Breaking the Bottleneck is a weekly manufacturing technology newsletter with perspectives, interviews, news, funding announcements, and a startup database. For a high-level market map on discrete and continuous manufacturing click the link here!
Content I Enjoyed This Week 🏭🗞️🔬
News:
Tesla and Toyota Battery Supply Chain Concerns [Supply Management]
A recent report by the Business and Human Rights Resource Centre (BHRRC) reveals that major carmakers Tesla and Toyota are using batteries linked to mines in Indonesia and the Philippines that have been associated with human rights violations. The supply chains for nickel, an essential component in electric vehicle (EV) batteries, are plagued by human rights abuses and environmental damage. The BHRRC is calling for greater transparency in supply chains to ensure companies and investors understand and take responsibility for these issues. The report highlights specific connections between nickel mines with poor human rights records and companies like Panasonic, Tesla, and Toyota. Concerns have been raised about the lack of consent from local communities, loss of food security, and environmental destruction caused by these mining operations. The report also identifies human rights and environmental concerns in Indonesia, where Chinese companies Zhejiang Huayou Cobalt (ZHC) and CNGR Advanced Materials have been linked to respiratory problems, deforestation, and water pollution. ZHC is accused of encroaching on agricultural and Indigenous land and targeting activists and Indigenous Peoples.
Ford Strikes Lithium Supply Deals With World’s Top Producers [Bloomberg]
Ford Motor Co. has announced new battery-material sourcing agreements with companies such as Albemarle Corp. and SQM, the world's largest lithium producers. These agreements are part of Ford's strategy to solidify its supply chain for a significant expansion in electric vehicle (EV) production. The deals were disclosed during Ford's investor day and are intended to support the company's goal of manufacturing 2 million EVs annually by 2026. The availability and cost of battery materials, including lithium, nickel, and cobalt, have been major concerns for automakers as they expand their electric vehicle lineups. Ford's agreements aim to secure a stable supply of these materials.
The agreements with Albemarle, SQM, Nemaska Lithium, EnergySource Minerals, and Compass Minerals aim to ensure a steady supply of battery-grade lithium and other materials. Ford's efforts to secure its mining capacity align with the Biden administration's push to reduce reliance on China by sourcing EV components and materials from North America and US free trade partners. By strengthening its supply chain, Ford aims to accelerate its ambitious EV production targets and address both cost and political considerations associated with battery material processing.
Chip Companies Seek Looser Limits on Federal Cash [WSJ]
Businesses in the semiconductor industry are urging the US government to ease conditions on aid programs and tax credits designed to revive the domestic semiconductor industry. The companies argue that proposed limits on the grants and tax credits will hinder their ability to compete with Chinese counterparts and develop new technologies. The companies are seeking to influence the implementation of the Chips and Science Act, which authorized tax credits and $53 billion in spending to bolster the US semiconductor industry. However, the grants come with restrictions that require companies taking US funding to limit expansion in China, which industry groups argue could harm their competitiveness and disrupt the semiconductor supply chain. Additionally, companies are pressuring the Treasury Department to broaden the eligibility definitions for the investment tax credit, seeking more inclusive criteria that would benefit a wider range of businesses involved in semiconductor manufacturing and equipment production. The final regulations issued by the Commerce and Treasury departments will shape the extent of federal involvement in the semiconductor industry and impact its growth and development.
Apple Strikes 5G Deal with Broadcom [Supply Chain Dive]
Apple has entered into a multibillion-dollar deal with U.S. chipmaker Broadcom to collaborate on developing 5G radio frequency components. As part of the agreement, Broadcom will manufacture FBAR filters for Apple, with production taking place at several U.S. manufacturing and technology hubs, including a major facility in Fort Collins, Colorado. The exact financial details of the deal were not disclosed. Apple emphasized that this partnership aligns with its commitment to invest $430 billion in the U.S. economy over five years, and it stated that it is on track to meet its goals and currently supports 2.7 million domestic jobs.
Why Vibration Control is Key to Semiconductor Manufacturing [Manufacturer]
This article highlights the importance of vibration control in semiconductor manufacturing and discusses Mason UK's involvement in providing effective vibration control at a major semiconductor manufacturing facility in Europe. The controlled conditions required for nanoscale manufacturing introduce vibration from mechanical and HVAC systems, which can disrupt precision processes. Vibration control plays a crucial role in ensuring the smooth operation of these facilities. Mason UK, with its expertise in vibration control, took on significant responsibility for the design of the system. The project involved a massive scale, requiring approximately 3,800 spring mounts, 1,600 acoustic hangers, and 400 pipe connectors. The logistics and installation of the equipment were challenging but were successfully managed with the assistance of local agents and regular site visits to gather the data that feed into real-time process control.
Onshape to Have Generative Design Capabilities [Engineering.com]
Though generative design has gained popularity with ChatGPT it still has not achieved much headway in the CAD industry. Jim Heppelmann, the CEO of PTC, acknowledges the potential of AI but urges caution and realistic expectations. PTC has implemented AI in various forms, such as AI-assisted chatbots and plans for AI in user interfaces. However, the complexity of generating designs compared is significant when compared to generating language responses and it is still hard today to produce parts that are optimized and manufacturable. With that being said Onshape is slowly starting to integrate early generative design capabilities with parts that can be traditionally manufactured—such as with a CNC.
Plant Announcements:
Enel Chooses Oklahoma for Solar Factory [Manufacturing Dive]
Hyundai and LG Plan $4.3 Billion Battery Plant in Georgia [NY Times]
Applied Materials Plans to Invest $4 Billion in R&D Facility [NY Times]
Research/Blogs:
Cybersecurity for the IoT [McKinsey]
While the IoT has expanded its presence across various industries, achieving a seamless IoT experience remains a challenge due to issues such as interoperability, cybersecurity, and complex installation processes. The interconnected nature of IoT devices presents elevated risks and vulnerabilities, underscoring the need for a foundation in digital trust and early-stage integration of cybersecurity. Traditional approaches to IoT security have proven insufficient, lacking multilayered security measures and falling behind in terms of testing and verification and L0 & L1 Security.
Cybersecurity risk poses a significant hurdle to widespread IoT adoption, with a survey revealing that it is the biggest inhibitor among respondents. The current approach to IoT cybersecurity treats it as a separate category rather than an integral part of the design and implementation process. The interconnectedness of IoT devices amplifies the risks, and organizations may hesitate to scale up their IoT deployments without effective cybersecurity measures in place. Addressing this challenge requires a comprehensive and holistic approach to cybersecurity, encompassing risk identification, attack protection, breach detection, response, and recovery.
Achieving a trusted level of IoT cybersecurity is crucial to unlocking the enormous value potential of the IoT market. In a baseline scenario, the IoT suppliers' market is projected to reach $500 billion by 2030. However, resolving cybersecurity concerns could lead to an average increase in IoT spending of 20 to 40 percent, amounting to $100 billion to $200 billion, and unlock an additional $25 billion to $50 billion in value for IoT suppliers. The manufacturing and industrial, healthcare, mobility and transportation, and smart city sectors are expected to benefit the most from improved cybersecurity practices. Despite the challenges, industry leaders are increasingly aware of the importance of IoT security and are actively exploring solutions, with top cloud providers and semiconductor players prioritizing security in their IoT architectures.
Podcasts/Video:
David Goldman - US-China Competition on EVs, AI, & Manufacturing
Agile Product Development and Additive Manufacturing w/ Jon Hirschtick
Twitter:
Another Humanoid Robot in the Workforce
Fire at Cleveland Manufacturing Facility
Manufacturing Deals
Ayar Labs - A a leader in silicon photonics for chip-to-chip connectivity using patented optical I/O approach to replace traditional electrical I/O
$155 million [Series C] - Led by Capital TEN and joined by VentureTech Alliance, Boardman Bay Capital Management, IAG Capital Partners, NVIDIA, and Tyche Partners
Infinite Uptime - An Indian predictive maintenance services and plant reliability solutions company
$18.83 million [Series B] - Led by Tiger Global and joined by Mayfield, GSR Ventures, VenturEast, and THK
Bench Sci- A company empowering scientists using AI and proprietary visual machine learning to build the world’s first evidence-backed map of disease biology
$70 million [Series D] - Led by Generation Investment Management and joined by Inovia Capital, TCV, Golden Ventures, and F-Prime Capital
ClearMotion - A company creating a proactive ride system that transforms the foundation of the ride and handling in cars
$32 million [Series B] - Led by NewView Capital, Acadia Woods, BAI Capital, NIO Capital, and Liberty Street
Figure - A company building general purpose humanoid robots
$70 million [Series A] - Led by Parkway VC and joined by Aliya Capital, Bold Ventures, Tamarack Global, FJ Labs, and Till Reuter.
Twirl - A a platform for data teams to deploy data pipelines and manage all infrastructure and scaling
$2.6 million [Series Seed] -Led by Creandum and joined by Cocoa Ventures
Volition - A company building a the largest marketplace of industrial components
$11 million [Series Seed] - co-led by Newark Venture Partners and Quiet Capital