According to the report, China already has enough battery production capacity to supply the entire global electric vehicle production. Bloomberg New Energy Finance.
BNEF estimates global battery demand for both electric vehicles and energy storage at about 950 gigawatt hours by 2023 — but production capacity is already more than double that, at about 2,600 gigawatt hours.
China’s declared 2023 battery output alone is close to actual global demand, according to BNEF, noting that the US, Canada, Europe and India are currently encouraging domestic battery production to compete with China — making the gap between supply and demand even wider.
Announcing battery production capacity and demand in 2025 (via Bloomberg)
BNEF reports announced annual battery production capacity of 7,900 gigawatt hours by the end of 2025, but predicts demand of only 1,600 gigawatt hours. And that assumes continued steady growth in global electric vehicle sales, as well as growth in energy storage adoption. Even half the total announced production capacity would be enough to equip every new car sold globally next year with a 50 kWh battery pack, BNEF calculates.
Great ambitions in building EV battery factories, along with global lithium surplusAfter concerns about supply shortages just a few years earlier, there was causes battery prices to decrease in and out of China for passenger cars, commercial vehicles and energy storage.
Shenxing CATL Battery
There have been concerns about battery prices rising in 2022. But as the Department of Energy reminded us early last year, Battery costs have continued to decline if you look at inflation and look at it in constant dollars.
A recent study by the International Council on Clean Transportation (ICCT) found that would help them achieve cost parity with gasoline-powered models within a few years—sooner than expected. And Goldman Sachs analysts expect battery prices to fall 40% will help boost saleswith or without subsidies.
