EV and Energy storage battery market
UBS global auto analysts forecast EV sales to grow at a compound annual growth rate (CAGR) of 46% between 2020 and 2025. According to Bloomberg this growth will see electric vehicles making up 35% of global car sales by 2040.
According to Forbes, the energy storage market is also forecast for growth with the market seeing falling pricing and favourable policies coming into effect. GTM Research and the Energy storage association estimates the annual value of the US energy storage market will exceed US $1.2 billion in 2019.
Government policies continue to drive investments in batteries, EVs and charging infrastructure but investments in raw materials is lagging.
The growth of EV is driving demand for natural graphite and other raw materials. As EV and lithium-ion ESS penetration rates rise in China and the rest of the world, Roskill Information Services forecasts total global graphite demand in battery applications to rise by 16-26% per year to 2026.
Graphite is the key anode material in Lithium Ion batteries and Benchmark Minerals Intelligence now estimate that graphite supply is a concern.
Based on Benchmark Minerals Intelligence forecast Mega Factory growth, 1.2 million to 1.5 million tonnes of natural flake graphite will be needed each year for mega factory demand only.
Benchmark Minerals Intelligence forecasts a flake graphite supply deficit is forecast as early as 2025 even after factoring highly probable, probable and possible additional tonnes from global projects.
Worldwide the automotive industry is getting ready.
Tesla has invested US$5 billion and is ramping up lithium-ion battery production at its US ‘Gigafactory’ and is expected to announce a second factory to supply Europe later in 2017. Other large lithium-ion battery plants include BMC in Germany and LG Chem in Poland, Samsung SDI in Hungary(due to open in 2018), SGF Energy in Sweden is also building a plant, which could be shared between Jaguar Land Rover, BMW and Ford.
Key growth drivers.
Worldwide cities are coming under increasing pressure to cut pollution levels and EVs could provide an answer.
The signing of the the Paris agreement in December 2015 is the first universal legally binding global climate deal and it is driving long term legislative change across many countries simultaneously – as countries seek to meet the global action plan by limiting global warming to 2 degrees Celsius.
China has implemented legislative changes that are placing equal importance on environmental protection as economic growth. Environmental policies are now being strictly enforced.
Technology developments resulting in advancements in renewable energy and renewable energy is increasingly becoming part of the energy solution
Battery storage the next step in the evolution to the energy mix.