"2035 Small Battery Demand Projected at 1.3 TWh"

SNE Research Outlook

Source=SNE Research

The demand for small lithium-ion batteries (LIB) in 2035 is expected to reach 1.3 TWh (terawatt-hours, 1000 GWh). The largest share of this demand will come from electric vehicles, accounting for about 1 TWh.

According to the '2024 Global LIB Application Mid-to-Long Term Outlook' report by secondary battery market research firm SNE Research on the 20th, the total demand for small lithium-ion secondary batteries (LIB) in 2035 was estimated at 1326.5 GWh. This estimate includes electric vehicles equipped with small batteries and energy storage systems (ESS).

Lithium-ion batteries can be classified into small, medium, and large based on size and capacity. Automotive batteries are classified as medium, ESS batteries as large, and the remaining batteries are generally classified as small. Small batteries typically refer to compact battery cells that can fit in one hand. Recently, standardized cylindrical batteries have also been used for electric vehicle batteries, diversifying their applications.

When comparing market size by application, electric vehicle batteries accounted for 82.5% of the demand share. Products using cylindrical cells are being introduced for electric vehicles. A representative example is Tesla's products. Panasonic and LG Energy Solution are supplying small batteries for electric vehicles to Tesla.

The next largest battery demand after electric vehicles is from E-mobility. The battery demand in the E-mobility sector, including electric bicycles and 2-3 wheelers, is expected to reach about 80 GWh in 2035, accounting for 6% of the share.

ESS is expected to require 39 GWh of small LIB demand in 2035, ranking third with a 2.9% share. ESS products equipped with cylindrical cells, similar to electric vehicles, are also being released. Models equipped with small pouch cells are expected to appear in the future.

An SNE Research official stated, "The LIB market for existing IT devices such as smartphones and laptops is expected to grow relatively slowly," adding, "High growth in the 2-3 wheel market and wearable market, as well as the emergence of new applications such as drones, are expected to drive new growth in the small LIB market."