Canada has overtaken China for the first time in BloombergNEF’s global lithium-ion battery supply chain ranking, claiming the top spot among 30 nations.
China fell to second place in 2024 after dominating the annual analysis for the past three years. Canada rose from second place last year to claim the top spot for the first time. The United States ranked third this year.
While Canada produces only a tiny fraction of China’s lithium-ion battery output today, the BloombergNEF analysis is focused on future battery supply chains.
“Canada’s consistent manufacturing and production advances, and strong ESG credentials, have helped it become a leader in forming the battery supply chains of the future,” BloombergNEF wrote in a summary of the results published on Monday.
The win for Canada in 2024 comes as the federal government pours billions of dollars into support programs to expand domestic electric vehicle battery manufacturing. The Parliamentary Budget Officer estimates the total cost of federal and provincial government support between 2022 and 2033 will be close to $43.6 billion. Ford (F), Stellantis (STLA), Volkswagen (VOW3.DE), LG Energy Solutions and Umicore (UMI.BR) are among the multinational companies invested in Canada’s electric vehicle industry.
For 2024, BloombergNEF looked at 46 metrics in five categories to measure each country’s potential to build a secure, reliable and sustainable lithium-ion battery supply chain. The categories include raw materials, battery manufacturing, downstream demand, environmental and social governance, as well as industry, infrastructure and innovation.
This year, BloombergNEF says Canada’s “raw material resources, strong integration with the U.S. automotive sector, and clear policy commitments have given it an edge over competitors.”
“Canada is also a big winner of the ‘friendshoring’ ambitions of the [U.S.] Inflation Reduction Act,” the authors added. “The country’s position in BNEF’s ranking is propelled by policy commitment at both the provincial and federal level.”
