The referenced article was published by the Sacramento Bee on April 28, 2025 by Annika Merrilees.
A battery manufacturing startup began production at a factory in Metro Air Park this month, helmed by a CEO with aspirations of reshoring the industry to the U.S. The site has around 30 employees now, projected to grow to 60 or 70, and the company plans to establish a site in West Virginia that would eventually employ around 250.
But Sanjiv Malhotra, the CEO of Sparkz, believes the industry should grow far larger here. His company makes materials and cells for batteries, and eventually plans to make complete battery packs used in data centers, electric vehicles, and commercial, off-road vehicles like forklifts and farm equipment. Headquartered in Livermore, he said he searched far and wide in California for a manufacturing site. No one bested the Sacramento Municipal Utility District, or SMUD, for cost of power, he said, a key advantage for an energy-intensive factory. “SMUD has the lowest power rate in the state. You have the relationship capital — different customers are here. SMUD as a potential customer… and you have financial capital,” he said during an interview at the Sacramento County factory this week. “We have a very good talent pool, from UC Davis to Sac State, to the community colleges.”
Malhotra acknowledged that the Bay Area outweighs Sacramento in venture capital firms — a common concern among young businesses here. But companies like Sparkz are picking the Central Valley, and he believes the dollars will follow. “I think Silicon Valley was not created by venture capital. It was created by companies,” he said.
He said his sources its key materials — lithium, iron and phosphate — from within the U.S. Lithium comes from Nevada and North Carolina. Iron comes from North Dakota and Minnesota. Phosphate, he said, is plentiful in Florida. Over the past few months, Malhotra has come out publicly in favor of President Donald Trump’s tariff policies, arguing that the levies are necessary to incentivize domestic manufacturing. The majority of U.S. batteries are imported from China. As other companies forecast price hikes and delay investments, waylaid by uncertainty around tariffs, Malhotra said Sparkz is poised to benefit. “I have two views on this. They need not be around forever. And secondly, tariffs need not be around for—” he paused, and gestured to a pair of glasses on the table in front of him. “This kind of stuff. But for critical technologies, critical equipment, etc., yes, tariffs need to be there to basically ensure that the manufacturing of those critical technologies is done here.”
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