The growth in global demand for batteries

The global demand for batteries is driven largely by the objective to reduce climate change through electrification of mobility and the broader energy transition. Experts have projected that the entire lithium-ion battery chain, from mining through recycling, may grow by over 30 % annually.
Batteries for mobility applications, such as electric vehicles (EVs), have been expected to account for the vast bulk of demand in 2030, due to regulatory shifts toward sustainability, with new targets and guidelines, such as:
-Europe’s Fit for 55 program and ban of internal combustion engine vehicles by 2035.
-India’s Faster Adoption and Manufacture of Hybrid and Electric Vehicles Scheme.  
-China currently delivering more than 60 % of EV’s on the global market and having introduced general Corporate Sustainability Reporting Standards. 
-In USA, the US Inflation Reduction Act was also considered a major driver but is now reduced by the new politics, focusing again on fossil energy and eliminating measures such the “electric vehicle (EV) mandate”.
Possibly this change may influence the priorities in some other countries too.

In selected countries, up to 90 % of the total passenger car sales have been expected to involve EVs by 2030.
China currently represents about 40% Li-ion demand and most battery-chain segments are already mature in that country. Due to a general trend toward localization of supply chains together with the regulatory changes, growth is now expected to be globally highest in Europe.

It has been forecasted that in total more than 120 new battery factories are needed globally before 2030. But there are challenges as rising capital costs, geopolitical instability and supply chain disruptions as well as shifts in market demand. Time will show to which extent the very high predictions actually come true.

Active materials and cell manufacturing may have the largest business value. The predominate critical materials for battery cells are lithium and cobalt, so shortage of these materials is presently of enormous concern.
Recycling is an option to mining for the critical materials but is expected to be relatively small on short term. 
On longer term, it is projected to grow more than three-fold decade, when more batteries reach their end-of-life.

Let alone batteries for EVs and larger mobility applications as ships as well as for storage, there is obviously growing demand also in other sectors as consumer electronics, including all sorts of fixed and mobile electronic devices, and even for micro batteries in wearables such as for medical use/health care and personal monitoring.   

For information about the sources this article, please contact the editor

(This article is based on information available on internet and edited by T.Sollie)

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