China will continue to dominate the battery market till at least 2027, controlling six of the world's top ten manufacturers

China will continue to dominate the battery market till at least 2027, controlling six of the world' ...

Many countries are focusing on the development of batteries as the world transitions to an electric mobility age. However, China is leading the way and will remain in first place until at least 2027.

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Visual Capitalist compared battery production capacity by country in 2022 and 2027, highlighting China's dominance.

China's battery manufacturing capacity exceeded that of the rest of the world in 2022. With nearly 900 GWh of capacity or 77 percent of total production, China has six of the world's top 10 battery manufacturers (China's CATL (Contemporary Amperex Technology Co Ltd) was the world leader in 2021 with a market share of 32.5%).

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China's battery dominance is attributed to its vertical integration throughout the EV supply chain, from metal mining to EV manufacturing. It is also the largest market for electric vehicles, accounting for 52% of global sales in 2021.

Poland is second with less than one-tenth of China's power. Wroclaw is the birthplace of the largest LG Energy Solution gigafactory in Europe and one of the world's largest. In 2022, European countries (including non-EU countries) accounted for only 14% of global battery production capacity.

The United States is a leading lithium-ion battery manufacturer in China, although it is also one of the world's leading manufacturers of lithium-ion batteries in the 1970s and 1980s.

In 2027, global lithium-ion manufacturing capacity is expected to quadruple in the next five years, according to studies. Here are the top ten nations by projected battery manufacturing capacity.

China's established advantage will continue to exist until 2027, with 69 percent of the world's battery capacity.

The United States is expected to expand its capacity by more than ten times over the next five years, thanks to electric vehicle tax credits established by the Inflation Reduction Act. Such subsidies are likely to help manufacturers of electric cars made from domestic materials. Toyota, SK Innovation, and LG Energy Solution have all announced recent investments in battery manufacturing in the United States.

Six of the top ten battery producing countries will be represented in Europe in 2027, including Volkswagen, CATL, and SK Innovation in South Korea.

China's dominance is unmatched despite growing goods in North America and Europe.

Battery manufacturing is only one component of the puzzle, although it is the most important. The majority of components and metals that make up the battery, such as lithium, electrolytes, separators, cathodes, and anodes, are manufactured in China.

The fight against China's near-monopoly will be costly. According to Bloomberg, the United States and Europe will need $87 billion and $102 billion to meet domestic demand for batteries from local supply chains by 2030.

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