Export battery energy storage power supply

What is the Chinese battery ecosystem?

The Chinese battery ecosystem covers all steps of the supply chain, from mineral mining and refining to the production of battery manufacturing equipment, precursors and other components, as well as the final production of batteries and EVs. Chinese producers have prioritised lithium-iron phosphate (LFP), a cheaper battery chemistry.

Which countries manufacture NMC batteries?

Korea and Japan are already major players in the global battery industry, home to key battery makers and specialised suppliers with strong expertise in NMC batteries. Both countries have limited domestic battery production but host established manufacturers with significant overseas investments.

Which countries are a potential production hub for EV batteries?

Battery demand for stationary applications has increased by over 60% annually for the past two years, opening up a demand stream beyond EVs, albeit smaller in volume. In the meantime, Southeast Asia and Morocco are emerging as potential production hubs for batteries and their components.

Why are battery production plans cancelled in Europe?

Many battery producers in Europe are postponing or cancelling expansion plans because of uncertainty about future profitability. Production costs in the region are about 50% higher than in China; meanwhile, the battery supply chain ecosystem is still relatively weak and a lack of specialised workers persists.

Why are Korean batteries losing a quarter of Europe's market share?

Over the past two years, Korean manufacturers – traditionally the largest battery manufacturers in Europe – have lost almost one quarter of their market share in the European Union, which dropped from nearly 80% in 2022 to 60% in 2024 in part due to the increased success of LFP batteries made in China.

Is the battery industry entering a new phase of development?

After years of investments, global battery manufacturing capacity reached 3 TWh in 2024, and the next five years could see another tripling of production capacity if all announced projects are built. These trends point to a battery industry entering a new phase of its development.