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Worldwide production of batteries with LFP cathodes takes place mainly in China, where it accounts for just over a third of total battery production. In contrast, the production of battery cells with NMC cathodes accounts for slightly more than a quarter in China.
LFP cell production in the U.S. turns out to be relatively small and thus also accounts for only a small share of global production. In Europe, the production of NMC battery cells will clearly predominate in 2030. In the course of the coming decade, European NMC battery cell production will therefore also account for an increasingly relevant share.
Global production of battery cells will increase sharply in the coming years, and cathode materials will be newly and further developed. Nevertheless, the market shares of these two technologies are expected to remain high until the end of the decade. This can be attributed to several aspects.
If the announcements in Europe are actually implemented at the targeted rate, NMC battery cell production in Europe would even be larger than in China by 2030. The data used in this article comes from the BEMA2020 research project, which is funded by the German Federal Ministry of Education and Research (grant number 03XP0272B).
European countries collectively make up for 68 GWh or around 10% of global battery manufacturing. Moreover, Hungary and Poland also make the top five, hosting plants owned by large battery manufacturers like SK Innovation and LG Chem.
Although China is expected to come out on top again, its share of worldwide capacity could fall to around 65% as other countries ramp up battery production. For instance, Germany’s capacity is projected to rise to 164 GWh, representing a 15-fold increase in just four years.
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