CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
Investment in the battery sector is expected to surpass $1.6 trillion by 2040.
This graphic by Elements shows the total capital expenditure (capex) requirements to build capacity to meet future battery demand by 2030 and 2040. Forecasts are current as of July 2024.
Battery demand is projected to increase ninefold by 2040. As a result, the battery industry’s total capex is expected to nearly triple, rising from $567 billion in 2030 to $1.6 trillion in 2040.
Upstream, companies will focus mainly on lithium, nickel, copper, and recycling at the extraction stage.
Demand for recycled materials will increase 26 times by 2040, representing the largest percentage growth in our graphic, with total capex rising from $26 billion to $157 billion.
Midstream, companies will direct most of their funds towards the cathode (the positive electrode during battery discharge), with investment increasing from $48 billion in 2030 to $157 billion in 2040.
Although most of the discussion about clean technologies revolves around raw materials (mines needed to supply the demand) and new battery technologies, in the future, the downstream stage of the battery industry is expected to receive most of the investment.
This stage includes pack assembly, integration into products, distribution, and recycling or disposal of the battery.
Downstream, the total capex is expected to reach $222 billion in 2030 and increase to $686 billion by the year 2040.
(This article first appeared in the Visual Capitalist Elements)
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