Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 911

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 911
---
% of lithium, 30% of cobalt and 10% of nickel demand was for electric vehicle batteries. Only five years prior, these shares were around 15%, 10% and 2%, respectively. Reducing the need for critical materials will be important for supply chain sustainability, resilience, and security, especially given recent price developments for battery material. New alternatives to conventional lithium-ion are on the rise. The share of lithium-iron-phosphate (LFP) chemistries reached its highest point ever, driven primarily by China; around 95% of the LFP batteries for electric LDVs went into vehicles produced in China. Supply chains for (lithium-free) sodium-ion batteries are also being established, with over 100 GWh of manufacturing capacity either currently operating or announced, almost all in China. The electric vehicle supply chain is expanding, but manufacturing remains highly concentrated in certain regions, with China being the main player in battery and electric vehicle component trade. In 2022, 35% of exported electric cars came from China, compared with 25% in 2021. Europe is China’s largest trade partner for both electric cars and their batteries. In 2022, the share of electric cars manufactured in China and sold in the European market increased to 16%, up from about 11% in 2021. Electric vehicle supply chains are increasingly at the forefront of electric vehicle-related policymaking to build resilience through diversification. The Net Zero Industry Act, proposed by the European Union in March 2023, aims for nearly 90% of the European Union’s annual battery demand to be met by EU battery manufacturers, with a manufacturing capacity of at least 550 GWh in 2030. Similarly, India aims to boost domestic manufacturing of electric vehicles and batteries through Production Linked Incentive (PLI) schemes. In the United States, the Inflation Reduction Act emphasizes the strengthening of domestic supply chains for electric vehicles, electric vehicle batteries and battery minerals, laid out in the criteria to qualify for clean vehicle tax credits. As a result, between August 2022 and March 2023, major electric vehicle and battery makers announced cumulative post-IRA investments of at least USD 52 billion in North American electric vehicle supply chains – of which 50% is for battery manufacturing and about 20% each for battery components and electric vehicle manufacturing. Annex D-1-5 Hybrid and Electric Vehicle Manufacturing Industry 6 Industry Definition This industry primarily manufactures hybrid and electric automobiles that use one or more electric