Volta Foundation, a global network of battery professionals, said the battery market in 2024 was about electric vehicles (EVs) and challenges with the battery production supply chain.
Its 512-page annual report summaries the most significant developments of the battery industry.
- lower prices caused by the overcapacity of lithium-ion batteries
- surge in demand for plug-in hybrid EVs
- decline in growth of EV sales towards the end of the year.
New battery energy storage system (BESS) installations contributed over 45% of the current global capacity of 150GW/363GWh. Still, investment in battery factories slowed, with fewer venture capital or private equity deals, it said.
From a technological viewpoint, the report notes the trend towards medium-high voltage nickel-manganese-copper (NMC) cathodes and high-compaction lithium-ferro-phosphate (LFP) cathodes was clear.
Alternative cell chemistries such as sodium-ion, lithium-metal and solid-state batteries have advanced on their path towards commercialisation, it said.
Geopolitical conflicts boosted the development of domestic battery production in the USA, while problems with Northvolt in Sweden meant a backlash for the emerging European battery industry.
Volta said China still controls the raw material market and the gigafactories. Chinese investments in Europe and elsewhere diversify risks. South Korean battery makers made progress in Europe through joint ventures with leading US automotive companies, it said.
New supply clusters were formed in 2024 to reduce the influence of the Chinese companies.
The best profitability last year was found among primary material and component suppliers, for example lithium ore producers and cathode manufacturers, it said.
Venture capital companies directed part of their investment towards battery recycling. The amount of new EVs sold in 2024, up 25% to more than 17.7 million new units, will increase the amount of recyclable material.
The report also talks about safety issues, talent acquisition and the effect of possible tariffs on batteries by US president Donald Trump.
Volta Foundation claims over 70,000+ battery professionals and 150+ member companies.