Global battery demand is poised to surge, quadrupling to 4,100 gigawatt-hours (GWh) between 2023 and 2030, driven largely by the increasing adoption of electric vehicles (EVs), according to a new report by Bain & Company. The report underscores the need for original equipment manufacturers (OEMs) to refine their battery strategies, given the pivotal role batteries play in determining cost and performance.
Mahadevan Seetharaman, a partner at Bain & Company’s Advanced Manufacturing Services practice, highlighted the challenges OEMs face in selecting battery types and deciding between in-house development or collaboration. The report outlines five key trends that will shape the EV battery market by 2030, including the continued dominance of lithium-ion batteries, the rise of lithium-iron-phosphate (LFP) and nickel manganese cobalt (NMC) chemistries, and the emergence of solid-state and sodium-ion technologies.
Lithium-ion batteries are expected to remain the leading technology, while LFP and NMC will dominate cathode chemistries. Despite advancements in solid-state and sodium-ion batteries, their market share is anticipated to be limited soon. The report also predicts significant advancements in battery technology, including cost reductions and improved performance.
Additionally, the demand for recycling is expected to grow substantially, driven by global regulations and the increasing volume of spent batteries. OEMs and battery manufacturers are exploring innovative business models, such as battery rentals, to manage ownership and recycling responsibilities.
As the global EV market continues to expand, the choices OEMs make today regarding battery technology will have long-lasting impacts on the industry’s future.
