Global EV battery market to grow fivefold to $616 bn in 2035

Seoul: The global electric vehicle (EV) battery market is forecast to post rapid growth to $616 billion in 2035, a market tracker said on Wednesday, with the China-based production likely to sharply shrink amid the EV-related policy revamps in the US and Europe.

The projection marks a fivefold increase from $121 billion estimated for this year, according to a report released by SNE Research, a Seoul-based energy market tracker.

Demand for EV battery production is expected to reach 5.3 terrawatt hours (TWh) globally in 2035, compared with 687 gigawatt hours (GWh) predicted for 2023.

The report said the combined production capacity of global top six battery makers, including South Korea’s LG Energy Solution, Samsung SDI and SK On will likely stand at 5 TWh in 2035, reports Yonhap news agency.

By region, the EV battery production in North America is expected to account for 31 per cent of the global production, sharply growing from the current 6 percent, the report said, as battery makers are ramping up manufacturing in the region to qualify for U.S. tax credits under the US Inflation Reduction Act.