In 2022, about 60% of lithium, 30% of cobalt and 10% of nickel demand was for EV batteries. Just five years earlier, in 2017, these shares were around 15%, 10% and 2%, respectively.
As more people buy electric vehicles (EVs), the demand for EV batteries also increases. Anticipated future growth in EVs is expected to boost global battery sales to more than four times the 2023 demand by 2030 (see Figure 1). EV makers have reached a critical crossroad.
This considerable gap between demand for cell components and local supply signals growth opportunities in the battery component market. The global revenue pool of the core cell components is expected to continue growing by around 17 percent a year through 2030 (Exhibit 2).
This work is independent, reflects the views of the authors, and has not been commissioned by any business, government, or other institution. Global demand for batteries is increasing, driven largely by the imperative to reduce climate change through electrification of mobility and the broader energy transition.
The global revenue pool of the core cell components is expected to continue growing by around 17 percent a year through 2030 (Exhibit 2). Future technological developments (new anode materials and solid-state electrolytes) will only increase the importance of battery components.
As EV sales continue to increase in today’s major markets in China, Europe and the United States, as well as expanding across more countries, demand for EV batteries is also set to grow quickly. In the STEPS, EV battery demand grows four-and-a-half times by 2030, and almost seven times by 2035 compared to 2023.