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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).

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