Total industry-wide investments in battery production facilities will need to reach US$220 billion up to 2035 to meet increasing demand for battery electric vehicles, according to a new forecast.
The investments total would be equivalent to 13% of battery suppliers’ revenue for the period, according to the Boston Consulting Group’s study— Where to profit as tech transforms mobility.
And nearly 60 new battery production facilities will need to be built globally by 2035 equivalent to Tesla’s new Gigafactory which has a planned annual producton capacity of 35 gigawatt-hours, the study said.
As a result, original equipment manufacturers “will find their market position challenged on multiple fronts over the next 15 years”, as suppliers such as BEV components manufacturers “gain greater influence”.
Companies such as China’s BYD, South Korea’s LG Chem and Samsung and Panasonic of Japan, have expanded their presence in the mobility industry by “becoming the dominant suppliers of batteries, the most expensive component of self-driving BEVs”, the study said.
