Yole: Electric Vehicle Battery Market Expected to Grow 16.9% by 2028

　The market for lithium-ion battery packs for pure electric and plug-in hybrid vehicles will grow to about $180 billion by 2028, at a CAGR of 16.9% and a compound annual growth rate (CAGR) of 22-28, according to Yole Developpement.

　The battery supply chain is dominated by Asian companies: 57% in China, 25% in South Korea and 7% in Japan.

　The demand for recycling large quantities of end-of-life xEV battery packs will grow in the coming years.

　According to Yole.ev, total annual demand for lithium-ion battery packs used in plug-in hybrids and pure electric vehicles is expected to grow dramatically, surging from about 430 GWh in 2022 to about 1,500 GWh in 2028.

　This represents a more than threefold increase in demand. The main driver of this demand will be pure electric vehicle applications, which are expected to require 1,370 GWh of battery capacity by 2028, accounting for 90% of the total market.

　"The overall annual market for lithium-ion battery packs designed for BEVs and PHEVs is expected to expand from approximately $70 billion in 2022 to approximately $180 billion in 2028," said Yole's Shalu Agarwal. "CATL from China is the leading manufacturer in terms of EV batteries by 2022, followed by LG Energy Solution, BYD from China and Panasonic from Japan. Europe is focused on establishing local battery suppliers, while U.S. automakers are primarily partnering with Asian suppliers, such as Tesla with Panasonic, LG Energy Solution and Ningde Times, and General Motors with LG Energy Solution."

　Battery capacity is expanding rapidly, with manufacturers announcing expansion plans, particularly in regions with xEV manufacturing facilities.

　Many Chinese companies, including BYD, Ningde Times, Guoxuan, and YWL, plan to add capacity in countries such as India, Indonesia, Thailand, and Vietnam.

　Automotive Battery Pack Market Share 2021-2022

　Due to the surge in demand for electric vehicles, there is an urgent need to increase battery manufacturing capacity.

　Forecasts indicate that global battery manufacturing capacity