The electric vehicle battery market is predicted to grow $616 billion worldwide in 2035, representing a fivefold increase from the 2023 forecast of $121 billion, per SNE Research.
The South Korean energy market tracker expects that Chinese battery production will decline due to US and Europe’s EV standards modifications.
EV battery demand in 2035
The report indicated that the global EV battery production demand would likely hit 5.3 TWh in 2035, substantially growing from just 687 GWh projection this year.
Apparently, the overall production rate of the top six EV battery companies globally is expected to hit 5 TWh in 2035, per Yonhap news agency. It includes LGES, Samsung SDI, and SK On.
On the other hand, North American EV battery production is forecasted to represent 31% of the global industry. It indicates a significant increase from just 6% as of today. Notably, it is a significant part of the companies’ strategy to gain eligibility for the IRA’s federal tax credits.
Meanwhile, European production is also expected to increase to 27% from 12%, given that the EU is boosting its local EV industry through similar policies.
All that said, China’s production will likely drop to 38% in 2035 from its 2022 level of 75%.
EVs to have 90% market share by 2035
The report further noted that EVs would contribute to 90% of overall global vehicle sales to 80 million units.
In 2022, EVs held 13% of the overall auto market, up 1% between 2015 and 2017. At the same time, EV battery demand surged by 482 GWh from 28 GWh.
Apart from that, SNE Research also stated that solid-state batteries will hold 10% to 13% of the secondary battery market in 2035. These batteries offer reduced fire risks because they employ solid electrolytes. In contrast, Li-ion batteries use liquid and gel electrolytes. Furthermore, they provide higher energy density for a more extended driving range.
Interestingly, it is expected to start mass production by 2030 at the earliest. Its production rate will probably hit 950 GWh, per the report.
The report further stated that tech giant Samsung SDI plans commercial production of its solid-state battery in 2027.
Meanwhile, LGES will start mass-producing two variants of the said battery tech. The polymer-based one will be in 2026, while the sulfide-based one will start in 2030.
