U.S.A Ramped Up Investment in Battery Production to Cope Up with The Rising Demand from EV Sector
- 11-Jan-2022 2:45 PM
- Journalist: Peter Schmidt
The energy transition towards a greener economy besides reducing the dependence on fossil fuels is driving the next commodity supercycle, with immense prospects for the conglomerates and market players in the energy sector. The Bloomberg New Energy Finance estimated that the global transition towards a greener economy will require an investment of USD 173 trillion in energy supply and infrastructure investment in the upcoming next three decades. Whereas it estimations projected that by 2050 the renewable energy was expected to provide 85% of our energy requirements.
The transition from internal combustion vehicles (ICV’s) to electric vehicles (EV’s) has become a focal point of the global electrification drive. Since 2020 the EV’s sales witnessed a persistent increment in terms of sales and several analysts predicted that the sales were likely to witness enormous growth in 2022. In response to curb carbon emission, various players ramped up battery production. According to the US Department of Energy, 13 new gigafactories are anticipated to come online in the US by 2025. Whereas, according to the EIA operating utility-scale battery storage power capacity in the US more than quadrupled from 214 MW to 899 MW in 2019. The EIA projected that the utility-scale battery storage power could exceed 2500 MW by 2023, or a 180% increment while assuming no current operating capacities will shut down.
As per ChemAnalyst, due to the pace of transition from the ICV’s to EV’s the demand for Lithium reserves from the Battery manufacturers is likely to be bolstered along with an estimation to reach historical peaks for a sustained period in a net-zero emission scenario. Whereas, the recent announcement of Tesla to shift production of all its model on Lithium-Iron-Phosphate (LFP) batteries has shifted the market dynamics for Phosphoric Acid and it is anticipated that the offers for Phosphoric Acid will persistently soar in 2022.