Battery Trends: Overcapacity, Falling Costs and The Impact on EV and Energy Storage Markets

Lithium-ion battery prices have dropped drastically over the past year, especially in China, given significant cell manufacturing overcapacity, economies of scale, low metal prices and slower-than-expected electric vehicle (EV) demand. Low prices should provide some upside for EV and energy storage demand, but not to the extent that it solves the growing overcapacity in the sector. US tax credits in the Inflation Reduction Act and with tariffs on lithium-ion batteries are also shaping supply chains within the US. BloombergNEF will present its view on current supply chain dynamics shaping battery markets and impact on EV and energy storage outlooks.