BNEF also said Canada is seeing increasing competitiveness and demand for critical minerals due in part to the US-Mexico-Canada Agreement (USMCA).
Meanwhile, China continues to dominate BNEF’s ranking. For the third consecutive year, it finished first for both 2022 and its five-year projection for 2027.
China currently hosts 75 per cent of all battery cell manufacturing capacity and 90 per cent of anode and electrolyte production.
The increasing prices of lithium has also led to higher investments in carbonate and hydroxide refinery facilities in the country, making it the leading refiner of battery metals globally, BNEF said.
“This year, the changes in the overall rankings were mostly driven by the greater access to several key raw materials and manufacturing capacities domestically. Countries that are not necessarily the largest producers or manufacturers but have significant presence across several areas in battery metals and minerals extraction, as well as manufacturing, fared better than countries that excel mostly in a single commodity or component,” Allan Ray Restauro, metals and mining analyst at BNEF, said in a statement. “Success in the battery supply chain is increasingly determined by more than one category or metric. A solid foundation on domestically realized resource wealth, bolstered by responsible and ethical production, is the main theme of the rankings this year as countries and the industry strive for a sustainable supply chain.”
The US dropped to third in the rankings despite the strong growth in battery demand due to the Inflation Reduction Act.
“The Inflation Reduction Act is a major upside for battery demand in the US but, more importantly, it will change the supply landscape in the coming years. The law is the closest thing to industrial policy for batteries that the U.S. has ever had and makes this the most exciting decade yet for the American battery industry,” Yayoi Sekine, head of energy storage at BNEF, said in the same statement. “Companies are looking to maximize battery cell, module and material production incentives and comply with electric-vehicle credit requirements, which will bring more capacity to the country and its allies.”