Mapping: electric vehicle battery manufacturing capacity, by region
Demand for lithium-ion batteries for electric vehicles (EVs) is growing rapidly – expected to reach 9,300 gigawatt hours (GWh) by 2030 – up by more than 1600% from 2020 levels.
For this reason, the development of domestic battery supply chains, including battery manufacturing capacity, is becoming increasingly important as countries strive to transition from gasoline-powered to electric vehicles.
Which countries are leading the battery race? The infographic above from Scotch Creek Ventures highlights the top 10 countries for EV battery manufacturing.
Top 10 countries by capacity
The largest battery manufacturers are located in regions that have high demand for electric vehicles and have wide access to raw materials:
| Rank | The country | 2021 Li-ion production capacity (GWh) | % of world total |
|---|---|---|---|
| #1 | China 🇨🇳 | 558 | 79.0% |
| #2 | WE 🇺🇸 | 44 | 6.2% |
| #3 | Hungary 🇭🇺 | 28 | 4.0% |
| #4 | Poland 🇵🇱 | 22 | 3.1% |
| #5 | South Korea 🇰🇷 | 18 | 2.5% |
| #6 | Japan 🇯🇵 | 17 | 2.4% |
| #7 | Germany 🇩🇪 | 11 | 1.6% |
| #8 | Sweden 🇸🇪 | 4 | 0.6% |
| #9 | United Kingdom 🇬🇧 | 2 | 0.3% |
| #ten | Australia 🇦🇺 | 1 | 0.1% |
| N / A | Rest of the world 🌍 | 1 | 0.1% |
| N / A | Total | 706 | 100.0% |
Data as of February 1, 2021.
Source: S&P Global Market Intelligence
China is by far the leader in the battery race with nearly 80% of worldwide Li-ion manufacturing capacity. The country also dominates other parts of the battery supply chain, including the mining and refining of battery minerals like lithium and graphite.
The United States is a distant second to China, with around 6% or 44 GWh of global manufacturing capacity. Tesla and Panasonic’s Giga Nevada account for the majority with 37 GWh of annual capacity, making it the largest battery manufacturing plant in the world.
European countries collectively compensate 68GWh or around ten% of global battery manufacturing. Additionally, Hungary and Poland are also in the top five, home to factories owned by large battery manufacturers such as SK Innovation and LG Chem.
The future of EV battery manufacturing
According to S&P Global Market Intelligenceglobal lithium-ion manufacturing capacity is expected to more than double by 2025.
Here is how the top 10 countries could rank in 2025:
| Rank | The country | 2025P Li-ion Manufacturing Capacity (GWh) | % of world total |
|---|---|---|---|
| #1 | China 🇨🇳 | 944 | 65.2% |
| #2 | Germany 🇩🇪 | 164 | 11.3% |
| #3 | WE 🇺🇸 | 91 | 6.3% |
| #4 | Poland 🇵🇱 | 70 | 4.8% |
| #5 | Hungary 🇭🇺 | 47 | 3.2% |
| #6 | Sweden 🇸🇪 | 32 | 2.2% |
| #7 | France 🇫🇷 | 32 | 2.2% |
| #8 | South Korea 🇰🇷 | 18 | 1.2% |
| #9 | Japan 🇯🇵 | 17 | 1.2% |
| #ten | United Kingdom 🇬🇧 | 12 | 0.8% |
| N / A | Rest of the world 🌍 | 20 | 1.4% |
| N / A | Total | 1,447 | 100.0% |
Although China is expected to win again, its share of global capacity could drop to around 65% while other countries are increasing battery production. For example, Germany’s capacity is expected to increase to 164 GWh, which represents a 15 times increase in just four years.
In addition, the United States should more than double its capacity by 2025. In fact, 13 new factories are expected to be operational in the next five years, which will boost the national capacities for manufacturing batteries for electric vehicles.
It is important to note that the battery industry is changing rapidly and these rankings may change as manufacturers move into different countries. However, it is clear that battery demand and manufacturing capacity are expected to increase. And more batteries require more raw materials, especially critical metals like lithium.
Global lithium demand from battery factories could hit 3 million tons by 2030, requiring a massive increase from the 82,000 tons produced in 2020. As countries like the United States ramp up battery manufacturing, new sources of lithium could prove increasingly valuable for the building sustainable battery supply chains.
Scotch Creek Ventures is developing two lithium mining projects in Clayton Valley, Nevada to provide lithium for a green future.
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