Worldwide production of batteries with LFP cathodes takes place mainly in China, where it accounts for just over a third of total battery production. In contrast, the production of battery cells with NMC cathodes accounts for slightly more than a quarter in China.
China does not boast an abundance of battery metal deposits but ranks first largely due to its control over 80% of global raw material refining capacity. Additionally, China is the world’s largest producer of graphite, the primary anode material for Li-ion batteries.
In addition, Japanese miner Sumitomo Metal Mining is planning to double battery metal production by 2028. Although China will likely maintain its dominance for the foreseeable future, other countries are ramping up their mining and refining capacities.
In contrast, the production of battery cells with NMC cathodes accounts for slightly more than a quarter in China. By 2030, Chinese production will account for about a quarter of total global NMC cathode production. In the USA, NMC and NCA cell production dominates. This represents about half of the total production in China.
Global production of battery cells will increase sharply in the coming years, and cathode materials will be newly and further developed. Nevertheless, the market shares of these two technologies are expected to remain high until the end of the decade. This can be attributed to several aspects.
Chinaproduces by far the most aluminum of any country in the world. Producing more than 35.9 million metric tons of aluminum each year, China produces more than ten times that of the number two producer, Russia. Russia, India, and Canadaall produce a similar amount, 3.5 million, 3.4 million, and 3.2 million metric tons of aluminum a year. Country
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