A lithium-ion (aka Li-ion) battery consists of two nodes: an anode (negative) and cathode (positive), separated by materials that help electrons flow between the nodes. The anode is typically graphite, but the cathode can be various lithiated metal oxides. Because the active material in the cathode is the distinguishing factor. The lithium-ion battery supply chain begins with mining the minerals and ores that make up the battery materials. The figure below shows the average mineral composition of a Li-ion. The sourcing, and thus pricing of lithium has been a big question mark in 2022 as researchers worry about the future supply in an increasingly battery. In 2021, the Federal Consortium for Advanced Batteries within the Department of Energy outlined a National Blueprint for Lithium Batteriesthrough 2030. The plan's vision can be summarized. In the 2022 Inflation Reduction Act (IRA), the 2010 electric vehicle tax credits have been updated and expanded. One of the most contested updates is criteria that are motivated by increasing.
[PDF Version]
Where do EV batteries come from?
Like the upstream portion of the EV battery supply chain, the midstream portion is concentrated in a small number of countries, mostly outside of the United States. Asia dominates the midstream portion: according to BloombergNEF, China, South Korea, and Japan are the world's three top battery manufacturing countries, with China dominating.
How is the EV battery supply chain dispersed around the world?
The EV battery supply chain is dispersed around the world — battery minerals travel an average of 50,000 miles from extraction to battery cell production. At the same time, much of the mineral supply is concentrated in just a few countries. This dispersion and concentration make the global supply chain vulnerable to disruptions, including:
Are EV batteries coming to the US?
We are also seeing more battery manufacturers opening sites in the US. One of the first large joint ventures we saw was the Tesla and Panasonic partnership that led to the Tesla gigafactory in Nevada, but Panasonic recently announced a new factory in Kansas, which will supply batteries to various EV manufacturers.
The downstream portion of the EV battery supply chain involves the assembly of battery cells into modules and then packs before placing finished batteries into EVs. (To learn more about how EV batteries work and how they're made, read “ EV Batteries 101: The Basics.”)
Where are batteries made?
The purified metals are then sent to manufacturers who make the cathodes, anodes and electrolytes, then assemble them into cells. The most prevalent battery manufacturing companies are in China (CATL, BYD & CALB), South Korea (LG Energy Solution, Samsung, and SK Innovation), and Japan (Panasonic).
Are EV batteries responsibly sourced?
They don't want their EVs to be powered by minerals obtained through slave labor or mining practices that destroy local environments. But due to the opacity of EV battery supply chains, it's very difficult for them to find out whether their batteries are responsibly sourced.