With a $160 billion investment, the United States and Europe will be able to reduce their dependence on electric vehicle battery supplies from China, the Financial Times reported on Monday, citing a Goldman Sachs forecast.
Demand for electric vehicle batteries could be met without China in the next three to five years, as a result of investments in the US by South Korean conglomerates LG and SK Hynix.
To reduce supply chain dependence on Chinese suppliers, investment of $78.2 billion is needed for batteries, $60.4 billion for components and $13.5 billion for lithium, nickel and cobalt mining, and $12.1 billion for refining the minerals, said Financial Times.
Korean battery makers' market share in the US will jump to around 55% in three years, up from just 11% in 2021.
Companies from China are currently dominating battery production, including mining and refining of mining materials.
Analysts say the company's dominance of China could be undone by protectionist policies in Europe and the United States, coupled with alternative battery chemicals.
Bruno Venditti and Sabrina Lam from Visual Capitalist said the 10 largest battery manufacturers in the world are Asian companies.
Chinese companies control 56% of the EV battery market share in Asia. Meanwhile, Korean companies control 26% of the market and Japanese manufacturers have 10% market share.
Contemporary Amperex Technology Co. Ltd. (CATL) is an electric car battery manufacturer from China. The company dominates the world electric vehicle battery market where currently its market share has reached 34%, an increase from 32% in 2021.