Media Reports, page-3068

There is a sleeper source of demand which many are ignoring. Let me lay it out (you probably already know).

So Benchmark came out and said that about 934GWh of cells will go into EVs in 2023 (45% growth YOY according to Adamas Intelligence).



Now according to Benchmark 13% of this 934GWh is ESS (120GWh). The key part here is that this ESS fraction is growing much faster than EVs. According to Rhomotion, at over 150% YOY in 2023.



This is coupled to the massive photovoltaic growth globally which often needs some ESS solution alongside it. If both EV and ESS GWh deployed grew by the same amounts next year and in 2025, we would have the following.

2023 EV 934GWh ESS 120GWh 13%
2024 EV 1350GWh ESS 300GWh 22%
2025 EV 1950GWh ESS 750GWh 38%

Note the combined demand would go from 1050GWh in 2023 to 2600GWh in 2025 with ESS making up almost 40% of the demand. No doubt the numbers will end up different but what I think is being underestimated is the ESS demand in the coming years.