Powering the Green Transition

The transition to electric vehicles (EVs) has triggered an unprecedented surge in demand for lithium-ion battery cells. In the global automotive sector, battery manufacturing is characterized by significant barriers to entry, including massive capital requirements for gigafactories, highly specialized chemical engineering expertise, and secured supply chains for critical minerals like lithium, cobalt, and nickel.

These high entry barriers have led to a highly concentrated market structure dominated by a small number of East Asian conglomerates. While localized start-ups and European consortia are attempting to establish domestic supply chains, the vast majority of battery cells are currently produced by established market leaders who benefit from substantial economies of scale.

Fig. 1 – Global EV battery cell manufacturer market share, 2023 (%)

Refer to Fig. 1.