EV manufacturer Rivian voiced its concerns over the EV battery supply chain in a recent article, claiming that all the world’s current battery cell production amounts for under 10% of what will be required in 10 years to meet EV demand. SAR Insight predicts that annual global sales of BEVs and PHEVs passenger cars combined will grow to almost 100 million in 2031. This rapid transition to battery powered vehicles warrants concerns given that EV batteries contain several rare metals, and the scalability of production is not simple, owing in part to challenges with shipping of large format lithium-based batteries.
In total, more than $300 billion is expected to be invested in the EV supply chain global in the next five years. Vehicle OEMs have already started partnering with and investing heavily in battery manufacturers, securing regional capacity and investing in new/additional battery plants. It is however, still unknown exactly how long new battery facilities will take to bring online and if global capacity will meet the accelerating demand. SAR Insight’s upcoming Battery Demand & Capacity Service will quantify and forecast existing battery factory capacity and output against forecast EV demand, identifying key relationships and challenges along the supply chain.