Andrew Baglino on manufacturing scale
From Critical Capital - The clean energy transition has a hardware problem, ft. Drew Baglino · · Crux Climate
“I honestly think the cash flow cycle is one of the biggest inhibitors to the ramp rate, ultimately. And we will do everything we can with the with our suppliers and our customers to sort of manage that cash flow cycle, um but there are unmanageables in there, you know, project delays, uh we have our own Let's Let's say we have a supplier issue, and you know, at commissioning we're having a problem. Um and then there's straight-up like the payment terms that people can accept on all sides. You know, it will it can be very much a a limit to growth.”
On , Andrew Baglino, Former SVP of Powertrain & Energy Engineering at Tesla, spoke about manufacturing scale during Critical Capital - The clean energy transition has a hardware problem, ft. Drew Baglino on Crux Climate.
About Andrew Baglino
Andrew Baglino, founder and CEO of Heron Power and former Tesla executive, has been discussing the challenges of modernizing the U.S. electrical grid and critical mineral supply chains. In a May 2026 appearance on the podcast Critical Capital, Baglino argued that the aging hardware of the electric grid, such as transformers and cables, is a major bottleneck for the clean energy transition, independent of the source of generation. He said that the electricity sector needs to grow by 300% to 500% to support a sustainable energy economy, and described solid-state transformers as a technology that could free up supply chains, such as grain-oriented electric steel, for other electrification needs. Baglino also said that cash flow cycles and project delays are significant inhibitors to the ramp rate of new energy infrastructure. Speaking on a separate a16z podcast in May 2026, Baglino stated that the U.S. is "50 years behind on critical mineral supply" and "too slow at designing, building, and ramping up new minerals capacity." He advocated for durable industrial policy and a "federal highway trust fund for the grid" to coordinate infrastructure buildout and co-located supply chains. Baglino also expressed support for leveraging U.S.-based silicon carbide technology for domestic manufacturing, arguing that failing to do so would cede the benefits of the technology to other countries.