BAKU, Azerbaijan, June 28. The global production capacity of batteries for electric vehicles is expected to increase from below 200 GWh in 2019 to over 1,200 GWh in 2024, Trend reports, citing International Energy Agency (IEA).
“In 2021 China led global battery manufacturing capacity by controlling around 75 percent of the world’s total, followed by the US, Hungary and Germany. In 2024 China is expected to control two-thirds of the total, followed by the US (10 percent), Germany (5 percent), Norway (2 percent) and France (2 percent),” the report said.
Meanwhile, the growth in the sales of EVs is pushing for more investments in electrification. EV sales accounted for 45 percent of the overall end-user investment in the transport sector in 2021. The IEA estimates this share to increase to more than 55 percent in the current year.
“Demand for electrification is expected to grow stronger in 2022, but some uncertainty remains on the ability of automakers to keep up with orders. The forced shutdown of factories in China in response to surging COVID-19 cases and subsequent lockdowns are delaying production, as is the global semiconductor shortage that started in 2021. Car manufacturers in Europe and the United States were forced to temporarily halt production at several plants in early 2022,” the report said.
However, according to the IEA, the shortage is expected to ease in the second half of 2022, but manufacturers have warned that a return to normality is not in sight even as record-high investment has been announced in new production capacity, notably in the US.
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