China has reclaimed the top position in BloombergNEF’s (BNEF) Global Lithium-Ion Battery Supply Chain Ranking, surpassing Canada in the latest assessment released on May 13, 2025. The annual ranking evaluates 30 countries based on their capability to develop a secure, reliable, and sustainable battery supply chain. China’s resurgence to the number one spot is attributed to its low commercial electricity costs and enhanced infrastructure, which have bolstered its performance despite challenging market conditions.
Canada remains a significant player in the raw materials sector and continues to provide a stable investment environment. However, its slower progress in expanding battery manufacturing capacity has diminished its competitive edge. The United States has moved into second place alongside Canada, benefiting from the Inflation Reduction Act (IRA). Nevertheless, recent tariff implementations by President Donald Trump and a rollback of climate initiatives pose potential threats to the US’s advancement by increasing manufacturing costs and diverting investments away from the domestic market.
Ellie Gomes-Callus, Metals and Mining Associate, BloombergNEF, said: “Brazil and Indonesia registered the largest gains in the fifth edition of the ranking. Growth across these emerging markets has been driven by surging demand and ambitious policy roadmaps. However, all eyes will be on the US this year, as it awaits the impact of the Trump administration’s trade policies.”
Established markets such as Japan and South Korea have also improved their rankings, maintaining strong positions within the top 10. Their early involvement in the battery supply chain has allowed them to sustain and enhance their performance across various metrics, even amid global oversupply, reduced profit margins, and heightened trade tensions in the past year.
In contrast, Europe’s potential in the battery supply chain has shown signs of decline. Among the 11 European countries evaluated, only the Czech Republic and Turkey saw improvements, while Hungary and Finland experienced significant drops. Challenges such as stagnant cobalt and nickel industries and complex permitting processes have hindered progress in these regions. Without targeted measures to address these industrial barriers, Europe risks losing ground to more agile emerging markets.
Additional insights from the report indicate that while Canada remains strong in supply chain categories, its battery manufacturing sector has declined due to weaker demand and paused investments from key companies. Europe’s overall competitiveness is waning due to slower growth in battery manufacturing capacity and market saturation. Moreover, the supply of refined battery raw materials remains predominantly concentrated in China, despite efforts to diversify.
Source: BloombergNEF
