Demand for automotive energy storage explodes

Why did automotive lithium-ion battery demand increase 65% in 2022?

Automotive lithium-ion (Li-ion) battery demand increased by about 65% to 550 GWh in 2022, from about 330 GWh in 2021, primarily as a result of growth in electric passenger car sales, with new registrations increasing by 55% in 2022 relative to 2021.

How can battery and automotive industry players meet demand for EVs?

Battery and automotive industry players that act on three key areas can seize the moment to expand their revenues and profitability while serving vehicle owners’ demand for EVs. The shortage of EV batteries is one of the auto industry's major challenges for future growth. Focusing on three areas can help players meet demand.

Does China's EV deployment exacerbate supply risks under surging demand?

The unstable supplies of critical metals can exacerbate supply risks under surging demand. According to the contribution analysis, China’s EV deployment accounts for more than half of the total critical metal supply in the investigated areas.

Will fuel cell electric vehicles lead to a supply shortage of critical metals?

The current fuel cell electric vehicles (FCEVs) also adopt PGMs to catalyze electrode reactions, increasing the reliance of the transportation sector on the availability of PGMs. The booming EV market, therefore, may lead to the potential supply shortage of critical metals 21.

Can EV batteries supply short-term storage facilities?

For higher vehicle utilisation, neglecting battery pack thermal management in the degradation model will generally result in worse battery lifetimes, leading to a conservative estimate of electric vehicle lifetime. As such our modelling suggests a conservative lower bound of the potential for EV batteries to supply short-term storage facilities.

What is short-term energy storage demand?

Short-term energy storage demand is typically defined as a typical 4-hour storage system, referring to the ability of a storage system to operate at a capacity where the maximum power delivered from that storage over time can be maintained for 4 hours.