The battery industry revenues may exceed $168 billion by 2030 but severe global shortages are highly likely from 2025, a new report said on Monday.
The battery industry is set to be one of the most significant over the next 10 years. A compound annual growth rate (CAGR) of 14 per cent is expected by 2030, mostly driven by sales from lithium-ion batteries.
However, according to data and analytics company GlobalData, extraction of raw materials will not meet soaring demand unless capital markets change course in the face of environmental, social and governance (ESG) pressures and invest heavily in new mines.
"Governments must play a greater role in incentivising mining, refining, and battery cell production," said Daniel Clarke, analyst in the thematic intelligence team.
The reasons for this are two-fold. Firstly, an emerging challenge for the next decade will be whether extraction of natural resources and raw materials such as lithium, nickel, cobalt and graphite can meet the soaring demand for batteries.
"More gigafactories may be announced, but where will all the raw materials come from? Despite being finite, these materials are not rare, and greater invest