China’s dominance in the battery market, particularly in producing low-cost lithium iron phosphate (LFP) batteries, continues to shape the global EV landscape. According to BloombergNEF’s 2024 outlook (https://about.bnef.com/electric-vehicle-outlook/), Chinese manufacturers produce these batteries are more than 40% cheaper than their Western counterparts, thanks to efficient large-scale production and robust supply chains. Graphite, which constitutes about 10-15% of battery costs, is a crucial component.
For European graphite producers, this sustained dominance presents an opportunity. The introduction of U.S. tariffs on graphite imports can benefit European producers by making their products more competitive in the American market. With higher EV prices and tariffs, European graphite producers are well-positioned to capitalize on increased demand, reinforcing their role in the evolving EV supply chain.
Further to note from the report, Bloomberg has previously suggested that there is an EV sales slowdown in the U.S., however, this report indicate it may not last long. The BloombergNEF report indicates that many countries did not experience similar slowdowns in the first quarter. Developing EV markets such as Thailand, India, Turkey, and Brazil saw record sales, while China remains the global leader in EV sales.Further to note from the report
“China still dominates the global EV market, but sales are rising quickly elsewhere too,” BloombergNEF notes. However, the report also mentions that some automakers, including Tesla, General Motors, and Ford, have reduced their near-term EV projections.
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