The potential of the battery sector in the CEE Region
E-mobility is the most significant trend shaping the global transportation sector today. According to the International Energy Agency (IEA), sales of electric vehicles doubled in 2021 compared to the previous year, reaching a record-breaking 6.6 million. This marks a dramatic shift from the approximately 55,000 electric cars sold worldwide back in 2011. In 2021, electric cars accounted for almost 10% of global car sales. Moreover, sales of electric vehicles continued to surge in 2022, with 2 million sold in the first quarter alone, representing a 75% increase from the same period in 2021, projected to exceed 7 million vehicles by the end of the year.
Increased demand for zero- and low-emission vehicles is also recorded in Europe – in 2022, the BEV and PHEV share reached the level of 22.8% – representing 2,588,906 cars sold – and was almost on par with the market share of hybrids (HEVs) that cannot be charged from an external source of energy (23.4%).
The growing demand for electric vehicles contributes to a significant increase in the demand for a key component of this type of vehicle – lithium-ion batteries. According to the BNEF forecasts global lithium-ion battery production capacity is projected to increase eightfold by 2027 reaching 8,945 Gigawatt-hours (GWh).
According to the BNEF ranking for 2022, Poland, Hungary, the Czech Republic, and Slovakia are among the top 30 countries leading the lithium-ion battery supply chain and actively contributing to building the global value chain of the battery sector. Overall, European countries have accounted for 14% of the global battery manufacturing capacity in 2022. While China continues to dominate the market, its share is projected to decrease from 77% in 2022 to 69% in 2027. Europe is expected to host six of the top 10 countries for battery production by 2027, with Poland and Hungary projected to increase their capacity and maintain their high
rankings, ranking 6th and 4th, respectively. Hungary, in particular, will benefit from a planned 100 GWh investment from CATL. Other countries in the CEE region, such as Serbia with 16 GWh in Subotica, and Slovakia with 10 GWh, are also poised to become significant players in the global battery value chain.
Find more in The potential of the battery sector in CEE region_EN report