The world has an increasing need for lithium-ion batteries, especially with many legislators, world leaders and consumers getting more interested in electric vehicles (EVs). The emerging EV push is happening along with a healthy demand for smartphones, laptops and other popular goods, further increasing the need to scale up battery production. How do some of the world’s countries factor into the global battery supply chain?
United States
The United States is rapidly building up its battery investments, resulting in the country progressively gaining momentum with its dominance. A 2024 analysis predicts the nation’s lithium demand for light-duty battery-electric vehicles will jump 67 percent by 2032. Additionally, the data suggested the country would need approximately 340,000 metric tons per annum by that year to address the expected demand.
Another takeaway was that by 2032, the available supply should far exceed the projected demand. A potential reason identified in the report was that the United States is working on more than 100 lithium mining and refining projects.
Despite these positive takes, the picture is not wholly rosy. President Joe Biden has an ambitious plan to strengthen the United States’ battery supply chain. However, it has yet to come to fruition, mainly due to manufacturers’ struggles with getting the necessary raw materials.
Canada
Canada is the Western Hemisphere’s only country with an end-to-end electric vehicle supply chain. It’s also fourth-ranked globally as a leader in raw material capacities. Moreover, Canada had 116,802 people working in the EV supply chain as of 2022, suggesting it’s well-equipped to cope with rising demand.
In a 2024 ranking of global lithium-ion supply chains, Canada took the top spot, beating China for the first time on that list. Analysts said the country’s significant advances in manufacturing and production helped it secure that ranking.
China
Many people initially overlook the distances many batteries travel to reach their destinations after production. They must undergo stringent testing to ensure supply chain partners can safely transport them. These examinations include tests related to temperature, shocks, impacts, vibration and more. Plus, even once a battery passes these tests, a change associated with 0.1 grams or over 20 percent by mass — whichever is greater — requires retesting.
China’s dominance in the global battery supply chain highlights the importance of creating and maintaining effective supply chains to move these in-demand goods by sea, air and land, bringing them from Chinese facilities to the world. Six of the world’s top 10 EV manufacturers have headquarters in the country.
Norway
European Union countries have set targets to reduce vehicle emissions. Since electric vehicles have manufacturing-related emissions but no road-related ones, the lithium-ion batteries powering them are critical to reaching those goals. Norway is the EU country currently leading in new EV registrations, with battery-electric cars comprising the majority.
In 2022, a Canadian lithium-ion battery recycler made a joint agreement with two Norwegian companies to increase battery recycling in the Scandinavian country. This development will increase Norway’s capacity to collect end-of-life batteries and return them to the supply chain after appropriate processing.
However, one recent piece of news from the other end of the spectrum made headlines when a Norwegian battery startup cut costs associated with a facility that would have been Norway’s first for lithium-ion production. Even so, if Norwegian consumers maintain or increase their interest in purchasing EVs, it makes sense that other companies would investigate production opportunities in the country sooner rather than later.
A broader glimpse
In addition to the country-specific breakdowns, people in the electronics manufacturing industry should stay abreast of larger trends from a regional perspective and over longer spans than the above analyses covered.
For example, the International Energy Agency coverage showed China accounted for the biggest share of regional battery demand from 2016 to 2022. Another takeaway was the world has ramped up its lithium production by 180 percent since 2017. Even so, demand outpaced supply in 2022. Analysts clarified that battery innovations — such as power sources requiring smaller amounts of critical minerals — should help turn the tide.
Creative strategies are necessary
The global battery market will remain full of activity. Relevant parties — from engineers to researchers and manufacturing plant leaders — must continually explore the most feasible ways to meet current and future demands. It’s also essential to recognize the challenges of expanding the supply chain.
Concerned parties can best position themselves to mitigate risks with a targeted and layered approach. For example, making the supply chain more localized by strengthening relationships with nearby partners can reduce the impact of adverse effects happening far away. Prioritizing recycling — whether through in-house efforts or strategic friendships with existing recyclers — can gradually lessen people’s dependence on importing raw materials from distant suppliers.
Decision-makers should also consider building vertically integrated supply chains that require companies to control the supply chain and multiple production steps. This approach strengthens quality management and fosters consumer confidence. Vertically integrated supply chains also increase visibility, allowing those in the battery industry to recognize and address issues sooner.
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