What nation dominates the global supply chain for electric car batteries?
The batteries used in electric cars are mainly comprised of lithium-ion cells. A 2020 report by Benchmark Mineral Intelligence estimates that China supplies: 23% of the world's raw materials for lithium-ion batteries; 80% of all chemicals manufactured to make these batteries; 66% of all cathodes and anodes (the core building blocks of these batteries); and 73% of the world's finished lithium ion battery cells. In sum, China dominates 3 of the 4 key levels of the global supply chain for electric car batteries. The U.S. Senate recently passed an "INVEST in America Act" (commonly called the "infrastructure" bill) that contains 206 references to "electric vehicle" and adds a range of taxpayer-funded subsidies for them. These are in addition to a current federal subsidy of up to $7,500 per car and various state subsidies, like a $2,500 "rebate" in Massachusetts.