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Chart: The $400 Billion Lithium Battery Value Chain

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Breaking Down the $400 Billion Battery Value Chain

As the world transitions away from fossil fuels toward a greener future, the lithium battery industry could grow fivefold by 2030. This shift could create over $400 billion in annual revenue opportunities globally.

For this graphic, we partnered with EnergyX to determine how the battery industry could grow by 2030. 

Exploring the Battery Value Chain

The lithium battery value chain has many links within it that each generate their own revenue opportunities, these include: 

  • Critical Element Production: Involves the mining and refining of materials used in a battery’s construction.
  • Active materials: Creating and developing materials that react electrochemically to allow batteries to charge and discharge. 
  • Battery cells: Involves the production of rechargeable elements of a battery. 
  • Battery packs: Producing packs containing a series of connected battery cells. Generally, these come in two types: NMC/NMCA, the standard in North America and Europe, and LFP, the standard in China.
  • Recycling: Reusing battery components within new batteries. 

But these links arenโ€™t equal, each one is projected to generate different levels of revenue by 2030:

China ๐Ÿ‡จ๐Ÿ‡ณEurope ๐Ÿ‡ช๐Ÿ‡บUnited States ๐Ÿ‡บ๐Ÿ‡ธRest of World ๐ŸŒ
Total$184B$118B$62B$39B
Critical Element Production$37B$25B$15B$8B
Active Materials$54B$31B$14B$11B
Battery Packs$34B$22B$11B$7B
Battery Cells$53B$37B$20B$11B
Recycling$6B$3B$2B$2B

On the surface, battery cell production may contribute the most revenue to the battery value chain. However, lithium production can generate margins as high as 65%, meaning lithium production has potential to yield large margins.   

How Much Lithium Is Available?

Just a few countries hold 81% of the world’s viable lithium. So, supply bottlenecks could slow the growth of the lithium battery industry:  

NationViable Lithium Reserves (2023)
Chile ๐Ÿ‡จ๐Ÿ‡ฑ9.3M t
Australia ๐Ÿ‡ฆ๐Ÿ‡บ6.2M t
Argentina ๐Ÿ‡ฆ๐Ÿ‡ท2.7M t
China ๐Ÿ‡จ๐Ÿ‡ณ2M t
U.S. ๐Ÿ‡บ๐Ÿ‡ธ1M t
Rest of World ๐ŸŒ4.9M t

Supplying the World With Batteries

Supplying the world with lithium is critical to the battery value chain and a successful transition from fossil fuels. Players like the U.S. and the EU, with increasingly large and growing lithium needs, will need to maximize local opportunities and work together to meet demand.

EnergyX is on a mission to become a world leader in the global transition to sustainable energy, using cutting-edge direct lithium extraction to help supply the world with lithium. 

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