Global Lithium-Ion Battery Production to Hit 5,695GWh by 2035, SNE Research Reports
Market research firm SNE Research has forecasted significant growth in global lithium-ion battery (LIB) production capacity, predicting it will reach 5,695GWh by 2035. According to the report, "2024 Global LIB Line New Establishment and Expansion Outlook," the average annual growth rate from 2024 to 2035 is expected to be 10%.
The report highlights the critical role of Korean battery giants—LG Energy Solution, Samsung SDI, and SK On—in the expanding market. By 2035, these companies are projected to have a combined production capacity of 1,159GWh, with 628GWh in North America and 305GWh in Europe. Korean firms are anticipated to dominate 58% of North America's production capacity.
In comparison, China is expected to lead with a forecasted 3,093GWh, followed by North America at 1,084GWh, and Europe at 1,174GWh by 2035. The Chinese battery sector may undergo reorganization due to potential oversupply, with top companies CATL, BYD, and CALB likely to account for half of China's total production capacity.
The surge in electric vehicle (EV) demand and energy storage systems (ESS) are driving this growth. Global policies promoting EV adoption and technological advancements are fueling consumer demand. Additionally, ESSs are essential for stabilizing power grids and supporting renewable energy sources, further increasing LIB demand.
South Korean companies have positioned themselves as global leaders through technological advancements and strategic expansions in key regions like North America and Europe. However, the industry must address sustainability and environmental impacts, including raw material sourcing and battery recycling, to ensure long-term viability.
