Lithium battery production is in short supply -Lithium - Ion Battery Equipment

Lithium battery production is in short supply -Lithium - Ion Battery Equipment

Wood Mackenzie recently released the latest research report Globallithium-ionbatterysupplyanddemandupdate:Morebutnotenough. The report pointed out that in 2021, the global installed capacity of batteries for electric vehicles will increase by about 100% to nearly 300GWh; at the same time, the global installed capacity of energy storage will almost triple year-on-year to 28GWh. The surge in demand has driven manufacturing output expansion and technological transformation.(Lithium - Ion Battery Equipment)

important data

■In 2021, global battery production will increase by 35% to 540GWh, but supply is still in short supply and there is still a gap in battery supply.

■my country currently accounts for 90% of global battery production, and Europe and North America each account for 5%.

■Manufacturers embarked on a new round of production expansion in 2021. By 2030, the annual output of 300 manufacturing plants will exceed 5,500GWh.

■With the advantages of higher safety and lower cost, lithium iron phosphate (LFP) batteries will increase their market share from 17% in 2020 to 20% in 2021.

Global lithium battery supply tightness will ease in 2023

As batteries are widely used in electric vehicles (EV), energy storage systems (ESS) and electronic products, the global demand for lithium batteries has accelerated: the demand in 2021 has exceeded 550GWh, due to strong market demand and rising raw material prices, supply side Gap appears. Lithium battery demand is expected to continue to rise, with demand exceeding 3,000GWh in 2030. Under the Wood Mackenzie base case scenario, the battery supply gap will ease in 2023.

Global lithium battery supply and demand

Asia Pacific dominates global battery production

The Asia-Pacific region accounts for up to 90% of global battery production. In 2021, my country's output in operation has exceeded 800GWh, and many manufacturing companies also plan to expand production, which will further consolidate my country's dominant position in global battery manufacturing. About 80% of production in Japan and South Korea is already on stream, but neither country has announced plans for larger domestic production expansions in 2021.

Zero-emission transport strategy boosts battery production

In 2021, the United States, Europe, my country, Japan and South Korea have all announced policies that will benefit the development of the electric vehicle market, which will undoubtedly stimulate the development of the lithium battery market. The U.S. issued an executive order in August mandating that 50 percent of all new passenger cars and light trucks sold in the country by 2030 must be zero-emission vehicles. The European Union is more ambitious, planning to cut average new car emissions by 55% by 2030 and a further 100% by 2035.

my country's battery suppliers to invest in new production capacity of more than 3,000GWh in 2021

In response to zero-emission mobility strategies, global battery makers have scrambled to start expanding production – with 300 manufacturing plants expected to produce more than 5,500GWh by 2030. Among them, Chinese manufacturers alone will invest in new production of more than 3,000GWh in 2021. According to the Wood Mackenzie database, according to the published planned production statistics, the actual production production of the world's top 15 manufacturers in 2021 exceeds 200GWh, and the cumulative production has reached 600GWh. Another 3,000GWh of production is planned or under construction.

Lithium iron phosphate battery has increased market share by virtue of its price advantage

In previous years, the nickel-cobalt-manganese (NCM) ternary lithium battery had the highest market share in the electric vehicle and energy storage system market due to its convenient access and mature technology, and its market share in 2021 will still reach half. However, due to its large cost advantage, long service life and high safety, lithium iron phosphate batteries have begun to grab the market and become an attractive choice in the field of power supply and energy storage. We expect that the market share of lithium iron phosphate batteries will surpass that of nickel-cobalt-manganese ternary lithium batteries in 2028.



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