The lithium industry needs $42 billion in investment.

To meet the demand for a vital battery material, the global lithium sector will need $42 billion in investment by the end of the decade, and attempts to develop supply chains outside of China will be significantly more expensive.

Europe, North America seek to develop their own supply chains

Europe and North America are attempting to minimize their reliance on Chinese imports by developing their own lithium manufacturing, but this method will cost roughly twice as much money.

Economic concentration, high levels of knowledge, and reduced labor and energy costs have given China a stranglehold on the lithium supply chain.

With more than $3 billion in subsidies, the Biden administration is pushing to speed up the production of basic metals for batteries in the United States.

Meanwhile, in this year’s budget, Canada has set aside up to 3.8 billion Canadian dollars ($2.9 billion) to develop a domestic supply chain for essential metals.