China continues to dominate lithium battery supply chains but policy support gives US new hope

Excerpt from energy-storage.news

China has once again been ranked top for involvement in the global lithium-ion battery supply chain by BloombergNEF, but for the first time the US has come in second amid a policy rush to support the domestic industry.

BloombergNEF published its annual ‘Global lithium-ion battery supply chain ranking’ report for the first time in 2020, finding China to be the unsurprising leader, with Japan and then South Korea in second and third place. The US was in sixth place last year.

The second edition of the report has just been published and this year the analysis firm finds that continued investment as well as strong local and international demand keeps China at the top of the tree not only in 2021 but also in projections out to 2026.

More than 80% of all battery cell manufacturing is in China and within five years production in the country could reach 2TWh, BloombergNEF said. However, governments around the world are recognising the strategic importance of having battery industry supply chains, or key elements of supply chains within their borders.