Energy
The Lithium-Ion Battery Megafactories Are Coming [Chart]
![The Lithium-Ion Battery Megafactories Are Coming [Chart]](https://www.visualcapitalist.com/wp-content/uploads/2015/05/li-ion-batteries-2020.png)
The Lithium-Ion Battery Megafactories Are Coming [Chart]
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
Everyone has heard about Tesla’s $5 Billion Gigafactory and its potential to double lithium-ion battery production capacity. However, it turns out that this merely a cog in the wheel of a bigger trend. Data from Simon Moores of Benchmark Mineral Intelligence shows that there are several other large-scale facilities coming online in the next five years that will potentially bring that number substantially higher.
Today’s production capacity is approximately 35 GWh worldwide. However, once Tesla’s Gigafactory and the other facilities being built by LG Chem, Foxconn, BYD, and Boston Power are complete, we will have a total capacity in 2020 of around 122 GWh. This exponential ramping up of production capabilities proves that companies are serious about scale and reducing costs.
For investors and speculators in the lithium, graphite, and cobalt sectors, there is no doubt that this could be a big boon. While these megafactories will have more negotiating power in their contracts for industrial metal sourcing, they will not be able to create this supply out of thin air.
These companies will need a diverse array of sources for industrial metals to reduce any supply risks. The sources also need to be socially responsible, ethical, and professionally managed. Tesla has already stated that they are unwilling to source from places like the Democratic Republic of the Congo, where over half of cobalt supply originates. This creates an interesting dynamic and playing field for the mining companies in this space, and it will be worth watching as battery production ramps up in the coming years.
Maps
Mapped: Renewable Energy and Battery Installations in the U.S. in 2023
This graphic describes new U.S. renewable energy installations by state along with nameplate capacity, planned to come online in 2023.
Renewable and Battery Installations in the U.S. in 2023
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Renewable energy, in particular solar power, is set to shine in 2023. This year, the U.S. plans to get over 80% of its new energy installations from sources like battery, solar, and wind.
The above map uses data from EIA to highlight planned U.S. renewable energy and battery storage installations by state for 2023.
Texas and California Leading in Renewable Energy
Nearly every state in the U.S. has plans to produce new clean energy in 2023, but it’s not a surprise to see the two most populous states in the lead of the pack.
Even though the majority of its power comes from natural gas, Texas currently leads the U.S. in planned renewable energy installations. The state also has plans to power nearly 900,000 homes using new wind energy.
California is second, which could be partially attributable to the passing of Title 24, an energy code that makes it compulsory for new buildings to have the equipment necessary to allow the easy installation of solar panels, battery storage, and EV charging.
New solar power in the U.S. isn’t just coming from places like Texas and California. In 2023, Ohio will add 1,917 MW of new nameplate solar capacity, with Nevada and Colorado not far behind.
| Top 10 States | Battery (MW) | Solar (MW) | Wind (MW) | Total (MW) |
|---|---|---|---|---|
| Texas | 1,981 | 6,462 | 1,941 | 10,385 |
| California | 4,555 | 4,293 | 123 | 8,970 |
| Nevada | 678 | 1,596 | 0 | 2,274 |
| Ohio | 12 | 1,917 | 5 | 1,934 |
| Colorado | 230 | 1,187 | 200 | 1,617 |
| New York | 58 | 509 | 559 | 1,125 |
| Wisconsin | 4 | 939 | 92 | 1,034 |
| Florida | 3 | 978 | 0 | 980 |
| Kansas | 0 | 0 | 843 | 843 |
| Illinois | 0 | 363 | 477 | 840 |
The state of New York is also looking to become one of the nation’s leading renewable energy providers. The New York State Energy Research & Development Authority (NYSERDA) is making real strides towards this objective with 11% of the nation’s new wind power projects expected to come online in 2023.
According to the data, New Hampshire is the only state in the U.S. that has no new utility-scale renewable energy installations planned for 2023. However, the state does have plans for a massive hydroelectric plant that should come online in 2024.
Decarbonizing Energy
Renewable energy is considered essential to reduce global warming and CO2 emissions.
In line with the efforts by each state to build new renewable installations, the Biden administration has set a goal of achieving a carbon pollution-free power sector by 2035 and a net zero emissions economy by no later than 2050.
The EIA forecasts the share of U.S. electricity generation from renewable sources rising from 22% in 2022 to 23% in 2023 and to 26% in 2024.
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