Mapped: EV Battery Manufacturing Capacity, by Region
The demand for lithium-ion batteries for electric vehicles (EVs) is rising rapidly—it’s set to reach 9,300 gigawatt-hours (GWh) by 2030—up by over 1,600% from 2020 levels.
For that reason, developing domestic battery supply chains, including battery manufacturing capacity, is becoming increasingly important as countries strive to shift away from gasoline vehicles to EVs.
Which countries are leading the race for batteries? The above infographic from Scotch Creek Ventures highlights the top 10 nations for EV battery manufacturing.
The Top 10 Countries by Capacity
The biggest battery manufacturers are located in regions that have high demand for EVs, and that have wide access to raw materials:
|Rank||Country||2021 Li-ion manufacturing capacity (GWh)||% of World Total|
|#5||South Korea 🇰🇷||18||2.5%|
|N/A||Rest of the World 🌍||1||0.1%|
Data as of February 1, 2021.
Source: S&P Global Market Intelligence
China is by far the leader in the battery race with nearly 80% of global Li-ion manufacturing capacity. The country also dominates other parts of the battery supply chain, including the mining and refining of battery minerals like lithium and graphite.
The U.S. is following China from afar, with around 6% or 44 GWh of global manufacturing capacity. Tesla and Panasonic’s Giga Nevada accounts for the majority of it with 37 GWh of annual capacity, making it the world’s largest battery manufacturing plant.
European countries collectively make up for 68 GWh or around 10% of global battery manufacturing. Moreover, Hungary and Poland also make the top five, hosting plants owned by large battery manufacturers like SK Innovation and LG Chem.
The Future of EV Battery Manufacturing
According to S&P Global Market Intelligence, global lithium-ion manufacturing capacity is expected to more than double by 2025.
Here’s how the top 10 countries could stack up in 2025:
|Rank||Country||2025P Li-ion manufacturing capacity (GWh)||% of World Total|
|#8||South Korea 🇰🇷||18||1.2%|
|N/A||Rest of the World 🌍||20||1.4%|
Although China is expected to come out on top again, its share of worldwide capacity could fall to around 65% as other countries ramp up battery production. For instance, Germany’s capacity is projected to rise to 164 GWh, representing a 15-fold increase in just four years.
Furthermore, the U.S. is expected to more than double its capacity by 2025. In fact, 13 new plants are expected to be operational in the next five years, providing a boost to domestic EV battery manufacturing capabilities.
It’s important to note that the battery industry is evolving rapidly, and these rankings could change as manufacturers set up shop in different countries. However, it’s clear that both battery demand and manufacturing capacity are set to grow. And more batteries require more raw materials—especially critical metals like lithium.
Global lithium demand from battery factories could hit 3 million tonnes by 2030, requiring a massive increase over the 82,000 tonnes produced in 2020. As countries like the U.S. ramp up battery manufacturing, new sources of lithium could prove increasingly valuable in building sustainable battery supply chains.
Scotch Creek Ventures is developing two lithium mining projects in Clayton Valley, Nevada, to supply lithium for the green future.
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The Hierarchy of Zero Waste
In a world that generates 2 billion tonnes of waste every year, waste management has become a global concern. Here are some strategies to help guide zero waste policies.
The Hierarchy of Zero Waste
Many cities have set ambitious zero waste targets in the upcoming decades.
The idea is to have communities where waste generation is avoided, and products are shared, reused, or refurbished.
This graphic, sponsored by Northstar Clean Technologies, shows the main strategies and hierarchy to guide zero waste policies.
What is Zero Waste?
In a world that generates approximately 2 billion tons of waste every year, waste management has become a global concern. Thus, countries and cities are increasing efforts to reduce or even eliminate waste when possible.
The Zero Waste International Alliance defines zero waste as “the conservation of all resources by means of responsible production, consumption, reuse, and recovery of products, packaging, and materials without burning and with no discharges to land, water, or air that threaten the environment or human health.”
Becoming a zero waste community, however, is a complex task.
Currently, Sweden recycles 99% of locally-produced waste and is considered the best country in the world when it comes to recycling and reusing waste. However, such results only came after almost 40 years of recycling and reuse policies.
In line with this, here are seven commonly accepted steps you can use to achieve zero waste:
1. Rethink, Redesign Products
The global population consumes 110 billion tons of materials each year, but only 8.6% is reused or recycled. In a zero waste society, single-use products are avoided and products are designed with sustainable practices and materials.
Consumption must be planned carefully to reduce the unnecessary use of materials. Consumers must choose products that maximize the usable lifespan and opportunities for continuous reuse. Companies must minimize the quantity and toxicity of materials used.
The value of products is maintained by reusing, repairing, or refurbishing for alternative uses.
Products are diverted from waste streams and recirculated into use. Resilient local markets are developed, allowing the highest and best use of materials.
5. Material Recovery
Component materials like cement, metals, or asphalt are recovered from mixed waste and collected for other applications.
In the U.S. alone, around 12 million tons of asphalt shingle tear-off waste and installation scrap are generated from roof installation each year. Currently, more than 90% of this is discarded in landfills. This material can be repurposed to create new products like liquid asphalt, fiber, and aggregate.
6. Residuals Management
Waste is biologically stabilized and sent to responsibly managed landfills.
The production of materials that are not recoverable and can negatively impact the environment must be avoided.
Reducing our Climate Impact
Reducing, recycling, and recovering materials can be a key part of a climate change strategy to reduce our greenhouse gas emissions.
According to the U.S. Environmental Protection Agency, about 42% of all greenhouse gas emissions are caused by the production and use of goods, including food, products, and packaging.
Even though 100% zero waste may sound difficult to achieve in the near future, a zero waste approach is essential to reduce our impact on the environment.
Northstar Clean Technologies aims to become the leading recovery and reprocessing company for asphalt shingles in North America.
Visualizing Raw Material Inflation in Canada
Over the last year, raw material inflation in Canada was 37%. Which material prices jumped the most, and how does this impact manufacturers?
Raw Material Inflation in Canada
Inflation in Canada is climbing, and it has impacted the raw materials manufacturers use to produce goods. In fact, raw material prices have climbed 37% year-over-year on average.
More than half of manufacturers say this is one of their top challenges. In this graphic from Canadian Manufacturers & Exporters (CME), we show which materials have seen the biggest price spikes over the last year.
Inflation by Raw Material
The table below shows the rate of inflation in Canada for select raw materials from May 2021 to May 2022.
|Raw Material||Category||Price Change
(May 2021-May 2022)
|Crude Oil & Bitumen||Crude Energy||85.0%|
|Natural Gas||Crude Energy||50.3%|
|Beans, Peas, & Lentils||Crops||43.3%|
|Logs & Forestry Products||Forestry Products & Natural Rubber||42.1%|
|Scrap Metal||Metal Ores & Scrap||40.3%|
|Fish & Fishery Products||Animal Products||23.7%|
|Lead & Zinc Ores||Metal Ores & Scrap||21.2%|
|Cattle & Calves||Animal Products||10.2%|
|Eggs in Shell||Animal Products||8.4%|
|Sand, Gravel, & Clay||Non-metallic Minerals||8.1%|
|Fresh Fruit & Nuts||Crops||8.0%|
|Nickel Ores||Metal Ores & Scrap||5.8%|
|Tin, Iron Alloys, & Other Ores||Metal Ores & Scrap||3.3%|
|Gold Ores||Metal Ores & Scrap||2.1%|
|Natural Rubber||Forestry Products & Natural Rubber||1.4%|
Crude energy materials led the rise, with the price of coal nearly doubling over the last year. Oil and natural gas prices also rose amid war-related supply constraints and higher demand as people got back to pre-pandemic activities. This has far-reaching consequences for manufacturers given that oil and gas is widely used for transportation and heat, and is an input in thousands of products.
Wheat inflation in Canada reached 73.4%. The cost increase was partly due to a drought in Western Canada that reduced Canadian wheat production by nearly 40% from 2020 to 2021. Internationally, the Russia-Ukraine conflict also threatened wheat supply as the two countries normally account for almost a third of global wheat exports. Wheat inflation has affected food and fuel manufacturers the most, as it is used for livestock feed, biofuels, and a wide range of human food.
Simultaneously, the price of lumber increased by 42.1% because of an increased demand for housing, and flooding in British Columbia that reduced supply. This affects manufacturers who produce things like timber and plywood, and ultimately influences the cost of housing.
How Inflation in Canada Affects Manufacturers
Raw material inflation drives up manufacturers’ cost of doing business. Unfortunately, it isn’t the only price pressure they face. Ocean shipping costs are more than five times higher compared to when the pandemic began. Truck transportation costs rose by 15% from March 2021 to March 2022, based on the latest available data.
On top of this, manufacturers have to contend with supply chain disruptions, global uncertainty, and labor shortages. What can manufacturers do? A majority of manufacturers have been raising prices to pass on some of the additional costs to consumers.
|Response to Supply Chain Challenges||% of Manufacturers|
|Delay fulfilling customer orders||79%|
|Find alternative supplier of raw materials and other inputs||69%|
|Lay off workers||9%|
Over the longer term, manufacturers say they plan to build stronger relationships with customers and suppliers, source critical raw materials from two suppliers, and bring their supplier base and production closer to home.
Looking ahead, most manufacturers say they expect supply chain issues to be resolved some time in 2023—though they were last asked this question before the war in Ukraine began. The Bank of Canada also expects inflation in Canada to ease in the second half of 2023. In the meantime, manufacturers will be forced to adapt to rising costs.
Learn more about how CME helps manufacturers grow at home and abroad through programs, services, and advocacy.
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