The global economy is likely to be hit with "short-term net-zero pain for longer-term gain”, as countries transition to climate-friendly clean energy use including utility-scale batteries, says a new report. The energy transition may shave 2% off global gross domestic product by 2050, but this "could be recoverable” by the end of the century, according to Wood Mackenzie’s report* – ‘No Pain, No Gain: The economic consequences of accelerating the energy transition’.   As new transition technologies such as electric vehicles, utility-scale batteries, hydrogen and carbon capture and storage come down in price over time, "there will come a point when low-carbon investments are more competitive than phased-out high-carbon alternatives”, the report said. Raw materials Economies with high renewable penetration of power generation and advanced power grids will be "likely winners” in the clean electrification revolution, the report added. "Having a national resource of the building blocks of energy transition – such as copper and battery raw materials such as lithium and cobalt – is also an advantage.” China is facing the greatest potential GDP loss in absolute terms in a 1.5 °C world, of $20tn (about £14.6tn) to 2050, the report said. "As the world’s largest carbon emitter and an energy-intensive economy, its decarbonisation challenge is colossal. But China has many advantages and, in many respects, is ‘transition ready’, producing more than 50% of the world’s solar and wind technology, electric vehicles and three quarters of all lithium-ion batteries. Exporting these to other countries will have economic benefits.” *The full report is online Related articles in our archive Lead and lithium-based batteries 'are critical to EU's clean energy transition' 'Game-changing' report on grid-scale battery tech released by US national lab

Canada is "uniquely positioned” to develop its minerals wealth and produce advanced batteries to power a new era of clean transport and renewable energy systems, according to a new report. The International Energy Agency’s (IEA) ‘Energy Policy Review Canada 2022’ says the Canadian government recognises the competitive advantage its mining industry can have in developing battery supply chains.   "Canada is uniquely positioned as one of the few countries in the western hemisphere with all the minerals and metals needed for the production of advanced batteries, and has the fourth-largest reserves of rare earth elements, which are essential components in the permanent magnets used in electric vehicle (EV) motors and wind turbines,” the report said. And IEA executive director, Fatih Birol, praised Canada’s "wealth of clean electricity and its innovative spirit”, which he said can ensure "a secure and affordable transformation of its energy system and help realise its ambitious goals”. Battery technologies According to the IEA, Canada has all it needs to manufacture advanced batteries, including domestic reserves of lithium, nickel, copper, graphite and cobalt. "Canada also boasts a strong research and development ecosystem, many start-ups in niche markets, including recycling and a sizeable automotive industry.” In addition, the IEA noted that Canada aims to use its mineral and metal resources "to attract leading battery manufacturers to establish homegrown stationary energy storage, as well as battery technologies of the future, including related to end-of-life recycling”. The IEA’s report comes just weeks after World Battery News reported that Canada’s prime minister, Justin Trudeau, was calling for the country to become a "global leader” in battery manufacturing, recycling and reuse – and to develop "a sustainable battery innovation and industrial ecosystem”. IEA's Canada 2022 report Related articles in our archive Trudeau says Canada aims to be 'global leader' in battery production and recycling Australia, US, Canada launch 'critical minerals' map to support batteries, renewables

Germany must "triple the speed” of emissions reduction and increase deployment of renewables and battery tech to deal with a "drastic deficit” in climate protection measures, the country’s vice-chancellor has said. Robert Habeck, who also serves as federal economic affairs and climate minister in the new coalition government, said existing climate protection measures were "inadequate in all sectors” – and a package of new laws would be introduced this year. Habeck said new laws would include a revision of the German Renewable Energy Sources Act (EEG) to make renewables a "matter of national security”, because the country would fall short of its CO2 emissions targets in 2022 and 2023.   "In the EEG, we are setting the course for 80% renewable electricity generation by 2030,” Habeck said. 'Sustainable batteries' Habeck said the government would also roll out initiatives to "accelerate” the country’s expansion of solar and wind energy facilities. And Habeck presented a related government report that underlined the "central importance of ensuring the availability of sustainably manufactured batteries in Europe and the raw materials required for them for the electrification of car and truck traffic”. The federal economic promotion agency, Germany Trade & Invest (GTAI), said the government was targeting 2% of land in the country to host wind energy facilities. GTAI’s CEO, Robert Hermann, said: "It's highly unusual for a German government to be this critical of the status quo and this specific about what will be done about it. All the change means major new chances for agile and innovative domestic and international companies that can help Germany reach its climate goals.” Related articles in our archive Germany's incoming coalition pledges expansion of battery tech R&D;, renewables Germany issues €437m grant boost for battery cells project by Saft, Opel, Stellantis

Companies working to develop Europe’s future battery supply chain have urged EU leaders to end "counterproductive delays” that threaten to delay the launch of a sustainable battery industry. EU environment ministers are set to meet today to review the "state of play” on discussions around the European Commission’s proposed Batteries Regulation. However, companies including Swedish battery developer Northvolt and the Automotive Cells Company (ACC) consortium, say they have been made aware of proposed changes that could delay the adoption of rules aimed at reducing batteries’ carbon footprint and mandatory supply chain due diligence. The proposed changes differ from original Batteries Regulation timelines put forward by the European Commission and could see delays of up to 66 months for the introduction of rules on carbon reduction, the companies warned.   'Needless'    The companies also fear a delay of 36 months for the phase-in of supply chain checks to safeguard against environmental and human rights abuses. In an open letter to EU environment ministers, the companies said: "By supporting such delays, governments would be showing that they do not want clean and ethical batteries, putting the entire zero emissions transition in jeopardy.” "We urge (EU) member states to reject calls for needless and counterproductive delays and support, at the very least, those timelines proposed by the European Commission, thereby ensuring the European Green Deal is built on a truly sustainable platform.” Signatories to the letter, in addition to Northvolt and ACC, include French lithium-ion battery cells developer Verkor, mining group Eramet, Talga Resources, Vulcan Energy Resources and Skeleton Technologies. Related articles in our archive Proposed EU Batteries Regulation 'fails to recognise market diversity', Eurobat warns Eurobat warns of 'unacceptable' EU bid to 'take place of experts' in setting battery standards

China’s government is to issue new regulations to boost the recycling of lithium-ion batteries from electric vehicles, state media has reported. The Ministry of Industry and Information Technology (MIIT) wants to ensure "correct” recycling processes are being followed – and to "clarify” the supervisory responsibilities of national and local agencies – to manage the rise in decommissioning of batteries from new energy vehicles, the Xinhua News Agency said. Recycling on a large scale "will greatly reduce the negative impact on the environment, while saving a lot of resources”, according to Xinhua. Decommissioned new energy vehicle batteries generally have a residual capacity of 70% to 80% that can make them suitable for reuse in energy storage and power backup systems, Xinhua said. Vehicle sales MIIT also wants to ensure the efficient disassembly and recovery of battery materials. According to Xinhua, latest data from the China Association of Automobile Manufacturers showed that the cumulative sales of new energy vehicles in China in the first 11 months of this year was close to three million – accounting for nearly 13% of China's total vehicle sales. Around 200,000 tonnes of batteries are believed to have been decommissioned last year and in 2025 the figure is estimated to be around 780,000 tonnes, according to the China Automotive Technology Research Center. World Battery News reported earlier this year that Chinese automotive battery maker, Contemporary Amperex Technology, was to invest the equivalent of nearly $5bn (£3.6bn) in creating a lithium-ion battery materials recycling facility in China’s central province of Hubei. Related articles in our archive CATL invests $5bn in China EV batteries recycling facility China plans more 'battery swap' points in post-pandemic EV sales push

Canada’s prime minister has called for the country to become a "global leader” in battery manufacturing, recycling and reuse. Justin Trudeau’s ambition for Canada to develop "a sustainable battery innovation and industrial ecosystem” is set out in one of a series of newly-published mandate letters he sent to cabinet ministers, following his re-election last September. In his letter to natural resources minister, Jonathan Wilkinson, Trudeau directed him to work with cabinet colleagues to "develop and launch a 'Canadian Critical Minerals Strategy' to supply the green and digitised economy”. Trudeau also called for improved "critical minerals supply chain resiliency”, in collaboration with key trading partners, to position Canada "as the leading mining nation” for raw materials key to supporting industries such as battery manufacturing for electric vehicles and energy storage. 'Battery optimisation' "In support of these efforts, you will work with stakeholders to identify new strategic priorities, including future battery types, ways to optimise batteries for cold weather performance and long-duration storage, and applications in heavy-duty transportation,” Trudeau said. The prime minister also reiterated plans for the launch of a ‘Canada-US Battery Alliance’. World Battery News reported earlier this year that the US and Canada had agreed to jointly develop supply chains to support a new generation of battery development and production – and to expand initiatives that support renewable energy storage and "zero-emissions vehicles”. Trudeau held a virtual summit in February with US president, Joe Biden, following calls from battery industry leaders in both countries to recognise the role of advanced battery technologies in meeting climate and energy targets. Related articles in our archive Australia, US, Canada launch 'critical minerals' map to support batteries, renewables Biden, Trudeau outline roadmap to secure supply chains for batteries and renewable energy storage