The world is moving towards electric vehicles (EVs) at an astonishing pace, and batteries are the backbone of this transition. Countries across the globe are investing heavily in gigafactories to meet the growing demand for EVs, energy storage, and industrial power solutions. Understanding the battery manufacturing landscape is crucial for investors, businesses, and policymakers looking to navigate this fast-changing industry. Below, we explore the latest market data, highlight top countries leading the charge, and analyze the gigafactory expansions shaping the future.
1. China leads global battery manufacturing with over 70% of the world’s production capacity
China is the undisputed leader in battery production, manufacturing more than 70% of the world’s lithium-ion batteries. The country’s dominance comes from its robust supply chain, abundant raw materials, and strong government support.
Companies like CATL, BYD, and Gotion High-Tech are expanding their facilities to maintain China’s leadership. The government’s aggressive policies, such as subsidies and tax incentives, further fuel this rapid growth.
For businesses looking to enter the battery sector, China is the best place for sourcing materials and production expertise. However, reliance on a single country for such a critical component raises supply chain risks, making diversification essential.
2. CATL (China) is the largest battery manufacturer, holding around 37% of the global market share
CATL (Contemporary Amperex Technology Co. Ltd.) is the biggest player in the battery industry. With a staggering 37% market share, the company supplies batteries to major automakers, including Tesla, BMW, and Volkswagen.
CATL’s competitive edge lies in its continuous investment in R&D. The company is pioneering next-generation battery technologies, such as sodium-ion and ultra-fast charging cells.
For businesses, partnering with CATL ensures access to cutting-edge battery solutions. However, as competition grows, diversifying supplier relationships could be a smart move.
3. BYD (China) ranks second in battery production, surpassing 10% market share
BYD, another Chinese giant, has gained significant ground in the battery sector. Originally an automaker, BYD now produces some of the most advanced lithium-iron-phosphate (LFP) batteries.
The company’s Blade Battery has revolutionized battery safety and lifespan, making it a preferred choice for EV manufacturers. Unlike nickel-based batteries, LFP batteries are cheaper and more stable.
For businesses, investing in BYD’s technology means getting access to safer and more cost-effective battery solutions. As the demand for LFP batteries grows, companies should consider integrating them into their product lines.
4. South Korea accounts for approximately 15% of global battery production capacity
South Korea is home to some of the world’s top battery manufacturers, including LG Energy Solution, SK On, and Samsung SDI. These companies supply batteries to global automakers like Ford, General Motors, and Hyundai.
The South Korean government is actively supporting battery development through subsidies and joint ventures. Businesses looking for high-quality battery production with strong safety standards should consider South Korean suppliers.
However, competition from China is intense, and companies must focus on innovation to stay ahead. South Korean firms are increasingly investing in solid-state battery technology, which could be the next big breakthrough.
5. LG Energy Solution (South Korea) holds around 13% of the global EV battery market
LG Energy Solution is a key player in the battery industry, holding a solid 13% market share. The company supplies batteries to Tesla, Volkswagen, and other major automakers.
LG’s focus on high-nickel batteries has made it a preferred choice for long-range EVs. The company is expanding its production facilities in Europe and North America to reduce reliance on Chinese supply chains.
Businesses looking for high-performance battery solutions should consider LG as a supplier. However, high-nickel batteries come with cost and safety challenges that must be carefully managed.
6. Japan contributes nearly 7-10% of global battery capacity, with Panasonic leading its sector
Japan has been a pioneer in lithium-ion battery technology for decades. Panasonic, a long-time partner of Tesla, leads the country’s battery manufacturing efforts.
The company is focusing on developing 4680 battery cells, which promise higher energy density and lower costs. Other Japanese firms, like Toyota, are betting on solid-state batteries.
For businesses, Japan offers high-quality battery solutions with strong safety and longevity. However, production costs are higher compared to China and South Korea, making pricing a key factor to consider.
7. Panasonic has a strong partnership with Tesla, producing cells for Gigafactory Nevada
Panasonic and Tesla have a long-standing partnership, with Panasonic supplying battery cells for Tesla’s vehicles. The company operates inside Tesla’s Gigafactory Nevada, which has an annual production capacity of 35 GWh.
Panasonic’s deep involvement in Tesla’s supply chain provides insights into the future of battery technology. Businesses can learn from this partnership by forming strategic alliances with automakers to secure long-term contracts.
8. Tesla’s Gigafactory Nevada has a battery capacity of over 35 GWh annually
Tesla’s Gigafactory Nevada is one of the world’s largest battery production facilities, producing batteries for Tesla’s Model 3 and energy storage products.
The factory plays a key role in Tesla’s mission to reduce battery costs. For businesses, Tesla’s gigafactory model shows the importance of vertical integration and large-scale production.
9. Europe is rapidly expanding, with planned battery production capacity exceeding 500 GWh by 2030
Europe is investing heavily in battery production to reduce reliance on Asian suppliers. The European Union has launched initiatives to support local battery manufacturing, aiming for over 500 GWh capacity by 2030.
Companies like Northvolt, CATL, and LG Energy Solution are leading Europe’s battery expansion. For businesses, this presents an opportunity to tap into a growing market with strong government backing.
10. Northvolt (Sweden) is building multiple gigafactories, targeting 150 GWh annual capacity by 2030
Northvolt is Europe’s biggest battery startup, founded by former Tesla executives. The company aims to produce 150 GWh of batteries annually by 2030, focusing on sustainable production methods.
Northvolt’s emphasis on using recycled materials and renewable energy sets it apart. Businesses looking for eco-friendly battery solutions should consider Northvolt as a supplier.
11. Germany leads Europe’s battery manufacturing, with major plants from Tesla, CATL, and Northvolt
Germany is positioning itself as Europe’s battery hub. Tesla’s Gigafactory Berlin, CATL’s German plant, and Northvolt’s expansion are making the country a major player in battery production.
The German government is offering incentives to attract battery investments. Businesses should consider Germany as a strategic location for battery manufacturing or partnerships.
12. Tesla Gigafactory Berlin aims for 100 GWh annual battery production capacity
Tesla’s Berlin Gigafactory is set to become one of Europe’s largest battery plants, with a planned capacity of 100 GWh per year.
This plant will supply Tesla’s European operations and reduce dependency on imported batteries. Businesses can learn from Tesla’s strategy of localizing battery production to minimize logistics costs.
13. France plans to have at least four gigafactories operational by 2028
France is stepping up its game in battery production, aiming to establish four large-scale gigafactories by 2028. This move is part of the country’s strategy to strengthen its domestic EV supply chain and reduce reliance on Asian imports.
Key players in France’s battery expansion include Automotive Cells Company (ACC), Verkor, and Saft. These companies are receiving strong government support, including subsidies and tax incentives. France’s gigafactories are expected to focus on sustainable production, with heavy investments in low-carbon manufacturing and battery recycling.
For businesses, France offers a strategic location within Europe, skilled labor, and strong government backing. Companies looking to establish partnerships or supply chains in Europe should consider France as a key location.
14. Italy is set to develop over 40 GWh of annual battery capacity
Italy is making strides in battery manufacturing, planning to develop over 40 GWh of battery production capacity. The country is investing in gigafactories and research centers to support its growing EV industry.
Major players in Italy’s battery expansion include Italvolt and Stellantis, both of which are working on large-scale production plants. The government is supporting these projects with funding and tax breaks, ensuring that Italy remains competitive in the European market.
For businesses, Italy offers opportunities in battery manufacturing, supply chain partnerships, and R&D collaborations. Companies involved in raw materials processing, battery recycling, and logistics can benefit from Italy’s growing battery sector.
15. Spain has announced a 4.5 billion euro investment in gigafactories
Spain is making a bold move in battery production, committing 4.5 billion euros to expand its gigafactory capacity. The Spanish government is prioritizing battery manufacturing as part of its green energy transition, ensuring that the country remains a major player in the European EV market.
Volkswagen’s PowerCo unit is leading one of the biggest projects in Spain, with plans for a 40 GWh gigafactory. Other companies, such as Envision AESC, are also investing in Spanish battery production.
For businesses, Spain offers significant government incentives, a strong industrial base, and proximity to major European car manufacturers. Companies in battery technology, recycling, and energy storage solutions should explore opportunities in Spain.
16. United States accounts for around 10-12% of the global battery production capacity
The U.S. has been rapidly increasing its battery production capacity, now accounting for about 10-12% of global supply. Thanks to the Inflation Reduction Act (IRA) and various federal incentives, battery production in the U.S. is set to expand significantly over the next decade.
Major investments from Tesla, GM, Ford, Panasonic, and LG Energy Solution are driving this growth. The U.S. government is prioritizing domestic battery production to reduce reliance on China and strengthen its energy security.
For businesses, the U.S. battery sector offers investment opportunities, supply chain partnerships, and funding incentives. Companies involved in battery components, minerals processing, and recycling should look into the U.S. market.
17. Ford and SK Innovation are building BlueOval SK plants with a 129 GWh planned capacity
Ford and South Korea’s SK Innovation have formed a joint venture, BlueOval SK, to develop battery plants in the U.S. With a planned 129 GWh capacity, these plants will supply Ford’s electric vehicles, including the F-150 Lightning and Mustang Mach-E.
The BlueOval SK initiative highlights the importance of automaker-battery manufacturer partnerships. By securing battery supply internally, Ford is reducing risks related to global supply chain disruptions.
For businesses, this model presents opportunities in materials sourcing, advanced battery technologies, and supply chain logistics. Companies providing cathodes, anodes, separators, and battery management systems should explore partnerships with automakers expanding their battery production.
18. General Motors’ Ultium Cells project will have over 140 GWh annual production by 2030
General Motors (GM) is making a massive push into battery production through its Ultium Cells project. With planned gigafactories in Ohio, Tennessee, and Michigan, Ultium Cells will produce over 140 GWh annually by 2030.
GM’s strategy revolves around cost-efficient battery production and flexible cell designs. The Ultium platform allows for customizable battery packs, making it easier to scale EV production across different vehicle models.
Businesses looking for opportunities in modular battery designs, energy storage applications, and supply chain logistics should monitor GM’s Ultium developments closely.
19. Panasonic’s Kansas factory will add 30 GWh of battery capacity annually
Panasonic is expanding its U.S. footprint with a 30 GWh gigafactory in Kansas. This facility will primarily produce batteries for Tesla and other automakers, strengthening North America’s battery independence.
The Kansas plant will focus on next-generation high-density batteries, including 4680 cylindrical cells. These batteries promise higher energy efficiency, longer range, and lower costs.
For businesses, Panasonic’s expansion means opportunities in battery components, manufacturing automation, and supply chain logistics. Companies specializing in battery testing, safety solutions, and materials recycling will find strong demand.
20. South Korea’s SK On plans to increase battery production capacity to 500 GWh by 2035
South Korea’s SK On is aggressively expanding its global battery production, aiming for 500 GWh by 2035. The company is investing in North America, Europe, and Southeast Asia to reduce dependence on Chinese suppliers.
SK On’s nickel-rich battery technology is gaining traction, offering higher energy density and faster charging times. The company is also investing in solid-state battery research, positioning itself as a leader in next-generation battery technology.
Businesses should explore partnerships with SK On for supply chain collaborations, R&D investments, and advanced battery technologies.
21. China’s CATL is investing over $7.6 billion in new battery plants in Europe and North America
CATL is not just dominating China’s battery market—it is also expanding aggressively into Europe and North America. The company is investing over $7.6 billion in new battery plants to serve the growing demand from global automakers.
These investments reflect the increasing need for localized battery production to reduce shipping costs and trade risks. CATL’s new factories will focus on high-efficiency LFP batteries, which offer a cheaper alternative to nickel-based cells.
For businesses, this expansion means increased competition but also new opportunities in battery supply chains, raw material processing, and battery recycling.
22. India is developing its first large-scale gigafactories, targeting 50 GWh by 2030
India is emerging as a key player in battery manufacturing, aiming to build 50 GWh of gigafactory capacity by 2030. The Indian government has launched the Production-Linked Incentive (PLI) scheme, offering billions in incentives for battery production.
Companies like Reliance, Ola Electric, and Tata Chemicals are leading the charge. With a growing EV market, India is focusing on domestic battery production and lithium refining.
Businesses should look at India as a low-cost manufacturing hub with huge domestic demand. Opportunities exist in raw material processing, battery assembly, and infrastructure development.
23. Vietnam is emerging as a new battery hub, with VinFast investing in a GWh-scale factory
Vietnam is making a name for itself in the battery industry, thanks to VinFast’s aggressive expansion. The company is building a gigafactory to supply batteries for its growing EV lineup.
Vietnam’s low-cost manufacturing and skilled workforce make it an attractive destination for battery investments. As Southeast Asia’s demand for EVs grows, Vietnam is poised to become a key supplier.
For businesses, Vietnam offers opportunities in battery assembly, supply chain partnerships, and materials processing.
24. Indonesia is leveraging its vast nickel reserves, planning several gigafactories with LG Energy and CATL
Indonesia is rapidly becoming a global hotspot for battery production, thanks to its vast nickel reserves, a key component in lithium-ion batteries. The country controls nearly 40% of the world’s nickel supply, making it an essential player in the EV battery supply chain.
To capitalize on this advantage, LG Energy Solution, CATL, and Hyundai are investing in large-scale nickel refining and battery production plants in Indonesia. The Indonesian government has also banned the export of raw nickel, ensuring that the value-added processing happens within the country.
For businesses, Indonesia presents opportunities in nickel mining, battery-grade nickel processing, and battery production partnerships. Companies should also explore joint ventures with established battery manufacturers to leverage Indonesia’s strategic position.
25. The UK is investing heavily in gigafactories, with Britishvolt planning 30 GWh capacity
The UK is pushing forward with battery manufacturing to support its ambitious EV transition goals. Britishvolt, a startup aiming to establish a 30 GWh gigafactory, has been at the center of these efforts.
The UK government has committed hundreds of millions in funding to support battery projects, aiming to strengthen domestic supply chains and reduce reliance on Asian imports. Major automakers like Nissan and Jaguar Land Rover are also looking to source batteries from UK-based factories.
For businesses, the UK offers strong government backing, a skilled workforce, and proximity to European automakers. Companies looking to invest in battery production, supply chain logistics, and research collaborations should consider opportunities in the UK.
26. Tesla’s Shanghai Gigafactory has expanded battery production to over 80 GWh per year
Tesla’s Shanghai Gigafactory is not just a car production facility—it is also a major battery production hub, now capable of producing over 80 GWh per year. This expansion allows Tesla to meet the massive demand for EVs in China and globally.
By locating battery production close to its biggest market, Tesla reduces costs and improves efficiency. The factory benefits from China’s advanced supply chain and lower labor costs, making it one of Tesla’s most efficient production sites.
For businesses, Tesla’s Shanghai model is a case study in localization, cost efficiency, and supply chain optimization. Companies should consider setting up battery production near high-demand markets to improve logistics and cost efficiency.
27. Battery production costs have dropped by over 80% since 2010, now below $100/kWh for some manufacturers
The cost of battery production has fallen dramatically over the past decade, dropping by more than 80% since 2010. Today, some manufacturers can produce batteries for less than $100 per kilowatt-hour (kWh), a key milestone for making EVs cost-competitive with gas-powered cars.
This price drop has been driven by economies of scale, technological improvements, and better raw material sourcing. Companies like CATL, Tesla, and LG Energy Solution have all worked to cut costs through vertical integration and improved battery chemistry.
For businesses, this trend means lower costs for EV production, increased adoption of energy storage systems, and greater demand for battery components. Companies in raw materials, recycling, and supply chain management should look for opportunities in this fast-growing sector.
28. Lithium demand is projected to grow by over 500% by 2040 due to battery production
Lithium is a critical component of EV batteries, and demand is expected to increase by more than 500% by 2040. As EV adoption accelerates and grid-scale energy storage expands, lithium shortages could become a serious challenge.
Countries like Australia, Chile, and Argentina control the majority of the world’s lithium supply. However, new sources, such as lithium extraction from seawater and alternative battery chemistries, are being developed to address supply concerns.
For businesses, the lithium boom presents opportunities in mining, battery recycling, and alternative battery materials. Companies should also monitor emerging solid-state and sodium-ion battery technologies, which could reduce dependence on lithium.
29. Solid-state batteries could enter mass production by 2027, potentially revolutionizing the industry
Solid-state batteries are widely regarded as the next big breakthrough in battery technology. Unlike traditional lithium-ion batteries, solid-state batteries replace liquid electrolytes with solid materials, resulting in higher energy density, faster charging times, and improved safety.
Companies like Toyota, QuantumScape, and Solid Power are leading the charge in developing commercially viable solid-state batteries. While technical challenges remain, mass production could begin as early as 2027.
For businesses, solid-state batteries present a huge opportunity in R&D, manufacturing, and investment. Companies should consider partnering with solid-state battery startups, investing in next-gen battery technologies, and preparing for a shift in supply chain needs.
30. Battery recycling industry is set to become a $20 billion market by 2030 due to gigafactory waste management
As battery production skyrockets, so does the need for battery recycling. By 2030, the battery recycling industry is expected to be worth over $20 billion, driven by gigafactory waste management and end-of-life EV batteries.
Recycling companies like Redwood Materials, Li-Cycle, and Umicore are developing technologies to recover lithium, cobalt, and nickel from used batteries. Governments worldwide are also introducing regulations to encourage battery recycling and reduce dependence on raw materials.
For businesses, the battery recycling boom presents opportunities in urban mining, materials recovery, and closed-loop battery supply chains. Companies in waste management, battery refurbishing, and chemical processing should invest in this high-growth sector.
wrapping it up
The global battery industry is at a pivotal moment, shaping the future of transportation, energy storage, and industrial power solutions. With massive investments flowing into gigafactories, key players are racing to expand production capacity, secure raw materials, and develop next-generation technologies.
