Andrew Baglino on supply chain
From Critical Capital - The clean energy transition has a hardware problem, ft. Drew Baglino · · Crux Climate
“The medium voltage transformer on the current trajectory is going to consume almost half of all grain-oriented electric steel in the world. Just that one medium voltage transformer that's used in solar batteries, data centers, and everything else. And if we just remove all of that by extending the power electronics functionality all the way to medium voltage, now that entire grain-oriented electric steel supply base is freed up to serve all the other electrification needs that grain-oriented electric steel can can serve.”
On , Andrew Baglino, Former SVP of Powertrain & Energy Engineering at Tesla, spoke about supply chain 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.