Global EV Battery Market To Increase Fivefold To $616 Billion In 2035

CIOTechOutlook Team | Wednesday, 12 April 2023, 11:28 IST

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A market tracker predicted on Wednesday that the global market for electric vehicle (EV) batteries will rise quickly to $616 billion in 2035, with China's production likely to decline significantly in the wake of changes to EV-related policies in the US and Europe.
 
According to a report published by SNE Research, a Seoul-based energy industry tracker, the expectation represents a fivefold rise from the $121 billion predicted for this year.
 
Demand for EV battery production is expected to reach 5.3 terrawatt hours (TWh) globally in 2035, compared with 687 gigawatt hours (GWh) predicted for 2023. Source IANS
 
According to the survey, the combined manufacturing capacity of the top six battery manufacturers worldwide, including LG Energy Solution, Samsung SDI, and SK On in South Korea, is expected to reach 5 TWh in 2035.
 
As per report, North America is predicted to produce 31% of the world's EV batteries, a dramatic increase from the region's present 6% share, as battery manufacturers increase production there to be eligible for US tax credits under the US Inflation Reduction Act.
 
While the European Union pushes for similar policy updates to support its regional EV markets, output in Europe will also increase to 27% from 12%.
 
Because to this, China's production will probably decline by roughly 50% to 38% in 2035 from 75% in 2022.
 
Over 80 million EVs, or 90% of all automobiles sold globally by 2035, will be electric vehicles.
 
In the whole automobile market, EVs made up around 13 percent of sales last year, up from about 1 percent between 2015 and 2017. In the same time frame, demand for EV batteries increased from 28 GWh to 482 GWh.
 
The research outlet also predicted that in 2035, the market for secondary cells will account for roughly 10–13% of the envisioned solid state batteries, a next-generation cell being developed by battery manufacturers.
 
The capacity of its commercial output is expected to reach 950 GWh by 2030, when it is expected to begin in earnest.
 
As opposed to the liquid and gel electrolytes used in lithium-ion batteries, solid-state batteries use a solid electrolyte, which has lower fire risks.
 
Moreover, they have a greater energy density, allowing for a greater driving range.
 
In 2027, Samsung SDI hopes to start making its solid-state batteries for sale. Polymer-based and sulfide-based solid-state batteries will begin to be mass produced by LG Energy Solution in 2026 and 2030, respectively.
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