Canada has surpassed China for the first time, claiming the top spot in the annual BloombergNEF global lithium-ion battery supply chain ranking. The report, now in its fourth edition, assesses each country’s potential to build a secure, reliable, and sustainable supply chain for lithium-ion batteries. The assessment includes 46 different metrics divided into five categories: resources, battery production, demand, environmental and social responsibility, as well as industry, infrastructure, and innovation.
Canada’s success in securing the first-place position in 2023 is primarily attributed to consistent progress in production and strong aspects related to environmental and social responsibility. Canada has improved its scores in all five categories compared to the previous two editions of the ranking. Companies such as Umicore, Volkswagen, Ford, Stellantis, and LG Energy Solutions have recently announced their investment plans in Canada.
Resources are the foundation of Canada’s supply chain. The country maintains the third position in terms of lithium-ion battery-related resources, thanks to its current extraction and refining capacity, as well as a well-developed plan to utilize battery metal markets in the long term.
Canada has also improved its position in battery production and demand, ranking 7th and 10th respectively. Major battery factories, such as those announced by Volkswagen and Northvolt, confirm the federal government’s commitment, which has allocated up to $25 billion to support these projects.
In the category of environmental and social responsibility, Canada maintains its 6th place, being the only North American country in the top ten. However, there is potential for advancement in the ranking if the country increases carbon dioxide emissions taxes and focuses on better ecosystem management.
Lastly, Canada has advanced two places in the industry, infrastructure, and innovation category, securing the second place. This progress is a result of having the cheapest commercial electricity among all surveyed countries. However, BNEF emphasizes that in order to maintain the leadership position in this category, Canada needs to focus on strengthening its domestic infrastructure and innovation landscape, as well as improving its performance in trade, policy, and investments.
The news from the BNEF ranking regarding North America is optimistic. In addition to Canada, the United States has also achieved success, ranking third, and Mexico has climbed eight spots to the 19th position.
The ranking also considers potential threats to Canada, noting that low battery metal prices may limit the development of projects in the region. Greater financial support is cited as necessary to increase project cost competitiveness.
Key Questions Regarding the Global Lithium-Ion Battery Supply Chain Ranking:
1. Which categories are considered in the ranking?
Answer: The ranking considers five categories: resources, battery production, demand, environmental and social responsibility, as well as industry, infrastructure, and innovation.
2. Why does Canada rank first in the ranking?
Answer: Canada ranks first due to consistent progress in battery production, strong aspects related to environmental and social responsibility, and investments from companies such as Umicore, Volkswagen, Ford, Stellantis, and LG Energy Solutions.
3. In which category does Canada hold the third position?
Answer: Canada holds the third position in terms of lithium-ion battery-related resources, thanks to its extraction and refining capacity and a well-developed plan to utilize battery metal markets.
4. What is Canada’s contribution to battery production and demand?
Answer: Canada ranks 7th and 10th in battery production and demand respectively. Major battery factories, such as those announced by Volkswagen and Northvolt, have received financial support from the federal government.
5. In which category does Canada hold the 6th position?
Answer: Canada holds the 6th position in terms of environmental and social responsibility. However, there is potential for advancement if the country increases carbon dioxide emissions taxes and focuses on better ecosystem management.
6. What are the challenges for Canada in relation to the ranking?
Answer: The ranking points out that low battery metal prices may limit project development in the region. Greater financial support is required to increase project cost competitiveness.
7. What are the other results for North America?
Answer: The United States ranks third, and Mexico has climbed to the 19th position.
8. What are the prospects for the development of the lithium-ion battery industry in Canada?
Answer: The prospects for the development of the lithium-ion battery industry in Canada are optimistic due to consistent progress in production, investments in battery factories, and the interest from global companies. Financial support and continued efforts toward environmental protection will be crucial to maintain Canada’s industry at the top of the ranking.
Important Terms:
1. Lithium-ion batteries – a type of battery with high capacity and voltage widely used in electronic devices and electric vehicles.
Related Links:
1. BloombergNEF – the homepage of the research firm that publishes the lithium-ion battery supply chain ranking.
The source of the article is from the blog kunsthuisoaleer.nl