Thread by @I_am_the_Story

☀️Dominance of #China in Battery Manufacturing
#China continues to dominate Bloomberg NEF’s global #lithium-ion battery supply chain ranking, for the third time in a row, for both 2022 and its projection for 2027, thanks to continued support for the electric vehicle demand

https://twitter.com/ThePollLady/status/1623939786255011842

1. Bloomberg NEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
about.bnef.com/blog/chinas-ba…
#China #Lithium #USA #India #EU

2. With nearly 900 gigawatt-hours of manufacturing capacity or 77% of the global total, #China is home to six of the world’s 10 biggest battery makers.
#China #Lithium #USA #India #EU

3. Behind China’s battery dominance is its vertical integration across the rest of the EV supply chain, from mining the metals to producing the EVs. It’s also the largest EV market, accounting for 52% of global sales in 2021.
#China #Lithium #USA #India #EU

4. China currently hosts 75% of all battery cell manufacturing capacity and 90% of anode and electrolyte production.
#China #Lithium #USA #India #EU

5. The increasing prices of lithium has also led to higher investments in carbonate and hydroxide refinery facilities in the country, making it the leading refiner of battery metals globally.
#China #Lithium #USA #India #EU

6. Poland ranks second with less than one-tenth of China’s capacity. In addition, it hosts LG Energy Solution’s Wroclaw gigafactory, the largest of its kind in Europe and one of the largest in the world.
#China #Lithium #USA #India #EU

7. Overall, European countries (including non-EU members) made up just 14% of global battery manufacturing capacity in 2022.
#China #Lithium #USA #India #EU

8. Although it lives in China’s shadow when it comes to batteries, the U.S. is also among the world’s lithium-ion powerhouses. As of 2022, it had eight major operational battery factories, concentrated in the Midwest and the South.
#China #Lithium #USA #India #EU

9. China’s well-established advantage is set to continue through 2027, with 69% of the world’s battery manufacturing capacity.
#China #Lithium #USA #India #EU

10. Meanwhile, the U.S. is projected to increase its capacity by more than 10-fold in the next five years. EV tax credits in the Inflation Reduction Act are likely to incentivize battery manufacturing by rewarding EVs made with domestic materials.
#China #Lithium #USA #India #EU

11. Alongside Ford and General Motors, Asian companies including Toyota, SK Innovation, and LG Energy Solution have all announced investments in U.S. battery manufacturing in recent months.

12. Europe will host six of the projected top 10 countries for battery production in 2027. Europe’s current and future battery plants come from a mix of domestic and foreign firms, including Germany’s Volkswagen, China’s CATL, and South Korea’s SK Innovation.

13. Regardless of the growth in North America and Europe, China’s dominance is unmatched.
Battery manufacturing is just one piece of the puzzle, albeit a major one.

14. Most of the parts and metals that make up a battery—like battery-grade lithium, electrolytes, separators, cathodes, and anodes—are primarily made in China. Therefore, combating China’s dominance will be expensive.

15. According to Bloomberg, the U.S. and Europe will have to invest $87 billion and $102 billion, respectively, to meet domestic battery demand with fully local supply chains by 2030.
about.bnef.com/blog/chinas-ba…