A new report by Li-Bridge, a public-private alliance managed by Argonne National Laboratory, has highlighted the need for the US to bolster its lithium battery cell sourcing and manufacturing strategy to remain competitive in the expanding lithium-battery market and to reach climate goals. The lithium battery cell market in the US is expected to reach $55 billion per year by 2030. However, the current growth pace of domestic sourcing will limit the industry to just 30% of that demand, according to the report.
Li-Bridge recommends capturing 60% of the economic value from domestic demand of lithium batteries by the end of the decade, which would generate $33 billion in revenue and create 100,000 jobs. The group warns that without reliable access to lithium battery technology, the US cannot achieve its greenhouse gas emission reduction targets by 2030 or net-zero emissions by 2050, endangering its position on the global stage. The report outlines five recommendations for the US, including improving investment attractiveness, supporting R&D of domestic battery innovation, helping US companies access critical minerals and energy materials, addressing knowledge gaps, and establishing a public-private partnership to support a robust lithium supply chain in North America.
Li-Bridge emphasizes that national security could be at risk as the US defense becomes more reliant on lithium batteries, and warns that the US will miss its 2050 net-zero carbon emissions goal and fail to ensure an inclusive and socially responsible industry without reliable access to lithium battery technology. While recent federal policy initiatives such as the Infrastructure Investment and Jobs Act and the Inflation Reduction Act are expected to accelerate US demand for lithium battery components and materials and increase North American production capacity, Li-Bridge highlights that other countries have already achieved significant expertise in critical minerals and energy materials. The electrochemical storage of electricity will be as important a technology to the economy of the 21st century as the semiconductor chip has been, according to James Greenberger, executive director at NAATBatt International.