China dominates the global battery production market.
Key discussions at the International Battery Seminar focused on supply chain development in North America for future EV (Electric Vehicle) targets.
Investment Needs
North America requires $50 billion for raw materials and $20 billion for midstream processes by 2030 (Benchmark Mineral Intelligence).
Globally, $580 billion needed by the end of the decade for lithium battery industry:
$130 billion for battery materials (anodes, cathodes, electrolytes, separators).
Energy Transition
Transition involves legacy oil, gas industries, renewables, and new energy techs (fusion, fission).
Critical materials (nickel, lithium, cobalt) must scale 3-10 times for competitiveness.
Global Battery Production
2023 battery production: 1.1 TWh globally.
China: 904.5 GWh
USA: 52.9 GWh
Europe: 44.6 GWh
East Asia: 49.8 GWh
Geopolitics and Competitiveness
Challenge for GM and Ford to compete with Chinese companies.
Regional supply chains crucial for EV ambitions.
Inflation Reduction Act (August 2022) boosted North American battery capacity by 80%.
Raw Material Economics
Raw materials are the largest portion of battery costs.
Access to raw materials is crucial for success in the North American EV market.
Market Predictions
Global EV battery demand to rise from 718 GWh (2023) to 2.5 TWh (2028).
Growth indicators:
CATL delivered 80 GWh in Q4 2023.
LG Energy Solution delivered 40 GWh.
EV Market Outlook
EV sales predicted to reach 17.8 million units in 2024 (up from 14.2 million in 2023).
70% of 2023 sales were BEVs.
China accounted for 59% of global EV sales in 2023.
Future Projections
By 2030:
45% of cars sold in China will be BEV or PHEV.
Global EV sales could reach 48.8 million units.
U.S. and Global Targets
U.S. aims for $75/kWh pack cost by 2030.
Battery sales targets:
USA: 1 TWh
China: 3.4 TWh
Europe: 1.4 TWh
South Korea/Japan: 69 GWh
Technology and Innovation
Panasonic plans global production capacity increase to 200 GWh by 2030.
Introduction of 4680 li-ion batteries with greater energy capacity.
Tesla expected to use new battery types.
Conclusion
The battery supply landscape is highly dominated by China, with significant investments and innovations required globally to meet future demands and geopolitical challenges.