Report: EV battery market expected to grow 5-fold to $616 ‎billion in 2035‎

Tucker revealed that the global electric vehicle (EV) battery market is expected to grow rapidly to $616 billion in 2035, according to a market-tracking firm on Wednesday, and production in China is likely to shrink sharply amidst policy renewals related to electric vehicles in the United States and Europe.

According to the Korean “Yonhap” agency, this forecast represents a fivefold increase from the $ 121 billion estimated for this year, according to a report issued by SNE Research, an energy market tracker in Seoul.

The demand for the production of electric vehicle batteries is expected to reach 5.3 TWh worldwide in 2035, compared to the 687 GWh expected for 2023.

The report said that the combined production capacity of the six largest global battery manufacturers, including LG Energy Solutions, Samsung SDI, and SKO, will reach 5 TWh in 2035.

By region, electric vehicle battery production in North America is expected to account for 31% of global production, up sharply from the current 6%, as battery makers ramp up manufacturing in the region to qualify for US tax credits under The American Inflation Reduction Act

Production in Europe will also rise to 27% from 12%, as the EU pushes for similar policy reforms to promote domestic electric vehicle markets.

This is likely to halve production in China, to 38% in 2035, compared to 75% in 2022.

The report said that by 2035, electric cars will account for about 90% of all cars sold globally, representing 80 million cars.

Electric vehicles accounted for about 13% of the total car market last year, a jump from about 1% between 2015 and 2017. Demand for electric vehicle batteries rose to 482 GWh from 28 GWh in the same period.

The research also projected that the envisioned solid-state batteries, a next-generation cell under development by battery makers, would account for around 10-13% of the secondary cell market in 2035.

Its commercial production is expected to start in earnest in 2030, and the production capacity is likely to reach 950 GWh by that year.

Solid-state batteries have drawn attention because they are less likely to cause a fire because they use a solid electrolyte, rather than the liquid and gel electrolyte used in lithium-ion batteries. It also has a higher energy density that allows for a longer drive.

Samsung SDI aims to start commercial production of solid state batteries in 2027. LG Energy Solutions is working on the production of two types of solid batteries – polymer batteries and sulphide batteries – intensively, starting from 2026 and 2030, respectively.