(Reuters) – Global demand for lithium batteries is expected to surge more than five-fold by 2030, public-private alliance Li-Bridge said on Wednesday, as more people opt for electric vehicles and energy storage systems.
Demand for lithium batteries in the United States is expected to grow more than six times and translate into $55 billion per year by the end of the decade, but still the country is expected to depend on imports for supply, the report added.
Li-Bridge works toward accelerating the development of a robust supply chain for lithium-based batteries and the coordination is led by Argonne National Laboratory, which is funded by the U.S. Department of Energy.
Demand for EVs has soared over the past few years, as climate-conscious consumers snap up cars with electric powertrains, amid soaring fuel prices.
Lithium batteries that would power a range of vehicles over the next few years will also be essential to military systems and consumer, medical, and industrial electronics.Â
According to the Li-Bridge report, under current conditions U.S. companies and workers will capture less than 30% of the value of cells consumed domestically.
“The lack of a substantial lithium battery supply chain in the United States and the lack of secure access to energy materials pose serious threats to U.S. national and economic security,” Li-Bridge said.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shailesh Kuber)