Expect new battery chemistries for electric vehicles and a manufacturing boost thanks to government funding this year. BMW plans to invest $1.7 billion in their new factory in South Carolina to produce EVs and their batteries. AP Photo/Sean Rayford Every year the world runs more and more on batteries.
Projections are that more than 60% of all vehicles sold by 2030 will be EVs, and battery technology is instrumental in supporting that growth. Batteries also play a vital role in enhancing power-grid resilience by providing backup power during outages and improving stability in the face of intermittent solar or wind generation.
In the pursuit of next-generation battery technologies that go beyond the limitations of lithium-ion, it is important to look into the future and predict the trajectory of these advancements. By doing so, we can grasp the transformational potential these technologies hold for the global energy scenario.
The development of advanced battery technologies is gaining momentum, and it is vital to examine both their technical capabilities and their broader effects on the environment and the economy. (Blecua de Pedro et al., 2023).
The majority of battery demand for EVs today can be met with domestic or regional production in China, Europe and the United States. However, the share of imports remains relatively large in Europe and the United States, meeting more than 20% and more than 30% of EV battery demand, respectively.
As manufacturing capacity expands in the major electric car markets, we expect battery production to remain close to EV demand centres through to 2030, based on the announced pipeline of battery manufacturing capacity expansion as of early 2024.
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