Batteries

• India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities as it seeks to promote the use of electric vehicles and cut down its dependence on oil.
• India plans to retain its import tax rate of 5% for certain types of batteries, including batteries for electric vehicles, until 2022, but will increase it to 15% thereafter to promote local manufacturing.
• India plans to offer $4.6 billion in incentives to companies setting up battery manufacturing facilities as it seeks to promote the use of electric vehicles and cut down its dependence on oil.
• While electric vehicles on the road today account for a mere 1% of total vehicles, under the SDS, charging batteries in electric vehicles will become the largest single source of electricity demand, accounting for around 5% of global demand by 2050.
• The global market for Lithium-ion battery market was valued $36.7 billion in 2019 and is projected to hit $129.3 billion by 2027, at a CAGR of 18.0% from 2020 to 2027.
• Electric vehicles sold globally through 2020 could provide between 120 and 549 GWh in energy storage capacity by 2028 - representing a significant amount of storage capacity that is both cost-effective and more environmentally friendly than lead - acid batteries.
• The price of lithium-ion batteries - which power the bulk of electric vehicles - drop to around $100 kwh by 2024, from $156 kwh per BNEF as of 2019.
• The Commission estimates that its battery materials initiative will lead to 80% of Europe's lithium demand being supplied from European sources by 2025.
• Through the European Battery Alliance, public and private investment has been mobilised at scale and should lead to 80% of Europe's lithium demand being supplied from European sources by 2025.
• The cost of battery storage has plummeted by about 80% since 2010, and expects storage system costs to fall another 60% by 2030.
• Utility-scale solar demand will skyrocket to over 100 GW per year while battery storage capacity will surpass 400 GW - accounting for nearly 40% of the total installed power generating capacity of the US in 2020.
• The prices of lithium-ion batteries are expected to decrease further in the coming years as the production capacity continues to rise owing to the strong demand for EVs.
• Europe will need about 60 times more lithium and 15 times more cobalt for EV batteries and energy storage by 2050.
• In the European market, the growth in battery demand for electric vehicles is expected to be 400 GWh by 2030, i.e. 15 times the current market.
• For e-car batteries and energy storage alone, Europe will for instance need up to 18 times more lithium by 2030 and up to 60 times more by 2050.
• Along with batteries, the demand for electric traction motors will increase rapidly over the next 10 years, not just from the overall vehicle sales but also with the rise of vehicles using more than one motor, specifically in premium cars and heavy-duty vehicles.
• Panasonic plans to boost the energy density of the original 2170 battery cells it supplies to Tesla by 20% in five years.
• Benchmark Minerals, a leading industry forecaster for the battery materials sector, anticipates global battery demand to reach almost 800 GWh by 2025 (166 GWh in 2020), with a 37% CAGR, requiring nickel consumption in batteries to grow from 140 kt in 2020 to 570 kt in 2025.
• Musk hinted that Tesla will be able to mass produce batteries with an energy density of 400 Wh/kg in the next three to four years - a more than 50% jump in capacity, as compared with the batteries Tesla currently uses for its Model 3.
• Demand for battery metals - cobalt and nickel - continues to grow rapidly and could face a supply crunch by the mid-2020s.
• Within three to four years Tesla could mass produce a battery with an energy density of 400 Wh/kg.
• Volkswagen will probably pass Tesla and become the world's largest producer of electric vehicles in 2022, when it should sell more than a million battery-powered cars.

Last updated: 04 October 2020