China still dominates Li‑ion output
- The International Energy Agency said China held about 85% of global lithium-ion cell manufacturing capacity in 2024, extending its lead in batteries as electric-vehicle demand topped 1 terawatt-hour. - The agency said battery cell prices in China run more than 30% below Europe and more than 20% below the United States, helped by scale, automation and cheaper materials. - Governments are betting on recycling, mineral processing and new factories to cut concentration risk as demand rises through 2030. (iea.org)
China still controls most of the world’s lithium-ion battery factory capacity, with about 85% of global cell manufacturing capacity in 2024, according to the International Energy Agency. (iea.org) Lithium-ion cells are the rechargeable units inside electric-vehicle packs and grid-storage systems. Global battery demand for the energy sector hit 1 terawatt-hour in 2024, with electric cars still the main driver. (iea.org) China’s edge is not just assembly. The International Energy Agency said Chinese producers span mining, refining, battery materials, equipment, cells and electric vehicles, giving them a tightly linked domestic supply chain. (iea.org) That integration shows up in price. The agency said battery cell prices are, on average, more than 30% lower in China than in Europe and more than 20% lower than in the United States. (iea.org) About half of that manufacturing cost gap comes from efficiency and automation, while roughly 30% comes from access to lower-cost critical minerals and battery components, the International Energy Agency said. (iea.org) Chemistry also matters. Chinese manufacturers pushed lithium iron phosphate, or LFP, a cheaper battery type that avoids nickel and cobalt and now accounts for a large share of electric-vehicle and storage batteries. (iea.org 1) (iea.org 2) The concentration reaches beyond cells. China undertakes well over half of global raw-material processing for lithium and cobalt, and it leads refining across most strategic minerals tracked by the International Energy Agency. (iea.org 1) (iea.org 2) Governments in the United States, Europe and elsewhere are trying to build backup capacity through new plants, domestic processing and recycling. The International Energy Agency said recycling creates a secondary supply source that can reduce reliance on new mines and imported materials. (iea.org 1) (iea.org 2) The challenge is timing. The International Energy Agency expects battery demand to keep rising sharply through 2030, which means new supply chains will need to expand while China remains the industry’s lowest-cost producer. (iea.org) (iea.org)
