CICC expects global power battery demand to grow at CAGR of over 50% in next five years
The rapid growth of the electric vehicle market means an explosion in demand for power batteries.
As the capacity of power batteries equipped in vehicles increases, global power battery demand will continue to grow faster than new energy vehicle demand, said CICC, a top Chinese investment bank, in a research note released Thursday.
By 2025, global installed power battery capacity is expected to exceed 1,430 GWh, with a compound annual growth rate (CAGR) of more than 50 percent, the team said.
The installed power battery capacity in China will reach 428 GWh by then, with the rest of the market totaling 1,052 GWh, CICC said.
The CAGR of installed power lithium batteries in China is expected to be 38 percent from 2021 to 2025, and the CAGR of installed power lithium batteries in the rest of the market is expected to be 64 percent, according to CICC.
This will drive continued high growth in new demand for lithium battery equipment, and double-digit growth is expected to continue until at least 2025, CICC said.
The global lithium battery equipment market is expected to reach RMB119.8 billion ($18.5 billion) in 2023 and RMB143.1 billion in 2025, with combined market size of more than RMB500 billion from 2021 to 2025, according to the CICC.
China's power battery installation volume from January to June was 52.5GWh, up 200.3 percent year-over-year, according to data previously released by China Automotive Battery Innovation Alliance.
The installed base of ternary lithium batteries was 30.2GWh, accounting for 57.5 percent of the total installed base, up 139.0 percent year-over-year. Lithium iron phosphate batteries accounted for 22.2GWh, or 42.3 percent of the total installed base, up 368.5 percent year-over-year.