Manufacturing capacity needed to meet projected demand is estimated using a utilisation rate of 85%. Announced electric vehicle battery manufacturing capacity by region and manufacturing capacity needed in the Net Zero Scenario, 2021-2030 - Chart and data by the International Energy Agency.
Established battery cell companies and emerging start-ups have announced combined plans to build production capacity of up to approximately 960 GWh in Europe alone by 2030, growing 20-fold from 2020 and accounting for 33 percent of global, announced battery cell production capacity of around 2,900 GWh in 2030.
In 2022, battery manufacturer CATL averaged a capacity utilisation rate of 83.4% for the year. While the share of total government revenue from fuel taxes may be small, for example it has recently been less than 3% in the United Kingdom, in many cases it represents a large share of the budget allocations for transportation infrastructure.
Notably, planned EV battery manufacturing expansions are set to increase capacity more than fourfold, reaching 6.8 TWh/year of production capacity in 2030, 65% higher than is needed to enable the level of EV deployment in the APS.
On the other hand, it is possible to reduce the production cost of batteries by giving some tax incentives to battery manufacturers or manufacturers of core components of the battery industry based on overall considerations of their production quality, sales performance, innovation ability, customer satisfaction, and other aspects.
There are nearly 30 Na-ion battery manufacturing plants currently operating, planned or under construction, for a combined capacity of over 100 GWh, almost all in China. For comparison, the current manufacturing capacity of Li-ion batteries is around 1 500 GWh.