Canada (Somehow) Ranks First In Global Battery Supply Chain Ranking
Canada has surpassed China to secure the top position in BloombergNEF’s (BNEF) annual Global Lithium-Ion Battery Supply Chain Ranking.
The assessment, now in its fourth edition, evaluates 30 countries based on their capacity to develop a secure, reliable, and sustainable lithium-ion battery supply chain, incorporating factors such as raw materials availability, battery manufacturing capabilities, downstream demand, ESG considerations, and innovation infrastructure.
The achievement has raised eyebrows in the industry, considering Canada doesn’t have significant cell and component manufacturing. According to BNEF, Canada’s rise to the top is attributed to its robust policy support at both provincial and federal levels, alongside its strategic integration with the US automotive sector.
“Canada’s consistent manufacturing and production advances, and strong ESG credentials, have helped it become a leader in forming the battery supply chains of the future,” BNEF wrote. “Strong integration with the US automotive sector means Canada is also a big winner of the ‘friendshoring’ ambitions of the Inflation Reduction Act. The country’s position in BNEF’s ranking is propelled by policy commitment at both the provincial and federal level.”
The report also highlights North America “excelling” in the supply chain landscape, with the US joining Canada in the top three. Mexico’s notable nine-place jump to 19th showcases its potential, driven by the US Inflation Reduction Act and its existing industrial base, though challenges remain in scaling up its domestic electric vehicle industry.
Global investments in the clean energy supply chain have reached a new high of $135 billion.
“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,” said Kwasi Ampofo, BNEF’s Head of Metals and Mining.
African nations, including South Africa, Morocco, and the Democratic Republic of the Congo, have shown improvements, capitalizing on their mineral wealth to expand mining and manufacturing sectors. Similarly, South and Southeast Asia, with India and Indonesia leading, have demonstrated significant supply chain growth, attributed to the rapid development of targeted supply chain roadmaps.
South Korea, a long-time leader in NMC lithium-ion battery chemistry expertise, is tied with Finland in top 5 after Germany.
Information for this story was found via BloombergNEF, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.