The Next 12 Months

2025 PREDICTIONS 1.

Global EV demand will continue to rise, driven by the introduction of mid- and low-priced options, charging network expansion, and wider public acceptance. xEV sales to top 20M units for the first time.

PHEV will continue to gain market share driven in part by larger mix of Chinese imports to Europe. PHEV demand to grow 50%.

BESS demand will continue to gain momentum, driven by improving economics, increased renewable energy integration, demand from AI data centers, and streamline interconnection processes. BESS demand to grow 50%.

Global business models will mature further in 2025, driven by the establishment of JVs and technology licensing agreements between leading manufacturers, technology innovators, and key market stakeholders. 5+ major JVs to be announced.

Startup cell manufacturers will achieve significant milestones, with C-sample solid-state batteries entering advanced validation stages in 2025. However, scaling to production will face challenges due to raw material constraints and the limited availability of high-end production equipment, potentially slowing commercialization timelines.

Inflation Reduction Act IRA will continue to drive growth in the U.S. battery industry in 2025, with its tax incentives and manufacturing credits (e.g., 45X) catalyzing investments in domestic production facilities and supply chains. Political uncertainties and potential modifications to key provisions, such as clean energy tax credits and critical mineral sourcing requirements, may introduce short-term challenges. Despite this, bipartisan support for job creation and regional economic benefits will sustain the momentum for domestic battery manufacturing.

Extracted from the PDF; charts and images may read imperfectly.