Canada has overtaken China for the first time to take the top spot out of 30 countries in BloombergNEF’s global lithium-ion battery supply chain ranking.
China dominated the annual analysis for the past three years, but has fallen to second place in 2024. Canada moved up from second place last year and took the top spot for the first time. This year, the United States ranked third.
Although Canada currently produces only a fraction of China’s lithium-ion battery production, BloombergNEF’s analysis focuses on the future of the battery supply chain.
“Canada’s consistent manufacturing and production advances, as well as strong ESG credentials, have positioned the country to be a leader in shaping the battery supply chain of the future,” BloombergNEF said in a summary of the results released Monday. .
Canada’s win in 2024 comes as the federal government pours billions into support programs to expand domestic electric vehicle battery manufacturing. Congressional budget officials estimate that total federal and state aid from 2022 to 2033 will be nearly $43.6 billion. Multinational companies investing in Canada’s electric vehicle industry include Ford (F), Stellantis (STLA), Volkswagen (VOW3.DE), LG Energy Solutions, and Umicore (UMI.BR).
BloombergNEF examined 46 indicators in five categories to measure countries’ potential to build safe, reliable and sustainable lithium-ion battery supply chains for 2024. Categories include raw materials, battery manufacturing, downstream demand, environmental and social governance, as well as industry, infrastructure, and innovation.
BloombergNEF said earlier this year that Canada’s “raw material resources, strong integration with the U.S. auto sector and clear policy commitments give it an advantage over competitors.”
“Canada is also a big winner of America’s ‘friendshoring’ ambitions. [U.S.] Inflation Control Act,” the authors added. “The country’s position in the BNEF rankings is driven by policy commitments at both the state and federal levels.”
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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