Global Lithium-ion Battery Capacity Will Reach 5.4 TWh By 2036

 

Global lithium-ion battery capacity will reach 5.4 TWh by 2036, with frequent delays in the construction of Gigafactories in China, the US, and Europe.

 

IDTechEx research shows that the global lithium-ion battery market will exceed $325 billion by 2036, with a CAGR of 7.0%. Global annual battery capacity will grow from nearly 500 GWh in 2020 to nearly 5000 GWh in 2036, with over 50% of that capacity concentrated in China. As of 2024, China accounted for over 75% of global battery capacity, with major lithium-ion cell suppliers including CATL, BYD, Guoxuan High-Tech, LG Chem, Samsung SDI, and Panasonic.

 

Global lithium-ion battery capacity will exceed 2500 GWh by 2025, but Gigafactory construction faces multiple challenges. Each GWh of capacity requires an investment of $50 million to $100 million, and projects are generally subject to delays and cancellations. Slower growth in demand for electric vehicles and energy storage systems in North America and Europe is limiting funding for Gigafactory construction. Geopolitical tensions have further exacerbated project uncertainty. LG's Lansing, Michigan plant needs to find a new partner after its joint venture with General Motors ended, while Guoxuan High-Tech's Michigan plant is severely delayed due to local legal and political disputes.

 

Although the bankruptcy of North American Wot Corporation has delayed capacity deployment in Europe and the US, lithium-sulfur developer Lyten is acquiring its facilities in those regions. Global capacity is projected to nearly double over the next decade, with the US and European Gigafactories continuing to increase their share of global capacity.