US Could End Reliance On China For EV Batteries By 2030, Says Goldman Sachs

The U.S. and Europe could end their reliance on China for electric vehicle batteries, according to Goldman Sachs. 

What Happened: The investment banking company, in a note to clients seen by the Financial Times, said the West could end their dependence on China for EV batteries through more than $160 billion of new capital spending by 2030. 

See Also: Tesla Supplier Plans Second EV Battery Facility In US: Report

Goldman Sachs did not immediately respond to Benzinga‘s request for comment.

Currently, China dominates EV battery production, including mining and refining of materials required for making it.

The Goldman Sachs analysts believe that the demand for finished batteries could be met without Beijing within the next three to five years since South Korean conglomerates, LG and SK Hynix, have decided to invest in the U.S.

Related: Tesla Supplier To Commence Kansas EV Battery Plant Construction In November

The report estimated that to achieve a self-sufficient supply chain, the U.S. or any other nation competing with China would have to spend $78.2 billion on batteries, $60.4 billion on components, and $13.5 billion on mining of lithium, nickel and cobalt, as well as $12.1 billion on refining of those materials. 

The analysts forecast the market share of Korean battery manufacturers in the U.S. to soar to about 55% in three years from 11% in 2021.

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