“Pure battery EV’s sales are slowing down”. huh? You...

“Pure battery EV’s sales are slowing down”.

huh?

You conveniently left out the word “growth” after “sales”.


DYOR everyone!

The bottom line is that there continues to be STRONG and INCREASING demand for batteries, regardless of the BEV/PHEV fluctuations.


The growth in EV sales is pushing up demand for batteries, continuing the upward trend of recent years. Demand for EV batteries reached more than 750 GWh in 2023, up 40% relative to 2022, though the annual growth rate slowed slightly compared to in 2021‑2022. Electric cars account for 95% of this growth. Globally, 95% of the growth in battery demand related to EVs was a result of higher EV sales, while about 5% came from larger average battery size due to the increasing share of SUVs within electric car sales.

The United States and Europe experienced the fastest growth among major EV markets, reaching more than 40% year-on-year, closely followed by China at about 35%. Nevertheless, the United States remains the smallest market of the three, with around 100 GWh in 2023, compared to 185 GWh in Europe and 415 GWh in China. In the rest of the world, battery demand growth jumped to more than 70% in 2023 compared to 2022, as a result of increasing EV sales.

In China, PHEVs accounted for about one-third of total electric car sales in 2023 and 18% of battery demand, up from one-quarter of total sales in 2022 and 17% of sales in 2021. PHEV batteries are smaller than those used in BEVs, thereby contributing less to increasing battery demand. In recent years, Chinese carmakers have also been marketing more extended-range EVs (EREVs), which use an electric motor as their unique powertrain but have a combustion engine that can be used to recharge the battery when needed. EREVs typically have a battery size about twice that of a PHEV, enabling a real-world electric range of around 150 km compared to 65 km for traditional PHEVs. With an ICE on board, EREVs can reach ranges of around 1 000 km when needed. In 2023, EREVs accounted for 25% of PHEV sales in China, up from about 15% in 2021-2022. Negligible EREV sales are recorded in other regions.



Look beyond the tree that you’re banging your head against and see the forest growing.