Renewable Energy July

Small, portable, and possibly a solution for the circular economy, batteries could be the key to decarbonize traditional energy sectors and transportation — with Lithium-ion (Li-ion) batteries dominating market demand due to the attractive raw material cost and superior energy density over other alternatives.

As countries renew their commitment to the clean energy transformation, the battery manufacturing segment is seeing tremendous growth with market-leading battery manufacturers optimizing their global operations, such as LG Energy Solution which aims to expand US-based manufacturing by 6 times that of 20221.

LAPP Powers the Machines
Behind Battery Manufacturing

To meet the battery manufacturing trends head-on and set them for an automation-driven future, all the facilities will require the right supporting equipment in place.

Cables are an essential part of the infrastructure that ensures the right connectivity, offers the behind-the-scenes support, and powers new technologies in the battery segment. From ÖLFLEX® to UNITRONIC® and ETHERLINE® ranges, discover the diverse products our customers in the machine-manufacturing or equipment building sectors are adopting to tackle the new era of battery manufacturing.

Growth Drivers for the Battery Manufacturing Industry
Let’s take a look at several interesting trends, which are further accelerating the pace of growth for the manufacturing of batteries:
Alternatives to Lithium-ion Technology

Various technologies aside from Li-ion batteries have been emerging, one of which notably is sodium-ion (Na-ion), an alternative option which is both lower-cost and more easily obtainable. In 2021, the Na-ion battery developed by China’s CATL promised to deliver 50% cost savings over an LFP battery2.

There are nearly 20 Na-ion battery manufacturing plants currently operating, planned or under construction, for a combined capacity of over 100 GWh, and 16 of these factories are in China3.

Push from Government Policies to Meet Net-Zero Carbon Emissions

COP26 in Glasgow was the moment countries confirmed a commitment to reduce carbon dioxide emissions4, where more than 100 countries having agreed to reduce 30% of the methane emissions by 2030.

From tax credits, subsidies to mandates, governments are implementing policies and incentives to support the development and adoption of electric vehicles and renewable energy sources.

Shift In Automotive Industry To EVs

A study by the International Energy Agency found that electric vehicles became the strongest driver of battery consumption, ahead of stationary storage and consumer electronics5. With a 65% increase in automotive Li-ion battery demand from 2021 to 2022, a report from ABB forecasted global EV sales to possibly exceed 21% CAGR over the next decade, with the increase in battery production and capacity to be even higher6.

Decisiveness in Diversifying Battery
Manufacturing Facilities

Keeping all the eggs in one basket isn't always the best strategy to deploy. Where main manufacturing facilities were mostly found in China and Korea initially, the shift in the automotive industry towards EVs, coupled with the need to maintain a robust & optimized supply chain, has pushed battery manufacturers to create and build new plants closer to where the EV manufacturing is.


1. LG Energy Solution,

2. Chinese battery giant CATL to supply first sodium-ion batteries to Chery EVs, CATL,

3. China could dominate the next big advance in batteries, New York Times,

4. COP26: What was agreed at the Glasgow climate conference?, BBC News,

5. IEA,

6. Electric Vehicle Battery Supply Chain Report, ABB,