Global LIB Production Capacity Expected to Grow up to 5.7TWh by 2035
Global LIB production capacity is expected to grow up to 5,695GWh by 2035.
According to the report, titled <2024 Global Outlook for Expansion
of LIB Production lines (~2035)>, published by SNE Research on June 27,
2024, the global LIB (lithium-ion battery) production capacity is expected to
reach 5,695GWh by 2035. The CAGR from 2024 to 2035 is calculated to be
approximately 10%. The production capacity here includes those for mid/large-size
LIB for xEV and ESS and small-size LIB for IT applications.
The K-trio (LG Energy Solution, Samsung SDI, and SK On) is forecasted
to have their production capacities of 1,159GWh by 2035. Their production bases
are located mostly in North America and Europe, of which capacity is estimated
to reach 628GWh and 305GWh by 2035 respectively. Particularly in North America,
the Korean companies’ production capacity is expected to take up 58% of the
entire production capacity in the region.
If we look at different regions, China seems to see its production
capacity reach 3,093GWh, North America 1,084GWh, and Europe 1,174GWh by 2035.
In China, top 3 companies (CATL, BYD, and CALB) are forecasted to account for about
half of the entire production capacity held by the Chinese companies in 2035. Due
to oversupply in battery, reorganization of players in the battery industry may
occur, focusing on those players in the upper rank. On the other hand, North
America has been witnessing delays in line operation and expansion in the wake
of slowdown in the EV market. In Europe, there have been media coverage on the announcement
of withdrawal of line construction plans.
An official from SNE Research said, “With LIB manufacturers taking an
aggressive position in expanding their production capacity, battery oversupply
is expected, but, in the long run, growth in battery supply may slowdown while demand
for battery is expected to gradually increase, leading to an ideal balance
between supply and demand.”
The report <2024 Global Outlook for Expansion of LIB Production lines (~2035)> provides production capacity expansion plans of LIB manufacturers based on their official capacity expansion plans released publicly.
