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China Regains Top Spot in Global Lithium-Ion Battery Supply Chain Rankings; India Moves to 14th

China has reclaimed its position as the global leader in the lithium-ion (Li-ion) battery supply chain in BloombergNEF’s (BNEF) 2024 rankings, surpassing Canada. The annual index evaluates 30 countries based on their ability to build a secure, sustainable, and reliable Li-ion supply chain. China’s return to the top was primarily driven by low commercial electricity prices, robust infrastructure growth, and its dominance in refined battery materials and manufacturing capacity.

Canada dropped to joint-second alongside the United States due to slow scaling of Li-ion battery manufacturing despite strong raw material availability and favorable policies. Investment delays by major firms like Ford and Umicore also impacted Canada's performance. The U.S. climbed one spot, propelled by the Inflation Reduction Act, but faces potential setbacks from former President Donald Trump’s tariff and climate policy shifts, which may reduce domestic demand and deter investment.

Japan and South Korea improved their rankings thanks to early investments and resilient operations, while emerging markets like Brazil and Indonesia saw notable progress due to growing demand and proactive policy support. However, Europe showed signs of decline, with countries like Hungary and Finland falling significantly due to permitting issues and stagnation in battery metal industries. The region's battery manufacturing pace lags behind other markets, with limited demand growth and high operational costs posing challenges.

Despite an oversupply in 2023 that pressured margins, the global battery industry witnessed a 20% drop in Li-ion battery pack prices to a record low of $115/kWh, reflecting reduced material costs and slower EV sales. India moved up to 14th place in the rankings, continuing its gradual progress in this critical sector.