Sylvatex’s Guide to Manufacturing Partnerships: Lessons from Scaling Deep Tech
Scaling manufacturing for deep tech isn’t just about increasing production – it’s about building the right partnerships while maintaining control of your technology. In a recent episode of Category Visionaries, Virginia Klausmeier shared Sylvatex’s strategy for managing this delicate balance in the EV battery materials market.
The Early Partnership Strategy
Sylvatex’s approach to manufacturing partnerships began with careful selection and controlled growth. “We worked with very targeted collaborative partners and our supply wasn’t that significant,” Virginia explains. This deliberate start allowed them to validate their technology and production processes without overextending.
Managing Market Acceleration
The challenge came when market demand accelerated beyond their initial production capacity. Virginia describes the situation: “Scale right now is our biggest challenge, how to make more of the right stuff faster in a way that is going to be healthy for us as an organization and also capital efficient and also derisking the technology.”
This scaling pressure is particularly acute given their target market. “We are targeting making the material that’s the largest bottleneck for industry, which is cathode material,” Virginia notes. “Our target market is looking at the cathode material for the electric vehicle markets, which is targeted to be about 250,000,000,000 by 2030.”
Geographical Strategy
Rather than pursuing global partnerships immediately, Sylvatex focused on strategic locations. Virginia explains their reasoning: “We’re targeting domestic for obvious reasons. We’re proximity located well, but also the US market and the North American market is growing very rapidly. And there’s a big push to domestic supply.”
This geographic focus aligns with broader industry trends. As Virginia notes, “You can’t actually get to the end goals at all with existing techniques. Right. So it’s actually impossible. So we offer a very important, viable, but also best in class solution.”
Balancing Growth and Control
The company’s approach to scaling reflects a careful balance between growth and control. Looking ahead, Virginia outlines their vision: “We will be at commercial scale. We’ll be supplying cathode material that’s likely going to come from domestic recycled supply chains. And we’re going to be supplying cathode material to probably one of the most progressive, successful domestic electric vehicle, automotive OEMs.”
Key Lessons for Deep Tech Founders
Sylvatex’s experience offers several insights for founders navigating manufacturing partnerships:
- Start with focused partnerships to validate technology and processes
- Choose partners based on geographic and strategic alignment
- Build infrastructure ahead of market demand
- Maintain control of core technology while scaling production
- Consider supply chain sustainability in partner selection
The story highlights how manufacturing partnerships in deep tech require different strategies than typical vendor relationships. Success depends not just on production capacity, but on alignment with long-term technology and market goals.
For founders facing similar challenges, Virginia’s experience suggests focusing first on finding the right partners rather than just pursuing maximum scale. The goal is building a sustainable manufacturing ecosystem that can grow with market demand while maintaining product quality and technical innovation.
As the clean energy transition accelerates, this balanced approach to manufacturing partnerships becomes increasingly crucial. It’s not just about making more – it’s about making more while maintaining the technological edge that makes your solution valuable in the first place.
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