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Lithium-ion Batteries for Electric Vehicles: THE U.S. VALUE CHAIN

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The global motor vehicle industry is rapidly steering away from the internal combustion engine. Electric vehicles are increasingly attractive for their potential to reduce greenhouse gases and decrease dependence on oil. By 2020, more than half of new vehicle sales will likely consist of hybrid-electric, plug-in hybrid, and all-electric models. For automakers, the key to this huge shift will be lithium-ion batteries. While 96% of all hybrids available on the world market today run on nickel metal hydride batteries, within 10 years, 70% of hybrids, and 100% of plug-in hybrid and all-electric vehicles, are expected to run on lithium-ion (Deutsche Bank, 2009). If the United States is to compete in the future auto industry, it will need to be a major player in lithium-ion batteries.

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