In this article, we discuss lithium battery production by country.
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 2022 to $136.6 billion by 2027 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 2021 and 2027, 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 2027.
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 2022. The US was able to produce 44 GWh of lithium-ion batteries in 2021, and by 2025, 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 2021.
Lithium Battery Production by Country: Top Countries
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, of the 55,000 tonnes of lithium mining in the country in 2021. In 2021 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. and Ford Motor Company in the US and XPeng Inc. 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 2021: 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 2030. 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 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, 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 2030. The battery cells will be manufactured specifically for commercial vehicle applications, busses, trucks and electric drivelines for other different applications. Volvo said that by 2030, 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 2030. 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 2021: 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 2030. The country also plans to have fifteen million electric vehicles on the road by 2030. Currently, there are 1.5 million electric vehicles in Germany.
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 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.
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 2015, it was the only company to supply batteries to Tesla. It is working with Tesla to start production of its new 4680 battery, which is more than double in diameter compared to standard batteries. Panasonic has shipped more than 200 billion batteries across the globe since 1931. The company will triple its battery production by 2028.
In addition to Tesla, Inc. and Ford Motor Company in the US and XPeng Inc. in China, Japan is also home to some of the largest battery firms in the world.
5. South Korea
Share of global lithium-ion battery manufacturing capacity in 2021: 2.5%
The three major South Korean battery manufacturers, LGES, SK On and Samsung SDI, supply EV batteries to Tesla Inc, General Motors Co and Ford Motor Co which produce more than a quarter of the global EV battery market. LG Energy Solution has a market share of 14%. SK On has a market share of 7% and Samsung SDI has a market share of 5%. Samsung SDI is the world’s sixth-largest EV battery manufacturer. It intends to reach a 23 GWh yearly output capacity.
South Korea is a hub for manufacturing and innovating technology for batteries. Every year dozens of startups are launched in this country. Some of the innovative startups are Standard Energy, Kokam, NS, Zantropy, Elentec and EnerTech International etc.
Posco Chemical, the South Korean battery manufacturer, has expected production to rise from 30,000 tons per year to 90,000 tons per year. If its estimates are fulfilled it will be the largest capacity for a single cathode material plant globally. The capacity will be sufficient to supply batteries for 1 million high-performance EVs. The plant will focus on the production of high-nickel cathodes used in electric vehicles including nickel cobalt manganese aluminum and nickel cobalt manganese cathodes.
4. Poland
Share of global lithium-ion battery manufacturing capacity in 2021: 3.1%
Poland’s export of lithium-ion car batteries reached EUR 6.5 billion in 2021. 90 percent of batteries exported from Poland are lithium-ion batteries, making Poland the largest European producer of electric car batteries and the fifth largest in the world. The export of lithium-ion batteries and their components has exceeded 2 percent of total exports. Experts of the Polish Economic Institute claim that battery production capacity in Poland will grow despite the increase in prices.
Many large companies like LG, SK Hi-tech Battery Materials Poland, KET Poland, Foosung and Enchem have opened their processing plants and factories in Poland. According to the reports of GlobalData, the production of electric vehicle batteries in Europe will increase more than in China by 2030. The demand for batteries will increase to 300 GWh in 2025 and is expected to reach 1300 GWh in 2035.
In June 2022, LG Energy Solution planned to double its capacity of nickel, cobalt and manganese battery cell production lines in Poland for Ford’s EVs by next year. In October, SK Innovation’s SK Technology opened its first production facilities for separators for use in electric car batteries in Poland. This separator plant has an annual capacity of 340 million square meters of separator film. This can equip around 300,000 electric cars. The company has planned a total of four plants for batteries in the Silesia region of Poland.
3. Hungary
Share of global lithium-ion battery manufacturing capacity in 2021: 4%
A Hungarian minister said that South Korean company W-Scope will open its first European plant in Hungary, and it will make 1.2 billion square meters of separator film for electric car batteries. CATL, the world’s largest battery supplier, plans to build Europe’s largest battery plant in Hungary which would be enough to power over 200,000 electric vehicles. The plant will achieve a capacity of 14 GWh.
Samsung SDI and SK Innovation are giant players in battery manufacturing and both companies have their plants in Hungary. Samsung’s battery plant has a production capacity of 50,000 electric vehicle batteries per year. SK Innovation’s plant in Hungary is capable of making 250,000 batteries for electric vehicles due to demand from the Volkswagen Group.
2. United States
Share of global lithium-ion battery manufacturing capacity in 2021: 6.2%
The United States had a lithium-ion battery manufacturing capacity of 44 GWh in 2021 and it is estimated to reach 91 GWh by 2025. Currently, the US is the second largest battery manufacturer in the world. The advancement of technology is also playing a great role in the manufacturing of batteries. Most of the new and innovative technologies for batteries came from the US.
Some of the largest battery manufacturing companies based in the United States are QuantumScape, A123 Systems, Enovix, Stem, SES AI, Amprius Tech, Solid Power and American Battery Technology Company. The market cap of QuantumScape is $2.31 billion. Although other countries are producing more batteries globally, the US is the hub for technology and EV manufacturing. Tesla, an EV automobile company, is a US-based company in Nevada.
The demand for lithium-ion batteries for electric vehicles is rising significantly. It is expected to reach 9300-gigawatt hours by 2030. According to S&P Global Market Intelligence, Contemporary Amperex Technology Co. Ltd. (CATL), the largest battery supplier in the world based in China, was in discussions with its U.S.-based customers to build a manufacturing hub in North America. The biggest battery manufacturers are located in regions with high electric vehicle demand.
1. China
Share of global lithium-ion battery manufacturing capacity in 2021: 79%
Chinese companies are responsible for 56% of the EV battery market, followed by Korean and Japanese companies. Four of the ten largest battery manufacturers are headquartered in China. China is also dominating other parts of the battery supply chain, including refining and mining of battery materials like lithium and graphite. A few of the Chinese battery companies include CATL, BYD, CALB, Guoxuan, Sunwoda, and SVOLT.
From 2021 to 2022, CATL, a leading battery supplier expanded its market share from 32% to 34%. This company is responsible for one-third of the world’s EV batteries. CATL provides lithium-ion batteries to Peugeot, Honda, Toyota, Volvo, Tesla, Hyundai, BMW, Toyota and Volkswagen.
BYD doubled its market share from last year and became number 2 on the list with a market share of 12% in 2022. The market share of CALB is 4%. Guoxuan has a market share of 3%. Sunwoda has a market share of 2%. SVOLT has a market share of 1% as of 2022.
The growth of the companies was driven by the demand for batteries from different car manufacturing companies. Europe, the US, Korea and other giant manufacturers of cars aim to reduce fossil fuel consumption and carbon emissions significantly by 2030. Consequently, the production of lithium has increased by more than 3500% relative to 2020 production.
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This article is originally published at Insider Monkey.