GITNUXREPORT 2025

Supply Chain In The Battery Industry Statistics

Battery industry supply chain drives rapid EV growth, renewables, and recycling.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

The electric vehicle (EV) battery supply chain accounts for roughly 70% of the total cost of EVs

Statistic 2

The cost of raw materials for EV batteries has increased by over 30% in the past two years, impacting supply chain margins

Statistic 3

The global supply chain disruptions caused by the COVID-19 pandemic led to a 25% increase in battery cell prices in 2021

Statistic 4

The average cost of producing a lithium-ion battery pack has decreased by approximately 89% since 2010, from about $1,000 per kWh to around $137 per kWh in 2023

Statistic 5

The average logistics cost for transporting raw materials for battery manufacturing ranges from 10% to 15% of total supply chain costs

Statistic 6

The cost of cobalt in battery manufacturing has decreased by 25% in the last year due to market expansions and alternative chemistries

Statistic 7

The levelized cost of energy storage (LCOE) for grid-scale batteries has decreased by about 90% since 2010, making large-scale energy storage more economically viable

Statistic 8

The global battery market is projected to reach $138.9 billion by 2028, growing at a CAGR of 15.4%

Statistic 9

Lithium-ion batteries constitute approximately 75% of the global rechargeable battery market volume

Statistic 10

China is the largest producer of lithium-ion batteries, accounting for over 75% of global production capacity

Statistic 11

The demand for lithium is expected to grow 40-fold by 2040 to meet global EV and energy storage needs

Statistic 12

By 2030, global battery energy storage capacity is projected to reach 2,850 GW, doubling the current capacity

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The global EV battery recycling market is expected to grow from $1.4 billion in 2021 to over $32 billion by 2030, at a CAGR of 50%

Statistic 14

The production of electrode materials for batteries globally increased by 25% in 2022 to meet rising demand

Statistic 15

Approximately 60% of current battery manufacturing capacity is based in Asia, primarily China, South Korea, and Japan

Statistic 16

Nickel-rich cathodes, which improve battery energy density, are projected to comprise over 50% of battery cathodes by 2027

Statistic 17

The battery supply chain has seen a 600% increase in investment over the past five years, totaling over $150 billion globally

Statistic 18

The global demand for graphite for battery anodes is expected to grow at a CAGR of 37% from 2023 to 2030, driven by EV adoption

Statistic 19

The average annual growth rate of the global lithium carbonate market is estimated at 9.5% until 2030, driven by electric vehicle needs

Statistic 20

The percentage of cobalt used in batteries with ethical sourcing certifications has increased to 60%, aiming to reduce human rights concerns in the supply chain

Statistic 21

The global demand for EV batteries is projected to reach 4,300 GWh annually by 2030, a significant increase from 150 GWh in 2022

Statistic 22

The environmental impact of battery manufacturing is estimated to contribute approximately 10-15% of overall lifecycle greenhouse gas emissions for EVs

Statistic 23

The average time to establish a new battery manufacturing plant is approximately 3 to 4 years, given the complexity of supply chain and infrastructure development

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The global market for solid-state batteries is projected to reach $10 billion by 2030, accounting for a significant share of next-generation battery technologies

Statistic 25

The average price of lithium worldwide was about $54,000 per ton in 2023, up from $13,000 in 2020, reflecting soaring demand and supply constraints

Statistic 26

About 50% of global cobalt production is used specifically in battery manufacturing, highlighting its critical role

Statistic 27

The typical composition of a lithium-ion battery cathode includes approximately 60-70% nickel, 10-20% cobalt, and 10-20% manganese or other elements, depending on chemistry

Statistic 28

The transportation sector accounts for over 60% of the total demand for batteries globally, primarily driven by EV adoption

Statistic 29

The use of beyond-lithium chemistries like sodium-ion batteries is emerging, with a market share expected to reach 5% by 2030, offering cost and resource advantages

Statistic 30

The extraction of raw materials for batteries, such as lithium, cobalt, and nickel, has increased by over 300% in the past decade

Statistic 31

Over 70% of the world's cobalt production is mined as a byproduct of copper and nickel, predominantly in the Democratic Republic of Congo

Statistic 32

Around 80% of the global supply chain for EV batteries relies on China for raw materials, manufacturing, or component assembly

Statistic 33

The cobalt content in EV batteries has decreased by approximately 50% in recent years due to supply chain constraints and ethical concerns

Statistic 34

The carbon footprint of producing a lithium-ion battery ranges from 150-200 kg CO2 equivalent per kWh of capacity

Statistic 35

The supply chain for rare earth elements used in battery magnets and other components is highly concentrated, with China controlling about 60% of global rare earth processing capacity

Statistic 36

More than 60% of the world's lithium reserves are located in Chile, Australia, and Argentina, known as the Lithium Triangle

Statistic 37

Over 95% of the world's cobalt is produced as a byproduct of copper and nickel mining, mostly in the DRC, which has geopolitical risks

Statistic 38

The supply chain risk for critical battery minerals is rated as "high" by the U.S. Geological Survey, with supply vulnerabilities in supply-demand balance, geopolitical tensions, and processing capacity

Statistic 39

In 2023, the average lead time for securing battery raw materials has increased from 3 months to over 9 months due to supply chain disruptions

Statistic 40

The majority of lithium refining capacity is located in China, with over 70% of global production clustered there, posing supply vulnerability risks

Statistic 41

The average procurement lead time for critical battery raw materials in 2023 has increased by 50% compared to 2021, due to geopolitical factors and supply shortages

Statistic 42

Major automakers have committed to sourcing 100% of their battery materials from ethical sources by 2030, driving changes in supply chain policies

Statistic 43

Recycling of lithium-ion batteries could potentially supply 40% of the world's lithium demand by 2030, reducing dependency on mining

Statistic 44

The global recycling rate of lithium-ion batteries is currently less than 5%, but is expected to increase significantly with new regulations and advancements

Statistic 45

The use of recycled materials in battery production can reduce the need for mining by approximately 30-50%, lowering environmental impact

Statistic 46

The potential for battery materials recycling to supply up to 80% of future demand is being explored, with pilot projects emerging globally

Statistic 47

The share of recycled materials in new EV batteries is projected to reach 20% by 2030 as recycling technologies mature, reducing the need for raw material extraction

Statistic 48

The average lifespan of a lithium-ion battery used in electric vehicles is approximately 8-10 years

Statistic 49

The adoption of solid-state batteries is expected to increase the range of EVs by up to 50% and reduce charging times

Statistic 50

The energy density of lithium-ion batteries has increased by roughly 20% over the past five years, enabling longer-lasting batteries in EVs and energy storage systems

Statistic 51

The integration of AI in supply chain management has improved forecasting accuracy by up to 40%, reducing excess inventory and shortages

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Key Highlights

The global battery market is projected to reach $138.9 billion by 2028, growing at a CAGR of 15.4%
Lithium-ion batteries constitute approximately 75% of the global rechargeable battery market volume
China is the largest producer of lithium-ion batteries, accounting for over 75% of global production capacity
The electric vehicle (EV) battery supply chain accounts for roughly 70% of the total cost of EVs
The extraction of raw materials for batteries, such as lithium, cobalt, and nickel, has increased by over 300% in the past decade
The demand for lithium is expected to grow 40-fold by 2040 to meet global EV and energy storage needs
Over 70% of the world's cobalt production is mined as a byproduct of copper and nickel, predominantly in the Democratic Republic of Congo
Around 80% of the global supply chain for EV batteries relies on China for raw materials, manufacturing, or component assembly
Recycling of lithium-ion batteries could potentially supply 40% of the world's lithium demand by 2030, reducing dependency on mining
The average lifespan of a lithium-ion battery used in electric vehicles is approximately 8-10 years
The cobalt content in EV batteries has decreased by approximately 50% in recent years due to supply chain constraints and ethical concerns
The carbon footprint of producing a lithium-ion battery ranges from 150-200 kg CO2 equivalent per kWh of capacity
By 2030, global battery energy storage capacity is projected to reach 2,850 GW, doubling the current capacity

As the electric vehicle revolution accelerates, the intricate and geopolitically tense supply chain fueling the battery industry faces unprecedented challenges and opportunities, with projections revealing a booming market exceeding $138 billion by 2028 and innovations like recycling and solid-state batteries poised to reshape the landscape.

Cost Factors and Economic Impact

The electric vehicle (EV) battery supply chain accounts for roughly 70% of the total cost of EVs
The cost of raw materials for EV batteries has increased by over 30% in the past two years, impacting supply chain margins
The global supply chain disruptions caused by the COVID-19 pandemic led to a 25% increase in battery cell prices in 2021
The average cost of producing a lithium-ion battery pack has decreased by approximately 89% since 2010, from about $1,000 per kWh to around $137 per kWh in 2023
The average logistics cost for transporting raw materials for battery manufacturing ranges from 10% to 15% of total supply chain costs
The cost of cobalt in battery manufacturing has decreased by 25% in the last year due to market expansions and alternative chemistries
The levelized cost of energy storage (LCOE) for grid-scale batteries has decreased by about 90% since 2010, making large-scale energy storage more economically viable

Cost Factors and Economic Impact Interpretation

Despite a remarkable 89% drop in battery pack costs and a 90% reduction in energy storage expenses since 2010, surging raw material prices and supply chain disruptions—such as the 25% spike in cell prices—highlight that the EV battery supply chain remains a costly and complex balancing act, where innovations and market shifts are fighting to keep costs down amid persistent pressures.

Market Trends and Projections

The global battery market is projected to reach $138.9 billion by 2028, growing at a CAGR of 15.4%
Lithium-ion batteries constitute approximately 75% of the global rechargeable battery market volume
China is the largest producer of lithium-ion batteries, accounting for over 75% of global production capacity
The demand for lithium is expected to grow 40-fold by 2040 to meet global EV and energy storage needs
By 2030, global battery energy storage capacity is projected to reach 2,850 GW, doubling the current capacity
The global EV battery recycling market is expected to grow from $1.4 billion in 2021 to over $32 billion by 2030, at a CAGR of 50%
The production of electrode materials for batteries globally increased by 25% in 2022 to meet rising demand
Approximately 60% of current battery manufacturing capacity is based in Asia, primarily China, South Korea, and Japan
Nickel-rich cathodes, which improve battery energy density, are projected to comprise over 50% of battery cathodes by 2027
The battery supply chain has seen a 600% increase in investment over the past five years, totaling over $150 billion globally
The global demand for graphite for battery anodes is expected to grow at a CAGR of 37% from 2023 to 2030, driven by EV adoption
The average annual growth rate of the global lithium carbonate market is estimated at 9.5% until 2030, driven by electric vehicle needs
The percentage of cobalt used in batteries with ethical sourcing certifications has increased to 60%, aiming to reduce human rights concerns in the supply chain
The global demand for EV batteries is projected to reach 4,300 GWh annually by 2030, a significant increase from 150 GWh in 2022
The environmental impact of battery manufacturing is estimated to contribute approximately 10-15% of overall lifecycle greenhouse gas emissions for EVs
The average time to establish a new battery manufacturing plant is approximately 3 to 4 years, given the complexity of supply chain and infrastructure development
The global market for solid-state batteries is projected to reach $10 billion by 2030, accounting for a significant share of next-generation battery technologies
The average price of lithium worldwide was about $54,000 per ton in 2023, up from $13,000 in 2020, reflecting soaring demand and supply constraints
About 50% of global cobalt production is used specifically in battery manufacturing, highlighting its critical role
The typical composition of a lithium-ion battery cathode includes approximately 60-70% nickel, 10-20% cobalt, and 10-20% manganese or other elements, depending on chemistry
The transportation sector accounts for over 60% of the total demand for batteries globally, primarily driven by EV adoption
The use of beyond-lithium chemistries like sodium-ion batteries is emerging, with a market share expected to reach 5% by 2030, offering cost and resource advantages

Market Trends and Projections Interpretation

As the battery industry charges ahead with a projected market surpassing $138.9 billion by 2028 and a 600% surge in investments, China’s dominance and soaring lithium prices underscore a supply chain under pressure—yet amid growing environmental and ethical concerns, the race for advanced, sustainable, and secure energy storage remains as electrifying as the vehicles it powers.

Raw Material Extraction and Supply Chain Dynamics

The extraction of raw materials for batteries, such as lithium, cobalt, and nickel, has increased by over 300% in the past decade
Over 70% of the world's cobalt production is mined as a byproduct of copper and nickel, predominantly in the Democratic Republic of Congo
Around 80% of the global supply chain for EV batteries relies on China for raw materials, manufacturing, or component assembly
The cobalt content in EV batteries has decreased by approximately 50% in recent years due to supply chain constraints and ethical concerns
The carbon footprint of producing a lithium-ion battery ranges from 150-200 kg CO2 equivalent per kWh of capacity
The supply chain for rare earth elements used in battery magnets and other components is highly concentrated, with China controlling about 60% of global rare earth processing capacity
More than 60% of the world's lithium reserves are located in Chile, Australia, and Argentina, known as the Lithium Triangle
Over 95% of the world's cobalt is produced as a byproduct of copper and nickel mining, mostly in the DRC, which has geopolitical risks
The supply chain risk for critical battery minerals is rated as "high" by the U.S. Geological Survey, with supply vulnerabilities in supply-demand balance, geopolitical tensions, and processing capacity
In 2023, the average lead time for securing battery raw materials has increased from 3 months to over 9 months due to supply chain disruptions
The majority of lithium refining capacity is located in China, with over 70% of global production clustered there, posing supply vulnerability risks
The average procurement lead time for critical battery raw materials in 2023 has increased by 50% compared to 2021, due to geopolitical factors and supply shortages
Major automakers have committed to sourcing 100% of their battery materials from ethical sources by 2030, driving changes in supply chain policies

Raw Material Extraction and Supply Chain Dynamics Interpretation

As the battery industry accelerates toward a greener future, its reliance on a tightly tangled web of raw materials—where supply chain complexities, geopolitical risks, and ethical concerns have become as formidable as the energy these batteries are meant to energize—underscores the urgent need for a sustainable and transparent overhaul of the global supply framework.

Recycling and Sustainability Initiatives

Recycling of lithium-ion batteries could potentially supply 40% of the world's lithium demand by 2030, reducing dependency on mining
The global recycling rate of lithium-ion batteries is currently less than 5%, but is expected to increase significantly with new regulations and advancements
The use of recycled materials in battery production can reduce the need for mining by approximately 30-50%, lowering environmental impact
The potential for battery materials recycling to supply up to 80% of future demand is being explored, with pilot projects emerging globally
The share of recycled materials in new EV batteries is projected to reach 20% by 2030 as recycling technologies mature, reducing the need for raw material extraction

Recycling and Sustainability Initiatives Interpretation

As the battery industry races toward a greener horizon, the burgeoning potential of recycling—aimed at supplying up to 80% of future demand—reminds us that even in energy storage, second chances are becoming the primary source of supply, cutting dependency on mining while revitalizing our planet.

Technological Advancements and Innovations

The average lifespan of a lithium-ion battery used in electric vehicles is approximately 8-10 years
The adoption of solid-state batteries is expected to increase the range of EVs by up to 50% and reduce charging times
The energy density of lithium-ion batteries has increased by roughly 20% over the past five years, enabling longer-lasting batteries in EVs and energy storage systems
The integration of AI in supply chain management has improved forecasting accuracy by up to 40%, reducing excess inventory and shortages

Technological Advancements and Innovations Interpretation

As lithium-ion batteries inch towards longer life and higher energy density, and solid-state tech promises to extend EV ranges by half, the real charge comes from AI-driven supply chains that keep this energy flowing efficiently—but with batteries lasting only a decade, the industry’s dynamic balance between innovation and sustainability remains battery-powered.