Canada has overtaken China in BloombergNEF’s Global Lithium-ion battery supply chain ranking, an annual assessment that rates 30 countries on their potential to build a secure, reliable, and sustainable lithium-ion battery supply chain.
This marks the first time China has not claimed the number-one position. Canada’s consistent manufacturing advancements and strong ESG credentials have made it a leader in future battery supply chains. Its strong integration with the US automotive sector and commitment to policy at both provincial and federal levels contribute to its ranking in BNEF‘s ranking.
While China still has the strongest established supply chain, the increasing importance of sustainability across the lifecycle of lithium-ion batteries means the region must take a more proactive approach to tackle ESG issues to benefit its supply chain in the long term.
Overall, North America’s supply chain has shown strong policy commitment and implementation, with Canada and the US claiming two of the top three positions. Mexico, the only country to make progress in all supply chain categories, rose nine positions to 19th.
Mexico faces challenges in scaling up its domestic electric vehicle industry, but existing mining and automotive activities are good starting points. The US IRA has boosted Mexico’s EV and energy storage prospects, but the government must support the budding sector for sustainable improvements.
Kwasi Ampofo, BNEF’s Head of Metals and Mining, said:
“Global investment in the clean energy supply chain, including equipment factories and battery metals production, hit a new record at $135 billion this year. That said, trade relations will be an interesting factor to monitor in 2024, as foreign policy efforts in the US and EU continue to make it difficult for international companies to operate in major markets like China.”
African countries, including South Africa, Morocco, and the Democratic Republic of the Congo, have enhanced their upstream presence by expanding mining sectors and establishing new manufacturing facilities. To ensure local supply chains, these nations must continue maximizing value-added steps like metal refining and battery precursors.
South and Southeast Asia experienced significant improvement in supply chain growth, with India and Indonesia leading the way. Projects are set to continue, affecting global supply chains.
Ellie Gomes-Callus, Metals and Mining Associate, BloombergNEF, said:
“The rapid development of targeted supply chain roadmaps has helped emerging economies race through the ranks in our fourth edition. But it is vital for these nations to maintain momentum to realize their full potential.”
Contact Us
VUKA is the trusted media partner to key professionals, policy makers, suppliers and
manufacturers. We provide unparalleled opportunities for industry-wide connection.