Back to the complete issue
Tuesday, 22 November 2022

Europe and the US could become self-sufficient in EV batteries by 2030 — for the small sum of USD 160 bn

The West could unwind its reliance on Chinese EV batteries by the end of the decade — but it’s going to come with a hefty price tag, Goldman Sachs strategists wrote in a report seen by the Financial Times. The US and Europe would need to put down more than USD 160 bn in capex spending to become self-sufficient in EV batteries and break their reliance on Chinese manufacturers, who currently hold some 75% of market share. Protectionist policies, alternative kinds of batteries that don’t rely on minerals mined mainly in China, and more battery recycling could also help break Beijing’s dominance in the industry.

South Koren firms are stepping in: Major government subsidies have attracted South Korean giants LG and SK to invest in EV battery factories in the US. Goldman thinks US-based Korean manufacturers could capture more than half of market share in the next three years, up from a current 11%. LG Chem only today announced it will build a new USD 3 bn battery cathode factory in Tennessee, the largest of its kind in the US.

Not everyone thinks China can be beat so easily: One EV consultant told the FT that Goldman’s USD 160 bn estimate is way below what’s needed, adding that the 2030 time frame is too optimistic and the impact of battery recycling had been overestimated. The US is already facing labor shortages and wage inflation, making EV batteries more expensive to produce — with capex per unit some 78% higher than in China.

Earmark more time for your World Cup watch parties: The first five World Cup matches saw an average of 16 extra minutes of playtime, as FIFA changes up its rules to more accurately measure stoppages and maximize time when the ball is in play. The England-Iran match ran for 30 minutes longer than scheduled after a goalkeeper and a defender were injured, while yesterday’s other matches also all saw significant extra time, football news outlet Goal reports. “Think about it: if you have three goals in a half, you'll probably lose four or five minutes in total to celebrations and the restart” alone, chairman of FIFA's referees committee, Pierluigi Collina, told ESPN (Listen: 1:08:35).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.