Battery Megafactory Forecast
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
When ground broke on the massive Tesla Gigafactory in Nevada in 2014, the world marveled at the project’s audacity, size, and scope.
At the time, it was touted that the cutting-edge facility would be the largest building in the world by footprint, and that the Gigafactory would single-handedly be capable of doubling the world’s lithium-ion battery production capacity.
What many did not realize, however, is that although as ambitious and as forward-looking as the project sounded, the Gigafactory was just the start of a trend towards scale in the battery making space. While Tesla’s facility was the most publicized, it would ultimately be one of many massive factories in the global pipeline.
Today’s data comes to us from Benchmark Mineral Intelligence, and it forecasts that we will see a 399% increase in lithium-ion battery production capacity over the next decade – enough to pass the impressive 1 TWh milestone.
Here is a more detailed projection of how things will shape up in the coming decade:
|Region||Capacity (GWh, 2018)||Capacity (GWh, 2023)||Capacity (GWh, 2028)|
|Asia (excl China)||45.5||78.5||111.5|
In just a decade, lithium-ion battery megafactories around the world will have a combined production capacity equivalent to 22 Tesla Gigafactories!
The majority of this capacity will be located in China, which is projected to have 57% of the global total.
The Top Plants Globally
According to Benchmark, the top 10 megafactories will be combining for 299 GWh of capacity in 2023, which will be equal to almost half of the global production total.
Here are the top 10 plants, sorted by projected capacity:
|Rank||Megafactory||Owner||Country||Forecasted capacity by 2023 (GWh)|
|#1||CATL||Contemporary Amperex Technology Co Ltd||China||50|
|#2||Tesla Gigafactory 1||Tesla Inc / Panasonic Corp (25%)||US||50|
|#3||Nanjing LG Chem New Energy Battery Co., Ltd.||LG Chem||China||35|
|#4||Nanjing LG Chem New Energy Battery Co., Ltd. Plant 2||LG Chem||China||28|
|#5||Samsung SDI Xian||Samsung SDI||China||25|
|#6||Funeng Technology||Funeng Technology (Ganzhou)||China||25|
|#7||BYD , Qinghai||BYD Co Ltd||China||24|
|#8||LG Chem Wroclaw Energy Sp. z o.o.||LG Chem||Poland||22|
|#9||Samsung SDI Korea||Samsung SDI||Korea||20|
|#10||Lishen||TianJin Lishen Battery Joint-Stock CO.,LTD||China||20|
Of the top 10 megafactory plants in 2023, the majority will be located in China – meanwhile, the U.S. (Tesla Gigafactory), South Korea (Samsung), and Poland (LG Chem) will be home to the rest.
Reaching economies of scale in lithium-ion battery production will be a significant step in decreasing the overall cost of electric vehicles, which are expected to surpass traditional vehicles in market share by 2038.
Visualizing the Scale of Global Fossil Fuel Production
How much oil, coal, and natural gas do we extract each year? See the scale of annual fossil fuel production in perspective.
The Scale of Global Fossil Fuel Production
Fossil fuels have been our predominant source of energy for over a century, and the world still extracts and consumes a colossal amount of coal, oil, and gas every year.
This infographic visualizes the volume of global fossil fuel production in 2021 using data from BP’s Statistical Review of World Energy.
The Facts on Fossil Fuels
In 2021, the world produced around 8 billion tonnes of coal, 4 billion tonnes of oil, and over 4 trillion cubic meters of natural gas.
Most of the coal is used to generate electricity for our homes and offices and has a key role in steel production. Similarly, natural gas is a large source of electricity and heat for industries and buildings. Oil is primarily used by the transportation sector, in addition to petrochemical manufacturing, heating, and other end uses.
Here’s a full breakdown of coal, oil, and gas production by country in 2021.
If all the coal produced in 2021 were arranged in a cube, it would measure 2,141 meters (2.1km) on each side—more than 2.5 times the height of the world’s tallest building.
China produced 50% or more than four billion tonnes of the world’s coal in 2021. It’s also the largest consumer of coal, accounting for 54% of coal consumption in 2021.
|Rank||Country||2021 Coal Production|
|% of Total|
|#7||🇿🇦 South Africa||234.5||3%|
India is both the second largest producer and consumer of coal. Meanwhile, Indonesia is the world’s largest coal exporter, followed by Australia.
In the West, U.S. coal production was down 47% as compared to 2011 levels, and the descent is likely to continue with the clean energy transition.
In 2021, the United States, Russia, and Saudi Arabia were the three largest crude oil producers, respectively.
|Rank||Country||2021 Oil Production |
|% of Total|
|#3||🇸🇦 Saudi Arabia||515.0||12%|
OPEC countries, including Saudi Arabia, made up the largest share of production at 35% or 1.5 billion tonnes of oil.
U.S. oil production has seen significant growth since 2010. In 2021, the U.S. extracted 711 million tonnes of oil, more than double the 333 million tonnes produced in 2010.
Natural Gas Production
The world produced 4,036 billion cubic meters of natural gas in 2021. The above graphic converts that into an equivalent of seven billion cubic meters of liquefied natural gas (LNG) to visualize it on the same scale as oil and gas.
Here are the top 10 producers of natural gas in 2021:
|Rank||Country||2021 Natural Gas Production |
|% of Total|
|#8||🇸🇦 Saudi Arabia||117.3||3%|
The U.S. was the largest producer, with Texas and Pennsylvania accounting for 47% of its gas production. The U.S. electric power and industrial sectors account for around one-third of domestic natural gas consumption.
Russia, the next-largest producer, was the biggest exporter of gas in 2021. It exported an estimated 210 billion cubic meters of natural gas via pipelines to Europe and China. Around 80% of Russian natural gas comes from operations in the Arctic region.
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