Analytics Battery production is entering a period of rapid growth
Hardware

Analytics: Battery production is entering a period of rapid growth and lithium shortage is being overcome

The conversion to “green” energy is contributing to the traffic turnaround worldwide. According to TrendForce, the new energy transport industry is experiencing rapid growth, leading to an increasing demand for batteries. By 2024, the installed capacity of traction batteries is expected to reach the “terawatt” level and exceed 3 TWh by 2030, with 45% from Chinese manufacturers.

    Image source: CHUTTERSNAP/unsplash.com

Image source: CHUTTERSNAP/unsplash.com

In response to growing demand, global suppliers are expanding their production. Given the wide range of applications for electrochemical power supplies, the pace and scale of production growth far exceed previous periods. According to TrendForce statistics, ten leading battery manufacturers including CATL, LG Energy Solutions, BYD, CALB, Samsung SDI and Panasonic plan to produce batteries (including traction batteries) with a total capacity of 4.2 TWh by 2025. Leading Chinese manufacturers in this segment account for around 3.1 TWh.

    Image source: TrendForce

Image source: TrendForce

According to TrendForce, the battery market is booming due to the increase in the fleet of electric vehicles and the introduction of electrochemical battery storage, leading to an imbalance between supply and demand for the key raw materials used to manufacture batteries – lithium, cobalt and nickel.

The growth in supply does not meet the needs of the industry, which limits the speed of its development, which will lead to an increase in the cost of manufacturing batteries in the coming years. Therefore, in recent years, manufacturers of batteries and even electric vehicles have actively invested in the extraction of mineral resources necessary for the production of energy carriers.

    Image source: TrendForce

Image source: TrendForce

So far, there is little to be expected in raw material prices for the production of lithium-ion batteries, especially lithium carbonate and lithium hydroxide. But the high lithium price will accelerate the expansion of the sodium-ion battery market for energy storage and low-cost electric vehicles. At the same time, the mining and processing links in the production chain are investing more in the production of lithium, cobalt and nickel, which will help solve the problem of traditional resource shortages in the future.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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