The top lithium-ion battery producing countries by 2030

China: The unrivaled leader

China is projected to remain the dominant force in lithium-ion battery production by 2030, claiming nearly 70% of global capacity. This translates to an astounding 6.268 gigawatt-hours (GWh), according to data from Benchmark Mineral Intelligence. Chinese companies have not only established themselves as the leaders in battery manufacturing but have also integrated vertically across the entire supply chain—from mining and refining battery metals to producing the final battery packs.

Leading the charge is Contemporary Amperex Technology Co. Limited (CATL), which alone is expected to produce more battery capacity than the combined efforts of several other nations, including Canada, France, Hungary, Germany, and the United Kingdom. Other significant players from China include BYD, CALB, SVOLT, and EVE, each contributing to China’s overwhelming share of the global market.

This dominance is driven by a combination of factors, including substantial government support, early investments in EV and battery technology, and a robust domestic supply chain. China’s strategy has been to not only lead in production but also to secure critical raw materials through partnerships and acquisitions globally, ensuring a steady supply of the essential components for lithium-ion batteries.

The United States: A distant second

While China leads by a considerable margin, the United States is expected to be the second-largest producer of lithium-ion batteries by 2030, with a forecasted capacity of 1.261 GWh. American companies like Tesla, alongside foreign companies with significant U.S. operations such as LG Energy Solution (LGES) and SK On, are set to drive this growth. Tesla’s Gigafactories, particularly the one in Nevada, play a crucial role in this expansion.

The U.S. government’s recent policies and incentives aimed at boosting domestic battery production and reducing reliance on foreign supply chains are also contributing to this growth. However, the U.S. still faces challenges in matching China’s scale and integration, particularly in sourcing critical raw materials domestically.

Europe: Germany at the forefront

In Europe, Germany is forecasted to lead the continent’s lithium-ion battery production with a capacity of 262 GWh by 2030. Much of this capacity will come from Tesla’s Giga Berlin plant, the company’s first manufacturing location in Europe. German automotive giants like Volkswagen are also heavily investing in battery production to support their ambitious plans for electric vehicles.

Other European nations, including Hungary and France, are also making significant strides. Hungary, with a projected capacity of 210 GWh, will see contributions from major players like CATL, SK On, and Samsung. France is expected to produce 162 GWh, led by companies such as Verkor, Prologium, and ACC, a sign of the country’s growing emphasis on establishing a foothold in the battery supply chain.

The rest of the world: Emerging players

Beyond China, the U.S., and Europe, other countries are beginning to carve out their roles in the lithium-ion battery market. Canada, for example, is forecasted to reach a capacity of 204 GWh by 2030, supported by companies like Northvolt, LGES, and Volkswagen. South Korea, home to major battery manufacturers LGES, Samsung, and SK On, is expected to produce 94 GWh.

The United Kingdom, while smaller in scale, is projected to have a capacity of 67 GWh, with Envision and Tata leading the efforts. Additionally, countries like South Korea and the UK are noteworthy for their efforts to boost domestic production and reduce reliance on imports.

Conclusion: A new energy landscape

The global lithium-ion battery production landscape by 2030 will be shaped by strategic investments and policies implemented today. China’s dominance is likely to continue, fueled by its comprehensive approach to the battery supply chain. Meanwhile, the U.S. and Europe are ramping up efforts to secure a larger share of this critical market, aiming to balance their need for energy security with the demands of a decarbonising world.

As the world transitions to clean energy, the ability to produce lithium-ion batteries at scale will be a key determinant of economic and technological leadership. The countries leading in battery production will not only drive the global EV market but also influence the broader energy landscape in the decades to come.

Source: Visual Capitalist