Can Anyone Compete With China’s Battery Dominance?

The global electric battery market has expanded dramatically over the last year, as the push to shift from traditionally fuelled cars to electric alternatives has never been stronger. So, how will emerging battery markets overcome supply chain challenges to ensure that the future of electric battery development is secure?

McKinsey estimates that the global battery market will grow by over 20 percent per year until 2030 to reach at least $360 billion, with upper-end estimates increasing to $410 billion. In addition, the development of one 30 to 40 GWh factory per year would create around 3,200 direct jobs.

Despite its lack of lithium reserves, China has established itself as the world’s biggest lithium battery manufacturer, with around 72 percent of the battery market share in 2020, compared to 60 percent in 2018. Some estimates are even higher. Comparatively, the U.S. holds around 8.5 percent of the market share.