Energy
EV BATTERY INVESTMENTS CHARGE AHEAD The global push toward a sustainable future has ignited an unprecedented surge in battery investments. This rapid growth has introduced new challenges, however, particularly impacting the stability of the battery supply chain. “Global efforts to combat climate change are driving a surge in battery investments with the aim to de-risk supply chains that are historically highly concentrated in Asia, particularly China,” says Mirko Woitzik, global director of intelligence solutions at Everstream Analytics, which monitors global investments in battery facilities. Sustainability concerns have prompted a boost in localization efforts for battery production in an attempt to strengthen the resilience of supply chains, most notably for the automotive sector. Since 2021, the United States has invested more in new battery production plants than any other country, with China following far behind. This trend is expected to continue. Everstream’s projections show that North America will keep investing in new battery production plants at a higher rate than any other region until 2030. Europe is also on track to exceed Asia’s investments in new plants by 2030. U.S. automakers such as Ford, which currently leads the way in global investments in battery plants by companies worldwide, are driving this growth. Other U.S. and European automakers, including General Motors, Volkswagen, and Mercedes-Benz, are also investing in new battery plants at unprecedented rates. These investments prompt Everstream to project significant shifts in global battery procurement, diffusing concentration of activities and, in turn, increasing resilience to external shocks in certain parts of the world.
Here are the top five energy sources in the United States that keep the lights on and wheels turning. 1. Petroleum (crude oil and natural gas liquids). Petroleum makes up 36% of the U.S. energy mix. Concerns about environmental impact and dependence on foreign oil, however, are driving efforts toward cleaner alternatives. 2. Natural gas. This clean-burning fossil fuel makes up 33% of U.S. energy consumption. Natural gas is a popular choice for heating homes and businesses due to its efficiency and lower emissions compared to coal, but the extraction process (fracking) raises environmental concerns. 3. Renewables. Wind, solar, hydroelectric, biomass, and geothermal sources are collectively making a significant push, currently contributing 13% of U.S. energy. 4. Coal. Coal has seen its share decline to 10% in recent years. While it remains a relatively cheap and abundant resource, concerns about air pollution and greenhouse gas emissions are leading to a shift away from coal-fired power plants. 5. Nuclear power. Providing a reliable source of baseload electricity, nuclear power plants account for 8% of U.S. energy consumption. Concerns about safety and nuclear waste disposal continue to be debated. POWERING THE NATION Around 40% to 60% of a manufacturing company’s energy and carbon footprint can reside upstream in its supply chain—from raw materials, transport, and packaging to manufacturing processes—but this number can be as high as 80% for some sectors. —U.S. Department of Energy
14 Inbound Logistics • June 2024
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