CEA report finds North America is fastest growing region for new lithium battery manufacturing


According to Clean Energy Associates’ latest “Energy Storage System Supplier Market Intelligence Program” report, by the end of 2022, North America had become the fastest-growing regional market for new lithium battery cell manufacturing plants. Much of this growth is attributable to stimulus provided by the US Inflation Reduction Act.

Europe saw delays and cancellations of several planned production facilities, mainly due to higher energy prices and more attractive political support from other regional markets, CEA said.

Clean Energy Associates’ Energy Storage System (ESS) Supplier Market Intelligence Program (SMIP) offers independent market intelligence twice a year on the world’s leading lithium-ion cell manufacturers and energy storage system integrators.

Market fragmentation is expected to increase as the expansion of the ESS market will enable the growth of Tier II/III suppliers that currently cannot provide scale especially for EV buyers.

Examples of the current project pipeline include:

  • American Battery Factory (ABF), founded by Lion Energy, will build a network of LFP battery factories in the United States, with the first factory in Tucson, Arizona. The company plans to build LFP battery cells for both EV and ESS applications.
  • California-based Amprius Technologies will build a 5 GWh plant (in phases) in Colorado. The first phase, with a capacity of 0.5 GW/h, will be presented by 2025.
  • Canadian battery maker Electrovaya will build an EV battery plant in Chautauqua County with a capacity of about 1 GWh.
  • Envision AESC plans to build its second EV battery plant in the United States in partnership with BMW. The plant will be built in South Carolina with an annual capacity of 30 GW/h.
  • In partnership with CATL, Ford will establish a 35 GWh LFP cell manufacturing facility in Michigan.
  • FREYR will develop its Giga America and Giga Arctic in parallel to receive US IRA incentives. The tax credits offered through the IRA will allow FREYR to obtain $37 million/GWh of capacity installed in the United States.

The executive summary of Clean Energy Associates’ new energy conservation report can be downloaded for free here.

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