Battery Industry Revenues Likely to Exceed $168 Billion by 2030
According to a new report, the battery industry's sales are expected to surpass $168 billion by 2030 amid severe raw material shortages. A compound annual growth rate (CAGR) of 14 per cent is expected by 2030, but global raw material shortages are likely to prevail from 2025.
According to GlobalData, a data and analytics company, the extraction of raw materials will not meet the surging demand unless capital markets change course in the face of environmental, social, and governance (ESG) pressures.
Daniel Clarke, an analyst in the thematic intelligence team, said: "Governments must play a greater role in incentivising mining, refining, and battery cell production."
The extraction of natural resources and raw materials to meet the increasing demand for batteries, including lithium, nickel, cobalt, and graphite, will be a growing challenge for the next decade or two.
Clarke said, "More gigafactories may be announced, but where will all the raw materials come from? Despite being finite, these materials are not rare, and greater investment is needed."
A new clean energy battle has been raging throughout the lithium-ion battery supply chain as the world focuses on geopolitical tugs of war over energy between Russia and the western world.
China seems to enjoy a monopoly at various stages of the supply chain and maintains a strong position in mining, refining, and cell production.
Michael Orme, an analyst, said, "China-based battery manufacturer CATL is part of the 'China Inc master plan' to dominate the highly strategic global battery industry and, in the process, the global electric vehicle (EV) scene."
Source: Economic Times