The 2040 outlook for EV battery manufacturing | McKinsey

The 2040 outlook for EV battery manufacturing | McKinsey



...Currently, the EV-battery market is dominated by players from only three countries, all of them in Asia: China, Japan, and Korea. In 2018, less than 3 percent of the total global demand for EV batteries was supplied by companies outside these three countries, and only approximately 1 percent was supplied by European companies.



...Of the 70 announced gigafactories globally, 46 are based in China. Unlike China, Europe does not have a coherent industrial strategy to attract large-scale battery manufacturing. The resulting challenges for this incumbent industry and problems with planned investment have even led some of Europe’s homegrown battery manufacturers to set up shop elsewhere—namely, China. Netherlands-based Lithium Werks, which already has two plants in China, announced plans in September for another. The company says it prefers to build plants in China because the infrastructure is better, and it is easier to get the permits needed to build a factory.



... Certain European premium OEMs, for example, have so far ruled out further investments into cell production and focus only on R&D and packaging. Nissan currently has a plant in Sunderland, United Kingdom, but is seeking to divest. Volkswagen just announced it is investing €1 billion in a battery cell factory that it is developing in partnership with SK Innovation in Germany, while it also has major supply deals with LG Chem, Samsung, and Chinese battery maker CATL.