Seoul-based energy market tracker, SNE Research, has reported that the global electric vehicle (EV) battery market is expected to witness remarkable growth, reaching $616 billion by 2035, as compared to the estimated $121 billion in 2021.

This growth is due to the rising demand for EV battery production, which is predicted to reach 5.3 terrawatt hours (TWh) globally in 2035. In contrast, it was predicted to be 687-gigawatt hours (GWh) in 2023.

The report reveals that the combined production capacity of the six leading battery manufacturers, including South Korea's LG Energy Solution, Samsung SDI, and SK On, is anticipated to stand at 5 TWh in 2035. Moreover, it is predicted that EVs will constitute about 90% of all cars sold globally, accounting for 80 million vehicles.

According to the report, the production of EV batteries in North America is expected to grow sharply to 31% of global production from the current 6%. Meanwhile, the European Union is pushing for policy reforms to promote its local EV markets, and the production of EV batteries is likely to increase to 27% from 12% in Europe. On the other hand, production in China will likely decrease to 38% in 2035 from 75% in 2022 due to policy changes in the US and Europe.

The report also predicts that solid-state batteries, which use a solid electrolyte instead of the liquid and gel electrolytes used in lithium-ion batteries, will account for 10-13% of the secondary cell market by 2035. Furthermore, commercial production of solid-state batteries is expected to begin in earnest around 2030, with a capacity of 950 GWh by that time.

Solid-state batteries have a larger energy density, allowing for a greater driving range. Samsung SDI aims to begin commercial production of its solid-state batteries in 2027. LG Energy Solution is also working to mass-produce two types of solid-state batteries, polymer-based and sulfide-based, starting in 2026 and 2030, respectively.

SNE Research's report highlights the growth of the EV battery market, which is expected to transform the automotive industry, with EVs constituting a vast majority of all cars sold globally.

The anticipated rise in demand for solid-state batteries further indicates the increasing significance of EV technology.

References:

- Global EV battery market to grow fivefold to USD 616 bn in 2035
- The global electric vehicle battery market is expected expand more than fivefold to $616 billion by 2035