ingevity deal represents a confluence of technological innovation and strategic foresight. Ingevity's licensing of NTeC-E positions it as a key supplier for EV battery manufacturers seeking to differentiate their products through advanced materials. Meanwhile, CHASM's scalable production platform ensures that CNTs can meet the demands of a rapidly expanding market.

The partnership also aligns with macroeconomic tailwinds. As governments in North America and Europe subsidize EV adoption and battery manufacturing, companies that can deliver secure, high-performance materials will gain a competitive edge. With CNTs poised to become a standard additive in next-generation batteries, CHASM and Ingevity are well-positioned to capture significant market share in the coming decade.