Europe’s EV Boom: Powering the Battery Revolution
The exponential rise in EV sales has given birth to an unprecedented demand for batteries. In 2022 alone, the combined energy capacity of batteries sold for EV applications reached an astounding 690 GWh, marking an impressive 76% growth compared to the previous year. This surge in battery demand has intensified competition among key players in the market.
CATL, the market leader in battery cell production, is followed closely by LG Energy Solution, BYD, Panasonic, Samsung SDI, and SK On. Interestingly, while these companies are headquartered in Asia, four out of six have established production facilities in Europe, recognizing the continent’s potential as a key market for EVs and stationary battery storage systems.
Speaking of stationary storage, the market for battery storage systems has been experiencing significant growth. In 2022, 122 GWh of battery capacity were sold globally, an astonishing 177% increase from the previous year. This growth is expected to continue as governments worldwide implement policies favoring renewable energy generation and mandating the installation of energy storage systems.
Notably, Europe is proving to be a crucial player in the battery revolution. The continent is witnessing a surge in battery cell production, with major manufacturers establishing new facilities. Northvolt and CATL have already commenced operations in Germany, with respective capacities of 16 GWh/a and 8 GWh/a. In France, ACC has begun production and aims to reach 13 GWh/a by the end of 2024.
Moreover, South Korean manufacturers, including LG Energy Solution, Samsung SDI, and SK On, have been actively producing battery cells in Poland and Hungary. With expansion plans underway, Europe’s total production capacities for xEV batteries are expected to grow from approximately 145 GWh/a in 2022 to a promising 175 GWh/a by the end of 2023.
The IPCEI (Important Projects of Common European Interest) report section underscores the positive developments in Europe’s battery industry, which are essential for achieving a sustainable, electrified future. As EV sales continue to soar, and governments prioritize green initiatives, the region’s battery production capabilities are set to play a pivotal role in shaping the mobility landscape and reducing carbon emissions.
Source: Market Update Q2 2023 | IPCEI