The global electric vehicle (EV) battery market is forecast to post rapid growth to US$616 billion in 2035, a market tracker said Wednesday, with the China-based production likely to sharply shrink amid the EV-related policy revamps in the United States and Europe.
The projection marks a fivefold increase from $121 billion estimated for this year, according to a report by SNE Research, a Seoul-based energy market tracker.
Demand for EV battery production is expected to reach 5.3 terrawatt hours (TWh) globally in 2035, compared with 687 gigawatt hours (GWh) predicted for 2023.
The report said the combined production capacity of global top six battery makers, including South Korea's LG Energy Solution Ltd., Samsung SDI Co. and SK On Co., will likely stand at 5 TWh in 2035.
By region, the EV battery production in North America is expected to account for 31 percent of the global production, sharply growing from the current 6 percent, the report said, as battery makers are ramping up manufacturing in the region to qualify for U.S. tax credits under the U.S. Inflation Reduction Act.
The production in Europe will also rise to 27 percent from 12 percent, as the European Union is pushing for similar policy revamps to promote its local EV markets.
That will likely slash the production in China by about half to 38 percent in 2035, compared with 75 percent in 2022.
By 2035, EVs will take up about 90 percent of all cars sold globally, representing 80 million vehicles, the report said.
EVs accounted for about 13 percent in the entire vehicle market last year, a jump from around 1 percent between 2015 and 2017. Demand for EV batteries soared to 482 GWh from 28 GWh in the same period.
Source: Yonhap News Agency