Lithium Battery Production By Country: Top 12 Countries

In this article, we discuss lithium battery production by country. If you want to read about some top countries in terms of lithium battery production, go directly to Lithium Battery Production by Country: Top 5 Countries.

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Several countries are key players in the battery tech manufacturing industry and claim a major share of the global market. These countries are home to large battery manufacturers, and often have well-developed supply chains and infrastructure to support the production of batteries on a large scale. Some of the key battery tech manufacturing countries include China, Japan, South Korea, the United States, Germany, and India. These countries have big EV firms like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV). 

We talked about the 10 most advanced battery technologies in a separate article in detail. Battery tech manufacturers are situated around the world, and they produce a wide range of battery types, including lithium-ion batteries, lead-acid batteries, and nickel-metal hydride batteries, among others. Many small countries are also involved in the production and development of batteries. As technology is emerging, many countries across the globe are beginning to enter the battery manufacturing industry. 

Chinese firms dominate the electric vehicle (EV) battery market, accounting for 56% of the market share. Four of the ten largest battery manufacturers are based in China. South Korean companies and Japanese firms also have a significant presence in the market. Several major battery companies are based in the United States, including QuantumScape, A123 Systems, Enovix, SES AI, and Amprius Tech. 

Considering lithium reserves, Chile has the largest known reserves of lithium in the world, with a total of 8 million tons. This puts it ahead of other countries with significant reserves, such as Australia (2.7 million tons), Argentina (2 million tons), and China (1 million tons). In Europe, Portugal also has smaller deposits of lithium. 

The global battery technology market size is expected to grow from $95.7 billion in to $136.6 billion by at a compound annual growth rate of 7.4%. The adoption of electric and hybrid vehicles and the increasing usage of wearable devices are responsible for the growth of the battery technology market size. Some other sectors, such as solar and wind energy systems, are also emerging and the world is making its way towards environment-friendly energy.

The global adoption of electric vehicles (EVs), falling battery prices and increased investment by top automobile OEMs are what are fueling the growth of the total EV battery industry. Additional factors include increased investments in expanding lithium-ion battery capacity, the expansion of battery-as-a-service systems, and rising acceptance of electric mobility in emerging nations, all of which present major market prospects.

The factors that limit the global EV market include the less energy-dense batteries and probable shortage of lithium mining capacity, and possible safety concerns with EV batteries are posing a threat to the market's expansion for EV batteries. Considering the EV battery production by country, with a 56% market share, Chinese companies lead the industry. China is home to many in the top 10 battery producers list. Japanese and South Korean businesses are likewise well-represented in the sector. Furthermore, Chinese battery is also leading in the battery supply chain, mining metals and refining battery components, etc.

Korean companies contributed a 26% share in global EV battery production last year. Samsung SDI, SK On and LG Energy Solutions are a few notable contributors to the market. The aforementioned companies provide EV batteries to automotive giants such as Tesla, Ford Motors and General Motors. Japanese companies are another key player in EV battery production with 10% of the total EV production worldwide. Companies such as Panasonic ranks 4th among the world&#;s largest battery-producing companies.

Around 948 GWh of lithium-ion (Li-ion) battery capacity is currently deployed globally. Out of this, the global EV battery production capacity is almost 274 GWh. If the recent trends in the adoption of EVs and E-mobility are considered, several thousand GWh of batteries will also be needed to accommodate the tens of millions of EVs that will be added each year.

Between and , the demand for Li-ion batteries from light vehicles will expand at a compound annual growth rate (CAGR) of about 40%, reaching roughly 2,050 GWh as predicted by S&P Global Mobility. In the same time frame, installed battery capacity will increase by 23.5% CAGR to 3,371 GWh in .

The Asia-Pacific region again takes the lead when the largest lithium battery producers are concerned. Several major companies in the list of largest lithium battery producers are from China. Notable names include CATL and BYD with a total production capacity of 137.7 GWh and 51.5 GWh respectively in the year . The US was able to produce 44 GWh of lithium-ion batteries in , and by , that capacity is expected to increase to 91 GWh. The development of technology in the US has had a significant impact on battery production as well. The US provided the majority of cutting-edge battery technology.

Our Methodology

These were picked from a careful assessment of the battery industry. The details of each battery tech country are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions. The countries have been ranked according to their share of global lithium-ion battery manufacturing capacity in . 

Lithium Battery Production By Country: Top 12 Countries

Lithium Battery Production by Country: Top Countries

10. Australia

Share of global lithium-ion battery manufacturing capacity in : 0.1%

In , Western Australian mines produced about half the world's lithium, at an estimated 55,000 metric tons. Recent years have seen an increased number of lithium battery manufacturing facilities begin their production in Australia. This lithium is used for electric vehicles and other product batteries. Australia&#;s lithium production is set to increase by 24.5% to 68.45 thousand tonnes in . Lithium output is expected to increase at a compound annual growth rate of 14.2% to 116.24 kt in . 

Pilbara Minerals is the biggest lithium mining company in Australia. Pilbara produces over 377,000 metric tons of lithium every year. Greenbushes is Australia's largest lithium mine, of the 55,000 tonnes of lithium mining in the country in . In Australia has supplied roughly half of the world&#;s lithium.

Australia also has dozens of new battery startups. Evergreen, Greensync, Carnegie Clean Energy, RayGen, Bell Resources and Graphene Manufacturing Group Ltd are a few famous ones. Energy Renaissance produces climate-optimized lithium-ion batteries for domestic and commercial users in Australia. The biggest battery in the world is in Australia named The Victorian Big Battery. This battery can store enough energy to power more than one million Victorian homes for 30 minutes.  The battery has a capacity of 100 MW/129 MWh and can provide critical grid support services, such as frequency control and ancillary services, to help stabilize the grid during times of high demand.

Just like Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Australia is also home to some of the largest battery firms in the world. 

9. United Kingdom

Share of global lithium-ion battery manufacturing capacity in : 0.3%

UK has several EV battery companies such as British Volt, Aceleron, Williams Advanced Engineering, Zenobe, Moixa and Oxis Energy etc. As the world is gradually shifting from fossil fuels to renewable energy resources, the UK government plans to ban the sale of diesel and petroleum cars by . Hence, there is a growing demand for batteries in automobiles, aerospace, electrical utilities and other related sectors. 

The government of the UK has promised nearly £500 million in the next four years for mass-scale production of batteries. British Volt has plans for a £2.6bn Gigafactory in Northumberland on the site of the former Blyth Power Station. The Company will produce 300,000 lithium-ion battery packs each year. These will be supplied to the automobile electric industry. 

8. Sweden

Share of global lithium-ion battery manufacturing capacity in : 0.6%

Sweden is home to several EV battery companies. Sweden's auto market recorded an electric vehicle share of 46.1% in August as fully electric cars grew their shares. In August, Volvo Group began the process to establish a large-scale battery cell factory in Sweden. The company plans to gradually increase capacity and reach large-scale series production by . The battery cells will be manufactured specifically for commercial vehicle applications, busses, trucks and electric drivelines for other different applications. Volvo said that by , at least 35% of their products will be electric. 

Northvolt AB is a Swedish battery maker and plans to deliver batteries with an 80% lower carbon footprint. Northvolt has a target of 150GWh for annual cell output by . Northvolt Ett will produce 16GWh of battery capacity per year. The company will scale up its production at a later stage to potentially 40GWh. 

7. Germany

Share of global lithium-ion battery manufacturing capacity in : 1.6%

When it comes to technology and innovation in the electric vehicle sector, Germany is one of the leading countries in it. The country is home to some of the best electric vehicle makers including Volkswagen and Tesla. Millions of tons of lithium are mined in places far away from Germany to produce lithium-ion batteries every year. These batteries are used in electric vehicles, grid energy storage and wearable technology. 

Scientists at KTI have invented a minimally invasive technology to mine lithium in geothermal plants in Germany. Using this technology thousands of tons of lithium could be extracted from the German and French Upper Rhine trench every year.

The government of Germany has approved a plan to spend $6.1 billion over three years to increase the number of charging points for electric vehicles across the country. The country will increase its charging stations by 14 times. Germany has 70,000 charging stations now and plans to reach 1 million by . The country also plans to have fifteen million electric vehicles on the road by . Currently, there are 1.5 million electric vehicles in Germany. 

6. Japan

Share of global lithium-ion battery manufacturing capacity in : 2.4%

Japan has highly profited from the increasing demand for EV batteries and consumer electronics. Japan is producing batteries worth nearly 930 billion Japanese yen (JPY) yearly. The battery producer covers the entire battery industry by producing batteries from watch button cells to lead acid car batteries. Japan has produced more than JPY 436 billion worth of batteries for electric vehicles. Nickel metal hydride batteries are worth 209 billion JPY. Lead acid batteries made by Japan are worth JPY 154 billion. 

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Some of the world&#;s biggest battery companies are located in Japan including Panasonic, Murata, Kyocera, Toshiba, ELIIY Power, FDK, Mitsubishi and EV Energy. Panasonic has a market share of 10%. In , it was the only company to supply batteries to Tesla. It is working with Tesla to start production of its new battery, which is more than double in diameter compared to standard batteries. Panasonic has shipped more than 200 billion batteries across the globe since . The company will triple its battery production by . 

In addition to Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Japan is also home to some of the largest battery firms in the world. 

Click to continue reading and see Lithium Battery Production by Country: Top 5 Countries.

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Disclosure. None. Lithium Battery Production By Country: Top 12 Countries is originally published on Insider Monkey.

The ongoing paradigm shift in the mobility segment toward electric vehicles (EVs) created a need to build out the entire value chain. Consequently, demand for materials like lithium and lithium-ion batteries has increased meaningfully in recent years. Compared to consumer electronics, EV batteries can contain thousands of times more lithium by weight and anywhere from tens to thousands of times more lithium-ion cells. While many investors are familiar with dedicated electric automakers such as Tesla and Rivian, there&#;s an entire ecosystem of companies further up the value chain making the EV revolution possible.

In this piece, we highlight four key players in the lithium and battery space. It serves as a follow-up to our piece by the same name.

• BYD: Vertically integrated battery and EV manufacturer with top market share in both segments
• Arcadium Lithium: New lithium major following the merger between Allkem and Livent
• Albemarle: Global lithium producer with ambitious expansion plans
• LG Energy Solutions: Critical battery supplier for ex-China automakers

BYD: The Integrated Battery Maker

BYD is a Chinese battery maker turned automaker that sold more battery electric vehicles (BEVs) than any other company in Q4 .1 BYD is unique for its dominance as a manufacturer of EVs and batteries, and for a virtually unmatched level of vertical integration. In , BYD was the second largest battery maker and the second largest BEV producer by market share.2,3 If plug-in hybrid sales are included, BYD was the largest seller of EVs by a wide margin. No other automaker possesses meaningful market share in the global EV battery industry.

BYD has been able to keep costs down and sell increasingly inexpensive models thanks to its in-house capabilities in batteries and even semiconductors. The BYD Seagull at USD 11,400 and Dolphin at USD 31,000 are some of the least expensive EV models in the world.4,5 Integration has also helped BYD improve margins even with increasing competition in the Chinese automobile market. Between Q3 and Q3 , BYD&#;s net profit margin increased by nearly 70%, compared to net margin across the Nasdaq OMX Global Automobile Index, which declined about 32%.6

Outside of internal usage, BYD also sells its batteries under its Blade series to automakers such as FAW, Toyota, Volvo, and Ford.7 As an iron-based phosphate (LFP) specialist, BYD devotes close to 100% of its capacity toward this chemistry.8 LFP batteries have become an important portion of the lithium-ion chemistry mix because of their relatively low cost and long lifespans compared to higher energy density architectures. However, very little LFP expertise exists outside of China, and as automakers look for ways to improve unit economics, they may have to partner with suppliers such as BYD.

BYD is likely to enhance its efforts to expand globally and to continue to build on its already market-leading integration. About 8% of BYD&#;s unit sales were from exports in , a share that we expect to grow.9 In late , the company confirmed plans to build a factory in Szeged, Hungary in a clear bid to expand into Europe.10 At the time of writing, BYD was also reportedly in talks with lithium miner Sigma Lithium regarding a possible supply agreement, joint venture, or acquisition.11

Arcadium Lithium: A New, Fully Integrated Lithium Major

Finalized in early January , the merger of Livent and Allkem is the largest such event in the lithium industry&#;s history. The combined entity, Arcadium Lithium (&#;Arcadium&#;), joins Albemarle, Ganfeng, and Tianqi as lithium producers with offerings across all major lithium product segments, including spodumene, carbonate, and hydroxide.12 By Arcadium&#;s estimates, the company will be the third largest lithium producer by capacity in .13

Before the merger, Allkem focused on lithium production from conventional brine and hard rock mining, specifically from assets in Argentina, Australia, and Canada. Livent was more of a dedicated lithium refiner and specialty chemical producer with operations in Argentina, Australia, Canada, the United Kingdom, and China. Synergies between these business lines are expected to unlock cost savings while the placement of assets could improve logistics.

The geographic footprint of Arcadium&#;s supply chain could position the company to benefit from the Inflation Reduction Act (IRA) in the United States. The IRA provides various incentives to boost EV and battery manufacturing, but it requires a minimum threshold of minerals to be produced or processed domestically or in countries that maintain fair trade agreements with the United States. Much of Arcadium&#;s production capacity is likely to align with IRA sourcing requirements, which could boost the attractiveness of the company&#;s lithium for customers downstream who are trying to become eligible for the incentives.

Arcadium could also be a name to watch in the emergent direct lithium extraction (DLE) segment. DLE is an umbrella term referring to technologies that produce lithium from brine resources without the need for prolonged evaporation pond usage. The technology remains in its early stages, but pilot programs show promising water and resource savings. Innovations in DLE could drastically improve the economics of existing brine operations and expand the amount of lithium deposits that are viable for development around the world. Livent has operated a DLE-augmented process in Argentina since and Arcadium is slated to expand its efforts in this field.14 In December , Livent acquired a minority stake in the parent company of DLE technology firm ILiAD Technologies and plans to license the company&#;s tech in future endeavors.15

Albemarle: A Growing Giant

In any given year, Albemarle competes with SQM and Ganfeng for the crown of largest lithium producer in the world. As of September , Albemarle boasted the world&#;s largest lithium salt capacity and was the most valuable lithium producer by market capitalization.16 The company operates extraction and conversion facilities around the world and has access to some of the highest-grade lithium resources, including Greenbushes in Australia and the Salar de Atacama in Chile.17,18

Even as the world&#;s top lithium producer, Albemarle maintains an aggressive project pipeline. The company plans to boost lithium production and conversion capacity by as much as 3x between and , which aligns with the company&#;s long-term expectations for lithium demand.19 Albemarle expects global lithium demand to grow by about 3.1x between and , with more than 80% of that demand growth likely to come from EV applications.20

Expansions to current lithium projects could be Albemarle&#;s growth engine in the coming years. In the near term, expansion efforts at Greenbushes and Wodgina in Australia and improved efficiency from various South American projects are expected to boost output. In the second half of the decade, Albemarle expects to recognize more contributions from its American assets, namely King&#;s Mountain, North Carolina, and Magnolia, Arkansas.

Currently, Albemarle operates the only lithium-producing mine in the United States, the Silver Peak mine in Nevada, and the company will likely be involved in the U.S. government&#;s efforts to ramp up critical material production.21 Since , Albemarle has received $240 million in government grants and loans to support the development at King&#;s Mountain.22,23

Additionally, high-profile offtake agreements and partnerships are likely to remain a focus for Albemarle. In May , the company announced a definitive agreement with Ford to supply 100,000 metric tons of battery-grade lithium hydroxide between and .24 This deal would be enough to supply as many as 3 million EVs.25 In September , Albemarle reached an agreement with Caterpillar to supply the construction and mining equipment manufacturer with lithium for battery-powered machinery.26

LG Energy Solution: A Key Supplier for Growing EV Markets

Today, three-plus years after its September spin-off from LG Chem to accommodate rising demand for batteries from the auto industry, LG Energy Solution sits just behind BYD as the third largest EV battery maker by market share.27 The company has established a global operational presence with manufacturing capacity in South Korea, China, Poland, and the United States, as well as joint ventures with automakers such as GM, Honda, and Hyundai.28,29

The company&#;s top clients by battery volume include strategically significant automakers like Volkswagen, Tesla, Stellantis, GM, and Ford.30 Battery and EV research provider Rho Motion expects these automakers to all be top 10 BEV producers in , together comprising 39% of the global market.31 LG Energy Solution also recently signed a long-term agreement to supply Toyota with American-made nickel-based based batteries from .32

LG Energy Solution&#;s customer base also positions the company to benefit from further EV penetration in less mature markets. China accounted for nearly 60% of global EV sales in and is likely to remain the largest market by volume into perpetuity.33 However, because China was an earlier EV adopter, growth rates in other major EV markets could be higher, including North America and Europe, home to most of LG Energy Solution&#;s customers. Between and , EV sales in North America and Europe are forecast to grow at compound annual growth rates of 27% and 20%, respectively, compared to 14% in China.34

During its Q4 earnings call, the company reported FY operating profit of KRW 2.2 trillion (USD 1.6 billion), which represented 78% year-over-year growth.35 Notably, about 31% of this operating profit was attributable to IRA incentives.36 Given LG Energy Solution&#;s manufacturing presence in the United States, management believes IRA incentives may continue to benefit the company.

Conclusion: The Electric Mobility Opportunity Is More Than the EV

The EV value chain is vast, and the four companies highlighted in this piece have been significant players in its growth. Along with these firms, many other lithium miners and battery producers are enabling the transition toward EVs. We believe the lithium and battery industries remain in their early stages, but we expect them to grow significantly as electrified mobility options displace conventional means of transportation. For investors, understanding the full scope of how an EV makes its way to the road can help them capture paradigm-shifting growth in their portfolios.

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