Overview

Industry Summary 2024 marked a year of continued growth and adaptation in the global battery industry. Global xEV sales climbed 25% to 17.7M units, with BEV demand up 14% while PHEV

demand surged 50%. For the first time, BEVs in China have reached price parity with fossil vehicles. This milestone comes as China continues to lead the world in EV market penetration, with xEVs accounting for 45% of new car sales. Automakers globally are adapting their strategy, with Chinese automakers expanding into Europe and the Global South, while some traditional OEMs cut back on EV targets and investments. The 'BESS Decade' continues to gain momentum with 55% year-on-year growth. Battery Energy Storage Systems BESS) now account for 15% of total battery deployments, up from 7% in 2020, highlighting its rapid adoption. New BESS installations in 2024 alone contributed over 45% of the current cumulative global capacity of 150 GW / 363 GWh, underscoring BESSʼs significance as one of the most promising and fast-growing sectors in the battery industry landscape. Battery prices at the pack level saw the largest drop since 2017, improving 20% from 2023 to a record low of $115/kWh. Global battery manufacturing capacity increased from 1.05 TWh to 1.45 TWh in 2024. Overcapacity across the battery supply chain drove cell prices to the unsustainably low level of $50/kWh for China-made LFP cells, resulting in involutionary competition and investment pullback. New Chinese industrial policy aimed at phasing out low-quality capacity added further pressure. For battery producers navigating this challenging pricing environment, current strategic focus include cost reduction, technological innovation, vertical integration, and diversification into overseas markets in search of higher profit margins. China continues to dominate the supply chain, owning 80% of key cell components and cells. The battery investment landscape in 2024 slowed, with fewer VC/PE deals due to higher interest rates and geopolitical tensions. While growth was supported by significant debt raises and government funding—such as Northvolt ETT ABʼs €5 billion green offering and the US DOEʼs $9.6 billion loan to BlueOval SK—the bankruptcy of Northvolt highlighted risks in the sector, dampening investor confidence. Public market performance was mixed, with established battery OEMs benefiting from new product launches, while shares in EV startups, charging infrastructure, and lithium companies underperformed. The US DOE supported the sector by investing over $3 billion into 25 projects to bolster domestic battery production and supply chains in the United States. Emerging technology trends in 2024 include the introduction of medium-nickel high-voltage NMC and high-compaction-density LFP cathodes. Significant strides were made in the commercialization of dry electrode processing, LxFP, engineered silicon, and pre-lithiated anodes, all aimed at improving energy density, cost, and safety. Alternative cell chemistries, such as Na-ion, solid-state batteries SSB, sulfur, and Li-metal, also progressed toward commercialization. Notably, sodium-ion and semi-solid state products, primarily developed by Chinese manufacturers, are now being integrated into commercial EVs and BESS systems. Novel use cases such as EVTOL, marine, and data centers are achieving higher levels of technical readiness. Notably, artificial intelligence AI) is quickly being deployed across the entire value chain from materials discovery to fleet data analytics to accelerate the advancement of these technologies and is emerging as a new focus for commercial R&D and entrepreneurial energy in the space.

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