The worldwide electric vehicle (EV) battery market is expected to rise rapidly to $616 billion by 2035, according to a market tracker, with China-based production set to drop sharply due to EV-related regulatory changes in the US and Europe.
According to SNE Research, a Seoul-based energy industry tracker, the expectation is a fivefold rise from the $121 billion predicted for this year. Global demand for EV battery manufacture is estimated to reach 5.3 terrawatt hours (TWh) in 2035, up from 687 gigawatt hours (GWh) in 2023.
According to the survey, the combined production capacity of the world’s top six battery companies, including South Korea’s LG Energy Solution, Samsung SDI, and SK On, would likely be 5 TWh in 2035, according to a news agency.
According to the report, North American EV battery production is expected to account for 31% of global production, up from 6% currently, as battery makers ramp up production in the region to qualify for US tax credits under the US Inflation Reduction Act.
Production in Europe will also increase to 27% from 12%, as the European Union pushes for similar legislative changes to support its domestic EV markets. This will very certainly reduce Chinese output by half, to 38% in 2035, compared to 75% in 2022.
According to the estimate, by 2035, EVs would account for around 90% of all automobiles sold globally, amounting to 80 million vehicles.
EVs accounted for over 13% of the total vehicle market last year, up from around 1% between 2015 and 2017. EV battery demand increased to 482 GWh from 28 GWh in the same period. The research outlet also predicted that solid state batteries, a next-generation cell in development by battery manufacturers, will account for 10-13 percent of the secondary cell market by 2035.
Its commercial production is expected to begin in earnest around 2030, with a capacity of 950 GWh by that time.
Solid-state batteries have gotten a lot of attention since they use a solid electrolyte rather than the liquid and gel electrolytes used in lithium-ion batteries.
They also have a larger energy density, allowing for a greater driving range.
Samsung SDI intends to start commercial manufacture of solid-state batteries in 2027. LG Energy Solution plans to begin mass production of two types of solid-state batteries, polymer-based and sulphide-based, in 2026 and 2030, respectively.