Lithium Battery Production By Country: Top 12 Countries

In this article, we discuss lithium battery production by country. If you want to read about some top countries in terms of lithium battery production, go directly to Lithium Battery Production by Country: Top 5 Countries.

Several countries are key players in the battery tech manufacturing industry and claim a major share of the global market. These countries are home to large battery manufacturers, and often have well-developed supply chains and infrastructure to support the production of batteries on a large scale. Some of the key battery tech manufacturing countries include China, Japan, South Korea, the United States, Germany, and India. These countries have big EV firms like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV). 

We talked about the 10 most advanced battery technologies in a separate article in detail. Battery tech manufacturers are situated around the world, and they produce a wide range of battery types, including lithium-ion batteries, lead-acid batteries, and nickel-metal hydride batteries, among others. Many small countries are also involved in the production and development of batteries. As technology is emerging, many countries across the globe are beginning to enter the battery manufacturing industry. 

Chinese firms dominate the electric vehicle (EV) battery market, accounting for 56% of the market share. Four of the ten largest battery manufacturers are based in China. South Korean companies and Japanese firms also have a significant presence in the market. Several major battery companies are based in the United States, including QuantumScape, A123 Systems, Enovix, SES AI, and Amprius Tech. 

Considering lithium reserves, Chile has the largest known reserves of lithium in the world, with a total of 8 million tons. This puts it ahead of other countries with significant reserves, such as Australia (2.7 million tons), Argentina (2 million tons), and China (1 million tons). In Europe, Portugal also has smaller deposits of lithium. 

The global battery technology market size is expected to grow from $95.7 billion in 2022 to $136.6 billion by 2027 at a compound annual growth rate of 7.4%. The adoption of electric and hybrid vehicles and the increasing usage of wearable devices are responsible for the growth of the battery technology market size. Some other sectors, such as solar and wind energy systems, are also emerging and the world is making its way towards environment-friendly energy.

The global adoption of electric vehicles (EVs), falling battery prices and increased investment by top automobile OEMs are what are fueling the growth of the total EV battery industry. Additional factors include increased investments in expanding lithium-ion battery capacity, the expansion of battery-as-a-service systems, and rising acceptance of electric mobility in emerging nations, all of which present major market prospects.

The factors that limit the global EV market include the less energy-dense batteries and probable shortage of lithium mining capacity, and possible safety concerns with EV batteries are posing a threat to the market’s expansion for EV batteries. Considering the EV battery production by country, with a 56% market share, Chinese companies lead the industry. China is home to many in the top 10 battery producers list. Japanese and South Korean businesses are likewise well-represented in the sector. Furthermore, Chinese battery is also leading in the battery supply chain, mining metals and refining battery components, etc.

Korean companies contributed a 26% share in global EV battery production last year. Samsung SDI, SK On and LG Energy Solutions are a few notable contributors to the market. The aforementioned companies provide EV batteries to automotive giants such as Tesla, Ford Motors and General Motors. Japanese companies are another key player in EV battery production with 10% of the total EV production worldwide. Companies such as Panasonic ranks 4th among the world’s largest battery-producing companies.

Around 948 GWh of lithium-ion (Li-ion) battery capacity is currently deployed globally. Out of this, the global EV battery production capacity is almost 274 GWh. If the recent trends in the adoption of EVs and E-mobility are considered, several thousand GWh of batteries will also be needed to accommodate the tens of millions of EVs that will be added each year.

Between 2021 and 2027, the demand for Li-ion batteries from light vehicles will expand at a compound annual growth rate (CAGR) of about 40%, reaching roughly 2,050 GWh as predicted by S&P Global Mobility. In the same time frame, installed battery capacity will increase by 23.5% CAGR to 3,371 GWh in 2027.

The Asia-Pacific region again takes the lead when the largest lithium battery producers are concerned. Several major companies in the list of largest lithium battery producers are from China. Notable names include CATL and BYD with a total production capacity of 137.7 GWh and 51.5 GWh respectively in the year 2022. The US was able to produce 44 GWh of lithium-ion batteries in 2021, and by 2025, that capacity is expected to increase to 91 GWh. The development of technology in the US has had a significant impact on battery production as well. The US provided the majority of cutting-edge battery technology.

Our Methodology

These were picked from a careful assessment of the battery industry. The details of each battery tech country are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions. The countries have been ranked according to their share of global lithium-ion battery manufacturing capacity in 2021. 

Lithium Battery Production By Country: Top 12 Countries

Lithium Battery Production By Country: Top 12 Countries

Lithium Battery Production by Country: Top Countries

10. Australia

Share of global lithium-ion battery manufacturing capacity in 2021: 0.1%

In 2021, Western Australian mines produced about half the world’s lithium, at an estimated 55,000 metric tons. Recent years have seen an increased number of lithium battery manufacturing facilities begin their production in Australia. This lithium is used for electric vehicles and other product batteries. Australia’s lithium production is set to increase by 24.5% to 68.45 thousand tonnes in 2022. Lithium output is expected to increase at a compound annual growth rate of 14.2% to 116.24 kt in 2026. 

Pilbara Minerals is the biggest lithium mining company in Australia. Pilbara produces over 377,000 metric tons of lithium every year. Greenbushes is Australia’s largest lithium mine, of the 55,000 tonnes of lithium mining in the country in 2021. In 2021 Australia has supplied roughly half of the world’s lithium.

Australia also has dozens of new battery startups. Evergreen, Greensync, Carnegie Clean Energy, RayGen, Bell Resources and Graphene Manufacturing Group Ltd are a few famous ones. Energy Renaissance produces climate-optimized lithium-ion batteries for domestic and commercial users in Australia. The biggest battery in the world is in Australia named The Victorian Big Battery. This battery can store enough energy to power more than one million Victorian homes for 30 minutes.  The battery has a capacity of 100 MW/129 MWh and can provide critical grid support services, such as frequency control and ancillary services, to help stabilize the grid during times of high demand.

Just like Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Australia is also home to some of the largest battery firms in the world. 

9. United Kingdom

Share of global lithium-ion battery manufacturing capacity in 2021: 0.3%

UK has several EV battery companies such as British Volt, Aceleron, Williams Advanced Engineering, Zenobe, Moixa and Oxis Energy etc. As the world is gradually shifting from fossil fuels to renewable energy resources, the UK government plans to ban the sale of diesel and petroleum cars by 2030. Hence, there is a growing demand for batteries in automobiles, aerospace, electrical utilities and other related sectors. 

The government of the UK has promised nearly £500 million in the next four years for mass-scale production of batteries. British Volt has plans for a £2.6bn Gigafactory in Northumberland on the site of the former Blyth Power Station. The Company will produce 300,000 lithium-ion battery packs each year. These will be supplied to the automobile electric industry. 

8. Sweden

Share of global lithium-ion battery manufacturing capacity in 2021: 0.6%

Sweden is home to several EV battery companies. Sweden’s auto market recorded an electric vehicle share of 46.1% in August 2022 as fully electric cars grew their shares. In August, Volvo Group began the process to establish a large-scale battery cell factory in Sweden. The company plans to gradually increase capacity and reach large-scale series production by 2030. The battery cells will be manufactured specifically for commercial vehicle applications, busses, trucks and electric drivelines for other different applications. Volvo said that by 2030, at least 35% of their products will be electric. 

Northvolt AB is a Swedish battery maker and plans to deliver batteries with an 80% lower carbon footprint. Northvolt has a target of 150GWh for annual cell output by 2030. Northvolt Ett will produce 16GWh of battery capacity per year. The company will scale up its production at a later stage to potentially 40GWh. 

7. Germany

Share of global lithium-ion battery manufacturing capacity in 2021: 1.6%

When it comes to technology and innovation in the electric vehicle sector, Germany is one of the leading countries in it. The country is home to some of the best electric vehicle makers including Volkswagen and Tesla. Millions of tons of lithium are mined in places far away from Germany to produce lithium-ion batteries every year. These batteries are used in electric vehicles, grid energy storage and wearable technology. 

Scientists at KTI have invented a minimally invasive technology to mine lithium in geothermal plants in Germany. Using this technology thousands of tons of lithium could be extracted from the German and French Upper Rhine trench every year.

The government of Germany has approved a plan to spend $6.1 billion over three years to increase the number of charging points for electric vehicles across the country. The country will increase its charging stations by 14 times. Germany has 70,000 charging stations now and plans to reach 1 million by 2030. The country also plans to have fifteen million electric vehicles on the road by 2030. Currently, there are 1.5 million electric vehicles in Germany. 

6. Japan

Share of global lithium-ion battery manufacturing capacity in 2021: 2.4%

Japan has highly profited from the increasing demand for EV batteries and consumer electronics. Japan is producing batteries worth nearly 930 billion Japanese yen (JPY) yearly. The battery producer covers the entire battery industry by producing batteries from watch button cells to lead acid car batteries. Japan has produced more than JPY 436 billion worth of batteries for electric vehicles. Nickel metal hydride batteries are worth 209 billion JPY. Lead acid batteries made by Japan are worth JPY 154 billion. 

Some of the world’s biggest battery companies are located in Japan including Panasonic, Murata, Kyocera, Toshiba, ELIIY Power, FDK, Mitsubishi and EV Energy. Panasonic has a market share of 10%. In 2015, it was the only company to supply batteries to Tesla. It is working with Tesla to start production of its new 4680 battery, which is more than double in diameter compared to standard batteries. Panasonic has shipped more than 200 billion batteries across the globe since 1931. The company will triple its battery production by 2028. 

In addition to Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Japan is also home to some of the largest battery firms in the world. 

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Disclosure. None. Lithium Battery Production By Country: Top 12 Countries is originally published on Insider Monkey.