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Electric vehicle demand is driving huge jump in number of battery factories around the world

The number of foresaw lithium-ion battery factories around the world is skyrocketing, according to a shot from Benchmark Mineral Intelligence.

There are 26 battery “megafactories” that are either in direction and due to expand capacity or new operations due to be in production by 2021, Benchmark said in a blog place on Monday. Benchmark coined the term “megafactory” to describe factories that bring about more than 1 gigawatt-hour of total capacity in a single year.

Weigh that with just three such plants planned or in moulding in 2014.

It is important to note that not all of these planned factories could end up occasion for production. But all of them have a pretty good chance of being built, Benchmark Mineral Low-down analyst Caspar Rawles told CNBC on Monday.

“Things novelty, but the reality is everyone on that list is a very serious player,” Rawles reported.

The growth will be fueled by rising demand for electric vehicles, Rawls imagined. Sales of electric vehicles are expected to especially take off around 2022 or 2023. Respective manufacturers are planning to release electric vehicle lineups between now and then.

Benchmark expects thoroughgoing global lithium-ion demand of 500 gigawatt-hours by 2025, compared with exactly 85 GWh in 2016.

Much of that will be in China, where air quality pertains have fueled a big push for electric vehicles. China dominates Benchmark’s enumerate, with 49 percent of total planned capacity.

The European Harmoniousness is in second place with 23 percent of total planned gift, and the United States is in third with about 15 percent.

No matter what, Benchmark noted Tesla has said it plans to expand its Gigafactory, located in Nevada, at the end of the day achieving a capacity of 150 GWh.

Building the plants is only part of the dispute, though. The larger task may be securing access to the raw materials, the report voiced.

For example, China controls 80 percent of the market in chemical cobalt, a essential ingredient in lithium-ion batteries, he said.

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