Battery energy storage systems (BESS) will have a CAGR of 30 percent, and the GWh required to power these applications in 2030 will be comparable to the GWh needed for all applications today. China could account for 45 percent of total Li-ion demand in 2025 and 40 percent in 2030—most battery-chain segments are already mature in that country.
This work is independent, reflects the views of the authors, and has not been commissioned by any business, government, or other institution. Global demand for batteries is increasing, driven largely by the imperative to reduce climate change through electrification of mobility and the broader energy transition.
Battery sales are growing exponentially up classic S-curves that characterize the growth of disruptive new technologies. For thirty years, sales have been doubling every two to three years, enjoying a 33 percent average growth rate. In the past decade, as electric cars have taken off, it has been closer to 40 percent.
How fast are battery sales growing?
For thirty years, sales have been doubling every two to three years, enjoying a 33 percent average growth rate. In the past decade, as electric cars have taken off, it has been closer to 40 percent. Exhibit 1: Global battery sales by sector, GWh/y
Are batteries putting half of global fossil fuel demand at risk?
The unstoppable rise of batteries is leading to a domino effect that puts half of global fossil fuel demand at risk. Battery demand is growing exponentially, driven by a domino effect of adoption that cascades from country to country and from sector to sector.
What is the global market for lithium-ion batteries?
The global market for Lithium-ion batteries is expanding rapidly. We take a closer look at new value chain solutions that can help meet the growing demand.
Are 2/3w batteries more important in emerging economies?
This also affects trends in different regions, given that 2/3Ws are significantly more important in emerging economies than in developed economies. As EVs increasingly reach new markets, battery demand outside of today's major markets is set to increase.