IEA analysis based on data from Benchmark Mineral I ntelligence and EV Volumes. EV = electric vehicle; RoW = Rest of the world. The unit is GWh. Flows represent battery packs produced and sold as EVs.
While EVs represent a promising means of decarbonizing transportation, the material demand associated with LIB production engenders concern about supply chain sustainability and end-of-life (EoL) management.
As manufacturing capacity expands in the major electric car markets, we expect battery production to remain close to EV demand centres through to 2030, based on the announced pipeline of battery manufacturing capacity expansion as of early 2024.
LG Energy Solutions regularly transports materials between each of their 4 factories, depending on the requirements in each region. These are all shipped in reefer containers across a global, cross-functional supply chain.
They currently operate factories in China, Poland, the United States and South Korea, producing and delivering EV and ESS batteries to the vehicle manufacturers. Electric Vehicle batteries are, by nature, a valuable commodity in very high demand.
Assumes battery exchange workshop and recycling facility are co-located, distance from exchange workshop to landfill is 20 km, and distance from recycling facility to landfill is 8 km. Transportation accounts for 2.5% of vehicle cycle energy consumption. EoL transportation is modeled from production plant to service shop (1600 km).