Hyperdrive
U.S. Loosens China Grip on $46 Billion Lithium-Battery Industry
- China ranks No. 1 in supply chain ranking with U.S. edging up
- Tesla and Biden policies help drive U.S. gains in value chain
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The U.S. is narrowing the gap on China’s dominance of the $46 billion lithium-ion battery industry thanks to investments from Tesla Inc. and the Biden administration’s policy push to drive growth of electric vehicles.
The U.S. rose to second spot in BloombergNEF’s global lithium-ion battery supply chain ranking for both this year and a 2026 projection, the energy data and analysis firm said in a Thursday report. The nation was sixth for 2020 in last year’s inaugural ranking. The U.S. has the second-largest EV market globally, after China, and Tesla and Asian cell makers are making “significant” investments in the country as government policies help establish a domestic battery supply chain.