The US and Europe can cut their dependence on China for electric vehicle batteries through more than $160bn in new capital expenditure by 2030, Goldman Sachs has forecast.
EV batteries are one of the core technologies giving rise to concern across western capitals over dependence on China. Following years of deep state support and a desire by Beijing to cut its own reliance on oil imports, China produces three quarters of the world’s batteries and also dominates production of their materials and components.
However, according to a report to clients, seen by the Financial Times, the investment bank’s analysts believe a stark pivot to protectionism in Washington and Brussels, combined with an unprecedented spending spree by non-Chinese companies, have the potential to extricate the west from its reliance on Beijing over the next seven years.
