This surge in demand presents both significant opportunities and challenges for the battery manufacturing industry.

The report highlights that electric vehicles will be the primary driver of this increased demand, as automakers around the world ramp up production to meet the growing consumer appetite for cleaner, more sustainable transportation options. By 2030, EVs are projected to account for more than half of all new vehicle sales globally, necessitating a substantial increase in battery production capacity.

In addition to EVs, the expansion of renewable energy infrastructure, particularly solar and wind power, is also contributing to the rising demand for batteries. As these energy sources are intermittent, batteries are essential for storing energy and ensuring a stable supply when the sun isn’t shining or the wind isn’t blowing. The development of large-scale battery storage systems is therefore crucial for the continued growth of the renewable energy sector.

However, the report also points out several challenges that need to be addressed to meet this burgeoning demand. These include securing a stable supply of raw materials, such as lithium, cobalt, and nickel, which are essential for battery production. The industry must also focus on improving battery recycling processes to reduce the environmental impact of battery disposal and mitigate potential supply chain disruptions.

Bain & Company’s report underscores the critical role that batteries will play in the global transition to a more sustainable future. As demand continues to rise, innovation in battery technology, production, and recycling will be key to supporting the widespread adoption of electric vehicles and renewable energy systems.