Is there an oversupply of lithium battery energy storage

Will lithium-ion batteries outstrip demand?

Demand is growing for lithium-ion batteries to serve electric vehicles and stationary energy storage systems. However, thanks to aggressive manufacturing expansion in recent years, the global battery supply is expected to outstrip this demand for some years to come.

When will lithium ion batteries be used in energy storage?

In 2024, global demand for lithium-ion batteries in energy storage is expected to reach 256.41 GWh, and this will rise to 355.22 GWh in 2025 and 463.23 GWh in 2026. Lithium carbonate inventories began to climb at the end of 2023.

Why is the lithium market oversupplied?

The lithium market has been oversupplied for several years, in part due to expectations of huge increases in demand for lithium driven by the energy transition.

Will lithium demand increase tenfold by 2050?

Lithium demand has tripled since 2017 and is set to grow tenfold by 2050 under the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario. An increased supply of lithium will be needed to meet future expected demand growth for lithium-ion batteries for transportation and energy storage.

Will the lithium market recover by 2025?

In summary, despite challenges such as oversupply and price pressures, the lithium market is poised for recovery by 2025, driven by supply adjustments, the gradual exit of unprofitable producers, and increasing demand from electric vehicles and energy storage systems.

Is the lithium-ion battery market in flux?

With ongoing oversupply issues, the battery market is in flux. As lithium-ion production continues to grow around the world, can demand keep up? Demand is growing for lithium-ion batteries to serve electric vehicles and stationary energy storage systems.