Powering the Future 2025

Introduction1 A circular battery economy is needed to increase resilience, minimize environmental and social harms, and create equity in the battery value chain. The demand for EVBs1 is rising, and with it, the need for critical minerals and other raw materials. According to the International Energy Agency (IEA), the global annual demand for EVBs is projected to grow to 5.5 terawatt-hour (TWh) in 2030 and 9.1 TWh by 20352 in a “net-zero emissions by 2050” scenario.1.1 The implications of rising demand for EV batteries FIGURE 1 0246810 2023 STEPS APS NZE STEPS APS NZE2030 2035TWh/year Europe China United States Others GlobalGlobal annual demand for EV batteries in three scenarios Note: The IEA forecasts annual demand for EVs in three scenarios: 1) The Stated Policies Scenario (STEPS) is based on the current policy landscape; 2) The Announced Pledges Scenario (APS) includes announced climate targets from countries around the world; and 3) The Net Zero Emissions by 2050 Scenario (NZE) is based on the change needed in the global energy sector to achieve net-zero carbon dioxide (CO2) emissions by 2050 Source: IEA, Global EV Outlook 20243 Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 6