What will China's battery energy storage system look like in 2030?

Battery energy storage systems (BESS) will have a CAGR of 30 percent, and the GWh required to power these applications in 2030 will be comparable to the GWh needed for all applications today. China could account for 45 percent of total Li-ion demand in 2025 and 40 percent in 2030—most battery-chain segments are already mature in that country.

How much does a battery cost in China?

Regionally, China had the lowest average battery pack prices at USD 94 per kWh, while costs in the US and Europe were 31% and 48% higher, respectively. Across end-uses, prices for battery electric vehicles (BEVs) fell below USD 100 per kWh for the first time, coming in at USD 97 per kWh.

Are Lithium prices set to tank in 2024?

Photo: Reuters. Lithium prices in China — the world’s largest producer of the key electric vehicle battery metal — are set to tank in 2024 with global miners poised to bump up supplies. Prices of lithium carbonate in China could fall by more than 30% from the current level next year, analysts say.

How much does lithium carbonate cost in China?

China produces about 70% of the world’s batteries and over half of its EVs. The spot price of lithium carbonate hit a more than two-year low of 115,500 yuan ($16,185.54) per metric ton this week. It is likely to drop to as low as 80,000 yuan next year as global supply continues to rise, four China-based analysts said.

How will China's Lithium prices affect the EV industry?

Prices outside China tend to follow a similar trend. Benchmark lithium carbonate prices to China, Japan and South Korea of $18.50 per kg on Thursday, down 77% from a peak of $81 per kg in November 2022. The price plunge will hit high-cost lithium producers, but offer some support to a slowing EV sector.

Will China's lithium supply surge lead to a global lithium surplus?

Lithium production in China will also jump 40% in the next two years, said UBS, driven by a major CATL project in southern Jiangxi province. The supply surge will result in a global lithium surplus of 12%, up from 4% this year, according to CITIC Futures.