Goldman Sachs says U.S., Europe may finish reliance on Chinese language EV batteries by 2030 -FT By Reuters

(Reuters) – The US and Europe may lower their dependence on China for electrical automobile batteries by way of greater than $160 billion of latest capital spending by 2030, the Monetary Instances reported on Monday, citing a Goldman Sachs (NYSE:) forecast.

The funding financial institution’s analysts consider demand for completed batteries may very well be met with out China throughout the subsequent three to 5 years, because of investments within the U.S. by South Korean conglomerates LG and SK Hynix, in accordance with a Goldman report back to purchasers seen by the newspaper.

The report calculated that to realize a self-sufficient provide chain, international locations competing with China would wish to spend $78.2 billion on batteries, $60.4 billion on parts and $13.5 billion on mining of lithium, nickel and cobalt, in addition to $12.1 billion on refining of these supplies, FT stated.

Goldman forecast that the U.S. market share of the Korean battery makers would soar to about 55% in three years, from 11% in 2021, FT stated.

For now, China dominates battery manufacturing, together with the mining and refining of uncooked supplies.

The analysts stated this dominance may very well be unwound by protectionist insurance policies in Europe and the USA, coupled with various battery chemistries that require fewer vital minerals from China, FT reported.

Goldman Sachs didn’t instantly reply to a Reuters request for remark.