Wood Mackenzie analysts assessed the state of the lithium-ion battery market and prospects for its development in the current decade. According to them, supply will not catch up with demand until next year, and by 2030 the total production of batteries will increase more than fivefold compared to 2021 to 5500 GWh.
Currently acc sourcethe electric vehicle market consumes up to 80% of all lithium-ion batteries produced. High hydrocarbon fuel prices are forcing more and more new modes of transport to switch to electric traction, causing demand to grow faster. The battery shortage will not be resolved this year, and an improvement is not expected until 2023 at the earliest.
Battery manufacturers try to meet the demand by continuously expanding their production base. This year they had to deal with rising raw material prices, breaking the long-standing trend towards consistent cost reductions for traction batteries. Among all traction battery suppliers, the Chinese company CATL, which already controls a third of the market, has the leading rate of expansion of the production base. Other manufacturers are preparing to set up new companies, either alone or in alliance with major players in the automotive market. Many new declarations of intent will be made this year.