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Battery Megafactory Forecast: 400% Increase in Capacity to 1 TWh by 2028

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Battery Megafactory Forecast: 400% Increase in Capacity to 1 TWh by 2028

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.

Mastering Scale

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:

RegionCapacity (GWh, 2018)Capacity (GWh, 2023)Capacity (GWh, 2028)
China134.5405631
Europe19.693.5207
North America20.981148
Other005
Asia (excl China)45.578.5111.5
Grand Total220.56581,102.5

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:

RankMegafactoryOwnerCountryForecasted capacity by 2023 (GWh)
#1CATLContemporary Amperex Technology Co LtdChina50
#2Tesla Gigafactory 1Tesla Inc / Panasonic Corp (25%)US50
#3Nanjing LG Chem New Energy Battery Co., Ltd.LG ChemChina35
#4Nanjing LG Chem New Energy Battery Co., Ltd. Plant 2LG ChemChina28
#5Samsung SDI XianSamsung SDIChina25
#6Funeng TechnologyFuneng Technology (Ganzhou)China25
#7BYD , QinghaiBYD Co LtdChina24
#8LG Chem Wroclaw Energy Sp. z o.o.LG ChemPoland22
#9Samsung SDI KoreaSamsung SDIKorea20
#10LishenTianJin Lishen Battery Joint-Stock CO.,LTDChina20

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.

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Energy Shift

Visualizing Global Energy Production in 2023

Fossil fuels accounted for 81% of the energy mix.

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Pie chart showing energy production by source in 2023.

Visualizing Global Energy Production in 2023

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Global primary energy consumption reached a new record of 620 exajoules (EJ) for the second consecutive year in 2023, up from 607 exajoules in 2022.

This graphic shows the sources of energy used globally in 2023, measured in exajoules. Data is from the 2024 Statistical Review of World Energy by the Energy Institute, released in June 2024.

Fossil Fuels Accounted for 81% of the Energy Mix

Despite efforts to decarbonize the economy, fossil fuels still accounted for over 80% of the global energy mix in 2023.

Oil was responsible for 32% of the energy consumed around the world, followed by coal (26%) and then natural gas (23%).

Energy SourceConsumption in exajoulePercentage (%)Fossil Fuel
Oil19632%Yes
Coal16426%Yes
Natural Gas14423%Yes
Hydro-electric406%No
Nuclear Energy254%No
Other Renewables518%No
Total620100%

The Asia-Pacific region was responsible for nearly 80% of global coal output, with significant contributions from Australia, China, India, and Indonesia.

Global coal consumption also continued to rise, exceeding 164 EJ for the first time ever.

China remains the largest consumer of coal, accounting for 56% of the world’s total consumption. However, in 2023, India’s coal consumption exceeded the combined total of Europe and North America for the first time.

Oil consumption, in particular, rebounded strongly last year compared to 2022, largely due to China relaxing its zero-COVID lockdown policies.

Renewables’ share of total primary energy consumption reached 14.6%, an increase of 0.4% over the previous year. Together with nuclear, they represented roughly 19% of total primary energy consumption.

Renewables like solar and wind accounted for 8% of the energy generated in 2023, followed by hydroelectric (6%) and nuclear (4%).

Editor’s Note: The graphic was updated on July 16, 2024, to correct an error in the fossil fuel values.

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Energy Shift

Visualized: The Growth of Clean Energy Stocks

Visual Capitalist partnered with EnergyX to analyze five major clean energy stocks and explore the factors driving this growth.

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This line chart shows the growth of clean energy stocks and hints at their cumulative five-year returns.

The Growth of Clean Energy Stocks

Over the last few years, energy investment trends have shifted from fossil fuels to renewable and sustainable energy sources. Long-term energy investors now see significant returns from clean energy stocks, especially compared to those invested in fossil fuels alone.

For this graphic, Visual Capitalist has collaborated with EnergyX to examine the rise of clean energy stocks and gain a deeper understanding of the factors driving this growth.

Sustainable Energy Stock Performance

In 2023, the IEA reported that 62% of all energy investment went toward sustainable sources. As the world embraces sustainable energy and technologies like EVs, it’s no surprise that clean energy companies provide solid returns for their investors over long periods.

Taking the top-five clean energy stocks by market cap (as of April 2024) and charting their five-year cumulative returns, it is clear that investments in clean energy are growing:

CompanyPrice: 01/04/2019Price: 12/29/20245-Year-Return %
First Solar, Inc.$46.32$172.28272%
Enphase Energy, Inc.$5.08$132.142,501%
Consolidated Edison, Inc.$76.55$90.9719%
NextEra Energy, Inc.$43.13$60.7441%
Brookfield Renewable Partners$14.78$26.2878%
promotional graphic with a button and wheel that promotes the EnergyX investment site

But how does this compare to the performance of fossil fuel stocks?

When comparing the performance of the S&P Global Oil Index and the S&P Clean Energy Index between 2019 and 2023, we see that the former returned 15%, whereas the latter returned an impressive 41%. This trend demonstrates the potential for clean energy stocks to yield significant returns on an industry level, sparking optimism and excitement for potential investors.

A Shift In Returns

With global investment trends moving away from traditional, non-sustainable sources, the companies that could shape the energy transition provide investors with alternative opportunities and avenues for growth.

One such company is EnergyX. The lithium technology company has patented a groundbreaking technology that can improve lithium extraction rates by an incredible 300%, and its stock price has grown tenfold since its first offering in 2021.

promotional graphic that promotes the EnergyX investment site
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