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Lithium-Ion Battery Market Faces Oversupply, But Growth and Innovation Accelerate
Jan 23, 2025
Lithium-ion battery production exceeded 11 billion units in 2024, creating oversupply and driving down costs. However, S&P Global predicts market balance will return as stationary energy storage and EV adoption surge. The rise of lithium iron phosphate (LFP) batteries, particularly for stationary storage, is reshaping the market with increased energy density and lower costs.
Utility-scale battery capacities have doubled, reaching 6–8 MWh in standard formats. Despite challenges, scale-driven cost reductions and innovation continue to enhance energy storage competitiveness and prepare the market for long-term growth.