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 have emerged as major players in the battery tech manufacturing sector, holding substantial shares of the global market. These nations boast large battery manufacturers and have established extensive supply chains and infrastructure to facilitate large-scale battery production. Prominent countries in battery tech manufacturing include China, Japan, South Korea, the United States, Germany, and India. These nations are home to leading EV companies such as Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV).
We delved into the 10 most advanced battery technologies in another detailed article. Battery tech manufacturers are spread across the globe, producing various battery types, including lithium-ion, lead-acid, and nickel-metal hydride batteries. Even smaller countries are contributing to battery production and development. As technology advances, more countries are entering the battery manufacturing industry.
Chinese companies dominate the electric vehicle (EV) battery market with a 56% market share, including four of the ten largest battery producers. South Korean and Japanese firms also hold notable positions. Leading U.S. battery companies include QuantumScape, A123 Systems, Enovix, SES AI, and Amprius Tech.
Chile boasts the world's largest known lithium reserves, totaling 8 million tons. Australia follows with 2.7 million tons, Argentina with 2 million tons, and China with 1 million tons. Portugal has smaller lithium deposits in Europe.
The global battery technology market is projected to grow from $95.7 billion to $136.6 billion, driven by the rise of electric and hybrid vehicles and the increasing use of wearable devices. The growth is also fueled by sectors like solar and wind energy, pushing the world towards eco-friendly energy solutions.
The global EV battery industry is expanding due to factors such as falling battery prices, increased investment by top automobile OEMs, and the adoption of electric vehicles (EVs) worldwide. Expanding lithium-ion battery capacity, battery-as-a-service systems, and rising acceptance of electric mobility in emerging nations present significant market opportunities.
However, challenges like less energy-dense batteries, potential lithium mining shortages, and EV battery safety concerns could limit market growth. Chinese companies lead the global EV battery industry with a 56% market share. Japanese and South Korean companies also play significant roles, with China excelling in the battery supply chain, mining metals, and refining battery components.
South Korean companies accounted for 26% of global EV battery production last year, with Samsung SDI, SK On, and LG Energy Solutions being key contributors. These companies supply EV batteries to major automakers like Tesla, Ford Motors, and General Motors. Japan, another significant player, holds 10% of the global EV production market, with Panasonic ranking 4th among the largest battery producers.
The global lithium-ion (Li-ion) battery capacity currently stands at approximately 948 GWh, with global EV battery production capacity at nearly 274 GWh. As EV adoption grows, several thousand GWh of batteries will be needed annually to accommodate the millions of new EVs added each year.
From 2021 to 2030, the demand for Li-ion batteries from light vehicles is expected to grow at a compound annual growth rate (CAGR) of about 40%, reaching approximately 2,050 GWh, according to S&P Global Mobility. During the same period, installed battery capacity is projected to grow by 23.5% CAGR to 3,371 GWh by 2030.
The Asia-Pacific region continues to lead in lithium battery production, with major companies like CATL and BYD producing significant capacities of 137.7 GWh and 51.5 GWh, respectively, in 2021. The U.S. produced 44 GWh of lithium-ion batteries in 2021, with an expected increase to 91 GWh by 2025, driven by technological advancements.
Our Methodology
Our selections are based on a comprehensive evaluation of the battery industry. We discuss details of each battery tech country and highlight top firms in the sector to provide context for investment decisions. Countries are ranked based on their share of global lithium-ion battery manufacturing capacity in 2021.
10. Australia
Share of global lithium-ion battery manufacturing capacity in 2021: 0.1%
In 2021, 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 2022. Lithium output is expected to increase at a compound annual growth rate of 14.2% to 116.24 kt in 2026.
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, producing a significant portion of the country’s lithium. In 2021, Australia supplied roughly half of the world’s lithium.
Australia also has several new battery startups. Evergreen, Greensync, Carnegie Clean Energy, RayGen, Bell Resources, and Graphene Manufacturing Group Ltd are a few notable ones. Energy Renaissance produces climate-optimized lithium-ion batteries for domestic and commercial users in Australia. Australia is home to The Victorian Big Battery, the world's largest battery, capable of storing enough energy to power over one million Victorian homes for 30 minutes. The battery has a capacity of 100 MW/129 MWh and provides critical grid support services, such as frequency control and ancillary services, to stabilize the grid during high demand.
Like Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the U.S. and XPeng Inc. (NYSE:XPEV) in China, Australia hosts some of the world’s largest battery firms.
9. United Kingdom
Share of global lithium-ion battery manufacturing capacity in 2021: 0.3%
UK has several EV battery companies such as British Volt, Aceleron, Williams Advanced Engineering, Zenobe, Moixa, and Oxis Energy. As the world gradually shifts from fossil fuels to renewable energy resources, the UK government plans to ban the sale of diesel and petroleum cars by 2030. Hence, there is a growing demand for batteries in automobiles, aerospace, electrical utilities, and other related sectors.
The UK government has committed nearly £500 million over the next four years to mass-scale battery production. British Volt plans to build 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 annually for the automotive electric industry.
8. Sweden
Share of global lithium-ion battery manufacturing capacity in 2021: 0.6%
Sweden is home to several EV battery companies. Sweden's auto market recorded an electric vehicle share of 46.1% in August 2022 as fully electric cars grew their shares. In August 2022, Volvo Group began establishing a large-scale battery cell factory in Sweden. The company plans to gradually increase capacity and reach large-scale series production by 2030. The battery cells will be manufactured specifically for commercial vehicle applications, buses, trucks, and electric drivetrains for other applications. Volvo aims to have at least 35% of their products be electric by 2030.
Northvolt AB, a Swedish battery maker, strives to deliver batteries with an 80% lower carbon footprint. Northvolt targets an annual cell output of 150 GWh by 2030. Northvolt Ett will produce 16 GWh of battery capacity annually, with plans to potentially scale up to 40 GWh.
7. Germany
Share of global lithium-ion battery manufacturing capacity in 2021: 1.6%
Germany is renowned for its technology and innovation in the electric vehicle sector. The country is home to some of the best electric vehicle makers, including Volkswagen and Tesla. Lithium, mined in places distant from Germany, is used to produce lithium-ion batteries for electric vehicles, grid energy storage, and wearable technology.
Scientists at KTI have developed a minimally invasive technology to mine lithium in geothermal plants in Germany. Using this technology, thousands of tons of lithium could be extracted annually from the German and French Upper Rhine trench.
The German government has approved a $6.1 billion plan over three years to increase the number of electric vehicle charging points nationwide. The country aims to expand its charging stations by 14 times, from 70,000 now to 1 million by 2030. Germany also plans to have fifteen million electric vehicles on the road by 2030, currently having around 1.5 million electric vehicles.
6. Japan
Share of global lithium-ion battery manufacturing capacity in 2021: 2.4%
Japan has highly profited from the increasing demand for EV batteries and consumer electronics. Japan produces batteries worth nearly 930 billion Japanese yen (JPY) annually, covering the entire battery industry from watch button cells to lead acid car batteries. In 2021, Japan produced over JPY 436 billion worth of batteries for electric vehicles, with nickel-metal hydride and lead-acid batteries worth JPY 209 billion and JPY 154 billion, respectively.
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Some of the world’s leading battery companies are based in Japan, including Panasonic, Murata, Kyocera, Toshiba, ELIIY Power, FDK, Mitsubishi, and EV Energy. Panasonic holds a 10% market share and was the sole battery supplier to Tesla in 2021. The company is working with Tesla to start producing its new 4680 battery, which is over twice the diameter of standard batteries. Panasonic has shipped over 200 billion batteries worldwide since 2018 and plans to triple its battery production by 2030.
In addition to Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the U.S. and XPeng Inc. (NYSE:XPEV) in China, Japan is also home to some of the largest battery firms in the world.
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Disclosure. None. Lithium Battery Production By Country: Top 12 Countries is originally published on Insider Monkey.
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