Trump’s tariffs stall US battery momentum as China powers ahead
China has reclaimed the No. 1 spot on BloombergNEF’s annual Global Lithium-Ion Battery Supply Chain Ranking, bumping Canada to second place, as its low electricity prices and strong infrastructure gave it the edge in 2024.
The report ranks 30 countries based on how well they’re positioned to build a secure and sustainable battery supply chain, and this year’s reshuffling says a lot about where the market’s headed.
Canada, which had taken the lead in 2023, held onto a solid second-place finish, tied with the US. But while Canada is still a leader in battery raw materials and continues to attract investors with its stable political environment, it’s been slow to scale up battery manufacturing. That drop in momentum left the door open for China to reclaim its lead.
The US is facing its own set of challenges. The Inflation Reduction Act gave America’s battery industry a significant boost last year, but that progress is now under threat. Donald Trump’s latest tariffs and climate rollbacks are starting to push up costs for US battery makers. They’re also making the US less attractive to investors, which could slow down new projects and shrink domestic demand for EVs and storage systems.
“Brazil and Indonesia registered the largest gains in the fifth edition of the ranking,” said Ellie Gomes-Callus, a metals and mining associate at BloombergNEF. “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.”
Japan and South Korea also climbed higher in the top 10. Their early lead in building out battery supply chains is still paying off, even as global competition heats up and profit margins shrink. Like China, they’ve managed to hold strong in all five of BloombergNEF’s scoring categories: raw materials, manufacturing, demand, ESG (environmental, social, and governance), and innovation.
Europe, on the other hand, is starting to slip. Out of 11 European countries in the ranking, only the Czech Republic and Turkey improved their standings this year. Five stayed the same, and four dropped. Hungary and Finland saw the biggest falls – seven and six spots, respectively. Hungary is now second-worst in Europe for ESG metrics, and Finland’s once-promising nickel and cobalt industries have lost steam, partly due to tough permitting rules. Case in point: BASF’s new battery component plant in Harjavalta has been delayed by permitting issues.
Without stronger government action and better support for manufacturers, Europe risks losing even more ground to fast-moving markets in South America and Southeast Asia.
The report also highlighted some other trends shaping the global battery race. Canada stayed strong overall but lost ground in manufacturing. A few major companies, including Ford, E-One Moli, and Umicore, have paused investments despite new government support, citing weaker-than-expected demand.
Meanwhile, Europe’s battery growth is slowing as capacity lags behind other regions and demand softens due to smaller market sizes and EV saturation in places like the Nordics. Countries in Eastern Europe and Scandinavia are falling behind as a result.
The raw materials side of the market isn’t looking great either. Supply is up, but demand is down. There’s too much material and not enough buyers. And while the market for mined metals is overflowing, refined battery metals tell a more mixed story. Still, one thing hasn’t changed: China remains the dominant force in refining, and it’s still leading the way in building new manufacturing capacity, even as other countries struggle to scale up.
Unless the US and Europe can course-correct quickly, they may find themselves watching from the sidelines as China and emerging economies lead the next phase of the global battery boom.
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On today’s budget-conscious episode of Quick Charge, we’re building up to the reveal of a new, more affordable Tesla Model Y tomorrow that will almost definitely not be a cheap pile of misaligned plastic body parts with inconsistent panel gaps that’s utterly incapable of turning the tide on Tesla’s global decline.
Plus, we’ve got news that Tesla is in hot water with California over its alleged mishandling of its insurance business, revisit the lies told about Cybertrucks drag racing Teslas, and look at the incredible 110% increase in EV sales over at GM that’s driving Cadillac’s renaissance.
Today’s episode is brought to you by Climate XChange, a nonpartisan nonprofit working to help states pass effective, equitable climate policies. The nonprofit just kicked off its 10th annual EV raffle, where participants have multiple opportunities to win their dream model. Visit the site at CarbonRaffle.org/Electrek to learn more.
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Waev Inc. has just unveiled the GEM eX, a new electric utility vehicle designed to bridge the gap between street-legal low-speed vehicles (LSVs) and true off-road work machines. The company calls it the most versatile electric work UTV yet.
Unlike most golf cart–based UTVs or high-speed recreational rigs, the GEM eX is purpose-built for commercial, industrial, and government fleets that need to move between city streets, job sites, and rough terrain, all while staying emissions-free.
The vehicle features a top speed of 25 mph (40 km/h) and is said to be DOT street-legal as an LSV on roads up to 35 mph (56 km/h), giving it a clear advantage over most off-road-only competitors.
Power is provided by a 6.5 kW motor in a rear-wheel drive setup with a limited-slip rear differential. An 8 kWh battery provides enough juice for a claimed maximum range of 85 miles (137 km).
The eX comes with several fleet-focused safety and utility upgrades, including 3-point seat belts, roof crush protection, backup camera, mirrors, pedestrian noise emitter, and a robust bumper system. It rolls on street, winter, or all-terrain tires, and the chassis features 9.5 inches (24 cm) of ground clearance, 6.5 inches (16.5 cm) of suspension travel, and a 50-degree approach angle for climbing curbs or crossing uneven work terrain.
Hill-hold assist and single-pedal descent control make it easy to handle on slopes, while a limited-slip differential helps maintain traction without chewing up turf.
In the back, a 1,250 lb (567 kg) composite dump box can fit a full-sized pallet and comes with gas-assist or electric lift options, while towing capacity matches that at 1,250 lb (567 kg). Optional hard doors, roll-down windows, and HVAC with heat and A/C turn it into a true all-weather workhorse.
The lithium iron phosphate battery pack is said to provide a long lifespan for extra durability in extreme climates from –20°F to 140°F (–29°C to 60°C). Charging is flexible via 120V, 240V, or J1772 public stations, and Waev backs the battery with a 7-year warranty – on par with many passenger EVs.
“We field-tested the GEM eX everywhere from Arizona deserts to Minnesota winters,” said Sven Etzelsberger, Waev’s Director of Engineering. “Every piece of customer feedback went back into this vehicle. The result is a work UTV that’s refined, reliable, and ready to go.”
The GEM platform has expanded significantly over the years, from its humble beginnings as a simple people mover to more recent adaptations into everything from ambulances and emergency vehicles to the new GEM eX electric UTV.
Priced at $24,955, the higher purchase price may be one of the few downsides to the quieter, cleaner, and easier to maintain alternative to traditional gasoline-powered UTVs.
Electrek’s Take
Waev’s new GEM eX seems to hit a sweet spot that’s been missing – a street-legal, electric work UTV tough enough for real jobs yet affordable and easy to maintain. For fleet managers juggling both paved and off-road environments, this could be a serious game-changer.
While the price is high, it comes in at significantly less than other well-known models like Polaris’ Zero-powered electric RANGER UTV.
At the same time, there are still more affordable options like those from KANDI that offer more power for a lower price. However, without GEM’s storied brand legacy and increased national support, cheaper options may not have the staying power to compete.
So sure, it’s expensive, but at least I’m glad to see more options coming to the market, especially from brands that have been around for years. Here’s to hoping for more affordable options in the future.
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