The global battery industry is entering a new phase marked by rapid advancements and significant milestones, as reported by International Energy Agency (IEA). In 2024, annual battery demand surpassed 1 terawatt-hour (TWh) as electric vehicle (EV) sales grew by 25%, with 17 million units sold. Prices for EV battery packs have dropped below USD 100 per kilowatt-hour, reaching a key cost threshold for competitiveness with conventional vehicles. This price decline is driven by cheaper battery minerals, such as lithium, and improvements in battery manufacturing efficiency. With global production capacity set to triple in the next five years, the industry is shifting from regional to global markets, driven by economies of scale, technological standardization, and evolving supply chains. China remains the leading producer, but consolidation in the sector is expected as competition intensifies.
The rapid growth of the battery industry is also creating new opportunities for innovation in energy storage, crucial for supporting the transition to renewable energy. As countries and companies invest heavily in grid-scale storage projects, the focus is shifting to technologies that can provide long-duration storage and enhance grid stability. Battery storage is expected to play a critical role in balancing intermittent renewable energy sources like wind and solar, ensuring reliable power supply. Moreover, advancements in recycling technologies are becoming increasingly important to manage the growing volume of batteries, with the potential to reuse critical materials and reduce environmental impacts. This evolving landscape is shaping the future of both the electric vehicle and energy sectors.
