Poland and Hungary Emerging in Global Battery Supply Chain

In recent years, the growth of the electric vehicle market has led to an increase in demand for lithium-ion batteries, which are a crucial component of these vehicles. As a result, the global battery cell manufacturing industry has seen significant growth, with China leading the pack. However, a recent report by PSPA suggests that several European countries, including Poland, Hungary, the Czech Republic, and Slovakia, are starting to make a major impact on the lithium-ion battery supply chain.
According to the report, in 2022, Poland secured the second position in the ranking of battery cell manufacturing capacity, with a 6% contribution to the global share. The LG Energy Solution’s Wrocław gigafactory, the largest in Europe, played a significant role in this achievement. Poland, along with Hungary, emerged as strong representatives of the CEE region, making a significant impact on the ranking with a combined capacity of 111 GWh, accounting for 9% of the global share.

While China dominates the ranking with an impressive capacity of almost 900 GWh (77% of the total share), the presence of European countries in the ranking is a positive development. The BNEF ranking for 2022 has placed Poland, Hungary, the Czech Republic, and Slovakia among the top 30 leading countries in the global lithium-ion battery supply chain. This ranking is based on 45 metrics across five key themes, including the availability and supply of raw materials, battery cell and component manufacturing, local demand for electric vehicles and energy storage, infrastructure, innovation and industry, as well as ESG considerations.

A bar chart titled "Battery manufacturing capacity by country in 2022" shows China leading with 893 GWh (77%), followed by Poland (73 GWh, 6%), USA (70 GWh, 6%), and Hungary (38 GWh, 3%). The chart lists 10 countries in total, with a global capacity of 1,163 GWh. Source: BloombergNEF.
Source: Europe runs on Polish lithium-ion batteries | PSPA

The report highlights the potential for further development in the region, with existing factories conducive to the implementation of related investments and availability of investment incentives from public administration. Hungary, in particular, is set to increase its battery manufacturing capability and is expected to meet Poland in the ranking.

Despite the positive news for the region, the report suggests that most European countries, except Finland and the Czech Republic, have dropped in the ranking compared to the previous year. This highlights the need for continued investment and development to keep pace with the rapidly growing global market.

Furthermore, the report emphasizes the importance of a sustainable supply chain and ESG considerations in the lithium-ion battery industry. As the demand for electric vehicles and energy storage continues to grow, it is crucial to ensure that the supply chain is environmentally and socially responsible. This is an area where European countries have an advantage, as they have been at the forefront of sustainability and ESG initiatives.

In conclusion, the BNEF report indicates that European countries, particularly Poland and Hungary, are starting to make their mark in the global lithium-ion battery supply chain. However, continued investment and development are necessary to keep pace with the rapidly growing market. The potential for a sustainable supply chain and ESG considerations gives the region an advantage in the industry, making it an exciting time for the European battery cell manufacturing industry.

Map of Europe highlighting locations of manufacturers of battery modules and packs. Countries include the UK, Ireland, France, Spain, Portugal, Germany, Switzerland, Italy, Netherlands, Belgium, Slovakia, Poland, Norway, Sweden, Finland, Denmark, Lithuania, Hungary, Croatia, and Greece.
Source: Europe runs on Polish lithium-ion batteries | PSPA

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