What is the global demand for lithium ion batteries?

Global demand for Li-ion batteries is expected to soar over the next decade, with the number of GWh required increasing from about 700 GWh in 2022 to around 4.7 TWh by 2030 (Exhibit 1). Batteries for mobility applications, such as electric vehicles (EVs),

What is a global supply chain for lithium-ion batteries?

For lithium-ion batteries, global supply chains are characterized by diverse stakeholders, including governments, multinational corporations, local suppliers, and affected communities (Bridge and Faigen, 2022).

What percentage of lithium-ion batteries are used in the energy sector?

Despite the continuing use of lithium-ion batteries in billions of personal devices in the world, the energy sector now accounts for over 90% of annual lithium-ion battery demand. This is up from 50% for the energy sector in 2016, when the total lithium-ion battery market was 10-times smaller.

Will China reduce its role in global lithium-ion battery supply chains?

Although Chinese companies are not mentioned explicitly, the act has been associated with efforts to promote EU commercial interests by reducing China's role in global supply chains, including lithium-ion batteries (Petitjean and Verheecke, 2023; Reuters, 2023; Müller et al., 2024).

How big will lithium-ion batteries be in 2022?

But a 2022 analysis by the McKinsey Battery Insights team projects that the entire lithium-ion (Li-ion) battery chain, from mining through recycling, could grow by over 30 percent annually from 2022 to 2030, when it would reach a value of more than $400 billion and a market size of 4.7 TWh.1

Can lithium ion batteries be adapted to mineral availability & price?

Lithium-ion batteries dominate both EV and storage applications, and chemistries can be adapted to mineral availability and price, demonstrated by the market share for lithium iron phosphate (LFP) batteries rising to 40% of EV sales and 80% of new battery storage in 2023.