Worldwide energy sector battery consumption surpassed the 1 Terawatt-hour mark in the year 2024, as reported by the International Energy Agency.
Global EV Battery Demand Trends: A Comprehensive Overview
The electric vehicle (EV) revolution is gathering momentum, and the demand for EV batteries is on an upward trajectory. Here's a breakdown of the key trends shaping the global EV battery market.
In 2024, the demand for electric trucks nearly doubled, accounting for about 3% of the total global EV battery demand. This growth was primarily driven by China, the primary driver of growth in electric truck battery demand that year. Interestingly, demand in emerging markets and developing economies other than China also doubled, reaching nearly 5% of the global EV battery demand.
The IEA predicts that global battery demand for the energy sector hit the 1 TWh milestone in 2024. Despite this, the share of global battery demand in the United States is projected to decline from about 13% in 2024 to less than 10% by 2030.
China, the single largest source of global battery demand, is expected to see a decline in its share from 60% in 2024 to just under 50% by 2030. On the other hand, emerging markets and developing economies other than China are expected to double their share of EV battery demand from nearly 5% in 2024 to 10% in 2030.
Electric cars continue to dominate the EV market, accounting for over 85% of global EV battery demand. However, the share of global EV battery demand from electric cars is projected to decrease over the same period. In contrast, the contribution of electric trucks to EV battery demand is expected to triple by 2030, reaching over 8% of the total.
The demand for EV batteries grew to over 950 GWh in 2024, representing a 25% increase from 2023. This growth was not limited to any region, as both Europe and the United States saw significant increases. Demand for electric trucks in Europe increased by about 25%, accounting for about 10% of the global total, while EV battery demand in the United States nearly matched that of the European Union in 2024, in part due to its larger battery size per EV.
According to the IEA's 2030 forecast, China, the United States, and the European Union are expected to have the largest increases in shares of global battery demand for the energy sectors. The STEPS predicts that EV battery demand will reach more than 3 TWh in 2030. As the world moves towards a more sustainable future, the demand for EV batteries is set to soar, driving innovation and growth in this critical sector.
