8% Decline in Electric Vehicle Battery Demand Forecast for 2025–2035
Recent reports indicate that the global demand forecast for electric vehicle (EV) batteries over the 2025 to 2035 period has been revised downward by 8% compared to previous estimates. This reduction, equivalent to 3.4 terawatt-hours of battery capacity, is primarily attributed to a decline in passenger EV sales in the United States. These shifts have led to excess battery production capacity and downward pressure on prices in the global market.
In 2024, global demand for EV batteries reached nearly 1 terawatt-hour, reflecting significant industry growth. However, projections suggest a decline in demand starting in 2025. Such fluctuations are expected to have considerable implications for the EV battery market.
In response to these challenges, battery manufacturers are exploring strategies to adapt to market changes and maintain sustainability. These measures include optimizing manufacturing processes, reducing costs, and advancing innovative battery technologies.
Additionally, some producers are reevaluating their production plans to prevent overcapacity amid weakening demand. These efforts aim to help stabilize the market and avoid excessive price drops.
Overall, while the EV battery market is anticipated to face challenges in the coming years, appropriate strategic responses and continued investment in next-generation technologies provide a hopeful outlook for sustainable growth and development in the industry.
