Emerging Roles in Global Battery Production Chain for Poland and Hungary
In the ever-evolving landscape of the lithium-ion battery industry, Europe is making strides towards becoming a significant player. As of 2023, detailed rankings from BNEF for lithium-ion battery cell manufacturing capacity in Europe, specifically for Poland and Hungary, are not yet available. However, China continues to dominate the scene, expected to hold 67% of the global share by 2030, with an impressive capacity of almost 900 GWh.
The BNEF report highlights Poland and Hungary as countries starting to make their mark in the global lithium-ion battery supply chain. Poland's achievement is largely attributed to the LG Energy Solution's Wrocław gigafactory, the largest in Europe. In 2022, Poland secured the second position in the global ranking, contributing a 6% share. Hungary, too, is set to increase its battery manufacturing capability and is expected to move closer to Poland's position in the ranking. Together, Poland and Hungary account for 9% of the global share, making a significant impact on the ranking.
European countries, except Finland and the Czech Republic, have dropped in the ranking compared to the previous year. This drop, however, does not diminish the potential for a sustainable supply chain and ESG considerations that make the European battery cell manufacturing industry exciting. The demand for electric vehicles and energy storage continues to grow, making it crucial to ensure a responsible and sustainable supply chain.
The BNEF ranking is based on 45 metrics across five key themes, including availability and supply of raw materials, battery cell and component manufacturing, local demand for electric vehicles and energy storage, infrastructure, innovation and industry, as well as ESG considerations. European countries have an advantage in this industry due to their focus on sustainability and ESG initiatives.
Continued investment and development are necessary for European countries to keep pace with the rapidly growing global market. The report emphasizes the need for a focus on sustainability and ESG considerations in the lithium-ion battery industry. It also highlights the potential for further development in the region, with existing factories conducive to related investments.
As the world transitions towards a more sustainable and electric future, Europe's growing presence in the lithium-ion battery market is a promising step towards a greener and more responsible energy landscape. The race to secure a top spot in the global ranking continues, with China currently leading the pack, but Europe is certainly making its move.
