10 Most Advanced Countries in Battery Technology

Published on February 8, 2023 at 10:37 am by Usman Kabir in Lists, News, Tech

In this article, we discuss the 10 most advanced countries in battery technology.

Advanced battery technology manufacturing covers the creation of technologically advanced batteries with better design, safety, high energy capacity and more importantly, funding for research. Both commercial and educational institute research facilities are looking for methods to advance battery technology i.e., increasing capacity, reducing charging times, and lowering prices. The ultimate aim is to make available even more affordable batteries that will enable inexpensive grid storage and significantly longer ranges for EVs.

Concerns over the availability of crucial battery components like cobalt and lithium are driving a need for alternatives to the prevalent lithium-ion chemistry. Some of the top firms working towards this goal include Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV), among others.

Advancement in technology means that a country has the means to do better research for more efficient battery technology and designs, better development strategies and modes, and smooth processing and manufacturing facilities. This significantly differs from the countries which can manufacture more batteries than others. Because just manufacturing involves the assembly and creation of a large number of batteries with cheap labor. We will consider the countries in this list which have the highest number of patents, research and funding involved in this field.

Several countries are key players in the battery tech manufacturing industry and claim a major share of the global market. These countries are home to large battery manufacturers, and often have well-developed supply chains and infrastructure to support the production of batteries on a large scale. Some of the key battery tech manufacturing countries include China, Japan, South Korea, the United States and Germany.

The technology that revolutionized the world in terms of batteries was the invention of the lithium-ion battery. John B. Goodenough, an American scientist, developed the first lithium-ion (Li-ion) battery in 1980 using a cobalt oxide cathode. This invention, later in 2019, won Goodenough the Nobel prize in chemistry. His invention proved to be one of the breakthroughs of the 21st century as it allowed the development of handheld electronic devices, gadgets and electric cars. At an age of 100 years, Goodenough is still pushing the boundaries of science by working more energy-efficient and sustainable batteries.

These days, lithium-ion batteries, which have good energy-to-weight ratios, high open circuit voltages, and low self-discharge rates, are the most widely used rechargeable battery types for portable gadgets. These batteries have a long lifespan and are frequently used in consumer gadgets. Asia-Pacific (APAC) leads the lithium-ion battery industry as a result of the growing purchasing power of consumers and higher demand for electric cars. The Asia-Pacific lithium-ion battery recycling market is anticipated to expand to a value of USD 5,047.18 million by 2029, at a CAGR of 22.3% over the course of the forecast period, as stated by data bridge market research.

The next breakthrough in battery tech would be the commercialization of solid-state batteries. Solid-state batteries employ solid electrodes with a solid electrolyte composed of ceramics such as oxides, glass, and sulphides, as opposed to traditional lithium batteries, which use liquid and polymer gel electrolytes. These batteries may be recharged up to seven times and have a ten-year lifespan while having a greater energy density than lithium-ion batteries. Toyota Motor is regarded as having the most patents for solid-state batteries. Although solid-state batteries for EVs are not yet commercially available, they are likely to do so starting in 2025. In recent news, QuantumScape started delivering its latest solid-state battery prototypes to its clients.

In the Asia-Pacific region, Chinese firms dominate the electric vehicle (EV) battery market, accounting for 56% of the market share. Several of the ten largest battery manufacturers are based in China. South Korean companies and Japanese firms also have a significant presence in the market. The North American and European blocks are trying to keep up with the Asian manufacturers and researchers to decrease their dependence on them. Technology-wise Japan and the US lead the race with several famous names such as Toyota motors and Panasonic in Japan and QuantumScape, A123 Systems, Enovix, SES AI, and Amprius Tech in the US.

The global battery technology market size is expected to grow from $95.7 billion in 2022 to $136.6 billion by 2027 at a compound annual growth rate of 7.4%. The adoption of electric and hybrid vehicles and the increasing usage of wearable devices are responsible for the growth of the battery technology market size. Some other sectors, such as solar and wind energy systems, are also merging and the world is making its way towards environment-friendly energy.

Our Methodology

These were picked from a careful assessment of the battery industry. The details of each battery tech country are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions. The countries have been ranked according to the average number of patents filed by businesses based in these countries between 2017 and 2019.

Photo by Mika Baumeister on Unsplash

Most Advanced Countries in Battery Technology

10. Canada

Average no. of patents filed between 2017-2019: 3441

The battery market in Canada is anticipated to grow at a CAGR of 18.13 percent over the course of the forecasted years, reaching a revenue share of $6770.67 million by 2028. The projected timeframe is from 2022 to 2028, with 2021 serving as the base year for the market study. The strategic actions made by major market participants and the rising sales of consumer electronics are the main drivers of the market expansion in the nation.

Numerous strategic activities are being carried out in Canada by major battery industry participants. Joint ventures, investments, partnerships, and other strategies are among those anticipated to support the expansion of the battery market in Canada throughout the course of the forecast period. For instance, the American-European manufacturer Stellantis stated in 2022 that it will collaborate with LG Energy Solution. At a new Canadian facility, the alliance plans to produce batteries for electric cars.

Additionally, the joint venture has allocated almost $4 billion for the facility’s development in Windsor, Ontario. The factory will be in charge of providing batteries for a sizeable chunk of Stellantis’ North American production of electric vehicles. Therefore, over the anticipated years, these variables are expected to boost the market growth in Canada.

Last year, in September, the Canadian battery manufacturing industry got the best opportunity to invest in the battery industry. This is made possible by the US’s new electric vehicle tax credit which states that the EVs batteries and the vehicles themselves be made in the North American region. If Canada wants to cash this opportunity, they have to take the right decisions. Ideally, this new opportunity will open 250,000 job openings by the year 2030. Additionally, the Canadian economy can grow by USD 48 billion annually.

Just like Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Canada is also home to some of the most advanced battery firms in the world.

9. Italy

Average no. of patents filed between 2017-2019: 3786

Italy, with roughly 3700 patents to its name in battery technology, hopes to completely phase out coal power in favor of greener energy sources including gas, wind, and solar by the end of 2025. The country’s battery industry is anticipated to grow as a result of this change in energy generation since batteries may be utilized to store excess renewable energy for later consumption. Additionally, the country’s telecommunications industry is expanding quickly, and rising demand for batteries in data centers will probably have a favorable effect on the local battery market. The total amount of renewable energy installed in 2021 was 56,987 megawatts (MW).

The market for electric vehicles is expanding quickly in Italy’s automotive sector, propelling that nation’s battery market. The government of the nation has adopted a variety of initiatives and steps to encourage the use of electric vehicles (EVs) there. The majority of these EV-related activities have a favorable effect and are most likely to influence the country’s battery industry.

Italvolt announced ambitions to build an Italian EV battery facility in spring 2023, in August 2022. The 45 GWh battery cell facility that houses the EV battery plant is located in Piedmont, a region of northwest Italy. The firm anticipates obtaining the building permit in the early spring of 2023. MNC (nickel, manganese, cobalt) lithium-ion battery cells with silicon anodes will be produced at the new plant for automobile manufacturers to assemble into packs. Italvolt, in January 2023, also announced that it has made a deal with Israeli battery startup StoreDot to manufacture Li-ion batteries for the aforementioned manufacturing plant.

8. United Kingdom

Average no. of patents filed between 2017-2019: 5180

UK has several EV battery companies such as British Volt, Aceleron, Williams Advanced Engineering, Zenobe, Moixa and Oxis Energy etc. As the world is gradually shifting from fossil fuels to renewable energy resources, the UK government plans to ban the sale of diesel and petroleum cars by 2030. Hence, there is a growing demand for batteries in automobiles, aerospace, electrical utilities and other related sectors.

The government of the UK has promised nearly £500 million in the next four years for mass-scale production of batteries. British Volt has plans for a £2.6bn Gigafactory in Northumberland on the site of the former Blyth Power Station. The Company will produce 300,000 lithium-ion battery packs each year. These will be supplied to the automobile electric industry.

In May 2022, British Volt, a UK-based battery manufacturer, revealed that it has acquired EAS, a battery cell developer and manufacturer, to ramp up and develop its larger 46xx high-performance cell formats. The company said that this technology will be delivered to customers faster and more efficiently. The company has also collaborated with Aston Martin, the ultra-luxury car maker, to launch its first electric vehicle in 2025.

7. France

Average no. of patents filed between 2017-2019: 7733

France is taking part in the race for the most technologically advanced battery manufacturing country in the world with an average greater than 7000 patents for the years 2017, 2018 and 2019. According to the report by Bonafide Research, the market for EV batteries in France is expanding quite quickly. According to Statista, the revenue of the EV battery manufacturing segment is expected to reach USD 13.19 billion in 2023. During the forecast period of 2023 – 2027, the CAGR is anticipated to reach 18.65% which is equivalent to a projected market volume of USD 26 billion.

This is due to efforts made by the government, automakers, and OEMs in the battery sector to lessen their reliance on nations outside the European Union for the production of batteries. There is now a lot of reliance on the acquisition of raw materials and other stages of the value chain, thus various attempts are made to construct a domestic supply chain with the establishment of mega factories, which are in varying phases of development in various regions of Europe.

Two gigafactories for the production of EV batteries are now being built in France, one of which will have a 9 GWh capacity by 2024 and be expanded to 30 GWh by 2030 through strategic cooperation between Renault Group, Verkor, and AESC (occupied by Envision Group). The other is from ACC, a cooperation between Stellantis and TotalEnergies subsidiary Saft. This will encourage the expansion of the batteries business in France and lessen reliance on Asian and North American nations for EV batteries.

Some of the key companies in the French market include Verkor, Saft, easyLi and Olenergies. Verkor is creating two types of batteries including large cells called pouch cells and small cells called cylindrical cells. The modules made from the cells are subsequently sent to customers. Verkor has decided to concentrate on producing significant volumes of battery cells for the stationary storage and electric car industries.

6. Taiwan

Average no. of patents filed between 2017-2019: 10702

The covid-19 pandemic had positive impacts on the global battery manufacturing industry and Taiwanese companies took advantage of it as stated by researchers at the Industrial Technology Research Institute (ITRI). Especially the Taiwanese battery pack manufacturing industry benefited from it. In the years 2017, 2018 and 2019, an average of 10,000 patents were filed by the Taiwanese battery manufacturers

With US$4.16 billion in sales in 2019, Taiwan has a far bigger presence in the battery pack assembly industry and had close to 13% of the global market share. Simplo, DynaPack, Celxpert, Delta, and Foxlink are competitors in this market. Due to Taiwan’s connections to international IT supply chains, battery pack assemblers are well-positioned to capture a sizeable market share. According to ITRI statistics, Taiwanese companies manufacture over 60% of laptop batteries worldwide, over 45% of tablet batteries, and 11% of power tools.

Apart from that, Taiwanese battery manufacturers are looking to get into the EV battery market which not only provides great growth opportunities, and high-profit margins and is the upcoming major trend in battery manufacturing. Taiwan’s current EV battery production is limited to small vehicles such as EV 2-wheelers.

In September 2022, ProLogium, a battery manufacturer from Taiwan was seeking to expand its operation of solid-state batteries into Europe for establishing a 120 GWh capacity plant. This plant, when established, will be able to contribute to the emerging EV battery market.

Just like Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Taiwan is also home to some of the most advanced battery firms in the world.

5. South Korea

Average no. of patents filed between 2017-2019: 20757

The three major South Korean battery manufacturers, LGES, SK On and Samsung SDI, supply EV batteries to Tesla Inc, General Motors Co and Ford Motor Co which produce more than a quarter of the global EV battery market. LG Energy Solution has a market share of 14%. SK On has a market share of 7% and Samsung SDI has a market share of 5%. Samsung SDI is the world’s sixth-largest EV battery manufacturer. It intends to reach a 23 GWh yearly output capacity.

South Korea is a hub for manufacturing and innovating technology for batteries. Every year dozens of startups are launched in this country. Some of the innovative startups are Standard Energy, Kokam, NS, Zantropy, Elentec and EnerTech International etc.

Posco Chemical, the South Korean battery manufacturer, has expected production to rise from 30,000 tons per year to 90,000 tons per year. If its estimates are fulfilled it will be the largest capacity for a single cathode material plant globally. The capacity will be sufficient to supply batteries for 1 million high-performance EVs. The plant will focus on the production of high-nickel cathodes used in electric vehicles including nickel cobalt manganese aluminum and nickel cobalt manganese cathodes.

SK On, a South Korean battery manufacturer, revealed its battery charging technology at CES 2023. SK On claims that this technology will reduce charging time to 18 minutes for electric vehicle batteries from 30 minutes. A special coating is developed to reduce the resistance of the anode to increase the charging time. The company added that this technology is mainly focused to reduce the resistance of the anode when lithium is being injected during charging.

4. Germany

Average no. of patents filed between 2017-2019: 21193

When it comes to technology and innovation in the electric vehicle sector, Germany is one of the leading countries. It is home to some of the best electric vehicle makers including Volkswagen and Tesla. In 2019, with a €1 billion fund accessible to German businesses and an extra €500 million to promote research into current and future EV batteries, the German government is striving with the European Commission (EC) to speed up large-scale battery manufacturing in Germany and throughout Europe.

Volkswagen, a German-based vehicle manufacturer, is planning to launch a new prismatic cell design for its batteries in 2023. These batteries will be installed in Volkswagen vehicles. The company expects to have its unified cell design which will be able to power 80% of its electric vehicles by 2030.

Scientists at KTI have invented a minimally invasive technology to mine lithium in geothermal plants in Germany. Using this technology, thousands of tons of lithium could be extracted from the German and French Upper Rhine trench every year.

The government of Germany has approved a plan to spend $6.1 billion over three years to increase the number of charging points for electric vehicles across the country. The country will increase its charging stations by 14 times. Germany has 70,000 charging stations now and plans to reach 1 million by 2030. The country also plans to have fifteen million electric vehicles on the road by 2030. Currently, there are 1.5 million electric vehicles in Germany.

3. China

Average no. of patents filed between 2017-2019: 29958

Chinese companies increased their battery production from 10% of the world’s total to 50% by the year 2019. Currently, Chinese companies are responsible for 56% of the EV battery market, followed by Korean and Japanese companies. Four of the ten largest battery manufacturers are headquartered in China. China is also dominating other parts of the battery supply chain, including refining and mining of battery materials like lithium and graphite. A few of the Chinese battery companies include CATL, BYD, CALB, Guoxuan, Sunwoda, and SVOLT.

According to the Center for Strategic and International Studies, the Chinese government has invested a hefty USD 100 billion in the “new energy” car sector over the last ten years (including electric and hydrogen fuel cell vehicles). Part of what is fueling the need for EV adoption is China’s pledges to reach peak emissions by 2030 and carbon neutrality by 2060. The use of energy storage technology is also a crucial component to the achievement of China’s renewable energy targets.

From 2021 to 2022, CATL, a leading battery supplier, expanded its market share from 32% to 34%. This company is responsible for one-third of the world’s EV batteries. CATL provides lithium-ion batteries to Peugeot, Honda, Toyota, Volvo, Tesla, Hyundai, BMW, Toyota and Volkswagen. Module to Bracket (MTB) is a new battery technology introduced by CATL for heavy-duty electric trucks. This technology integrates the battery module directly into the vehicle chassis. According to the company, this battery will be able to lower the weight of the truck by 10% and enable a 40% increase in battery system utilization.

In 2022, BYD doubled its market share from last year and became the second biggest battery supplier with a market share of 12%. The market share of CALB is 4%. Guoxuan has a market share of 3%. Sunwoda has a market share of 2%. SVOLT has a market share of 1% as of 2022.

The growth of Chinese companies was driven by the demand for batteries from different car manufacturing companies. Europe, the US, Korea and other giant manufacturers of cars aim to reduce fossil fuel consumption and carbon emissions significantly by 2030. Consequently, the production of lithium has increased by more than 3500% relative to 2020 production.

2. United States

Average no. of patents filed between 2017-2019: 41138

The United States had a lithium-ion battery manufacturing capacity of 44 GWh in 2021 and it is estimated to reach 91 GWh by 2025. Currently, the US is the second largest battery manufacturer in the world. The advancement of technology is also playing a great role in the manufacturing of batteries. Most of the new and innovative technologies for batteries came from the US.

In 2020, the US govt strategized the expansion of battery research and development. The government, first, tried to accelerate production, development and public awareness about EVs utility-scale energy storage systems. Moreover, the funding for battery tech research was increased. Their main focus was to develop technologies to reduce their reliance on rare earth metals. Many American automakers are also investing billions in new battery production facilities to secure capacity for their new electric cars (EVs).

The Department of Energy is advocating a wide range of actions to strengthen domestic raw material supply and expand the nation’s capacity for lithium refining and battery production. The size of actual activity, however, is much smaller than what is required to begin catching up to China. The US is also investing in the recycling of battery materials to reduce their environmental impact. In Nov 2022, American Battery Technology Company (ABTC) won USD 10 million in funding to commercialize battery recycling technology.

Some of the largest battery manufacturing companies based in the United States are QuantumScape, A123 Systems, Enovix, Stem, SES AI, Amprius Tech, Solid Power and American Battery Technology Company. Although other countries are producing more batteries globally, the US is the hub for technology and EV manufacturing. Tesla, an EV automobile company, is a US-based company in Nevada.

QuantumScape is planning to transform energy storage with solid-state lithium-metal battery technology. These batteries will be able to provide greater energy density, and faster charging and these batteries will be safer to support the transition away from previous energy sources toward a lower carbon future. The market cap of QuantumScape is $2.31 billion

The demand for lithium-ion batteries for electric vehicles is rising significantly. It is expected to reach 9300-gigawatt hours by 2030. According to S&P Global Market Intelligence, Contemporary Amperex Technology Co. Ltd. (CATL), the largest battery supplier in the world based in China, was in discussions with its U.S.-based customers to build a manufacturing hub in North America. The biggest battery manufacturers are located in regions with high electric vehicle demand.

1. Japan

Average no. of patents filed between 2017-2019: 58950

Japan has highly profited from the increasing demand for EV batteries and consumer electronics. It is producing batteries worth nearly 930 billion Japanese yen (JPY) yearly and covers the entire battery industry by producing batteries from watch button cells to lead acid car batteries. Japan has produced more than JPY 436 billion worth of batteries for electric vehicles, 209 billion JPY worth of Nickel metal hydride batteries, and JPY 154 billion worth of Lead acid batteries. Some of the world’s biggest battery companies are located in Japan including Panasonic, Murata, Kyocera, Toshiba, ELIIY Power, FDK, Mitsubishi, and EV Energy.

Panasonic has a market share of 10%. In 2015, it was the only company to supply batteries to Tesla. It is working with Tesla to start production of its new 4680 battery, which is more than double in diameter compared to standard batteries. Panasonic has developed a new type of lithium-ion battery that uses a solid electrolyte instead of a liquid one, which is said to increase the battery’s energy density and safety. Panasonic has shipped more than 200 billion batteries across the globe since 1931. The company will triple its battery production by 2028.

Toshiba has also developed a new type of lithium-ion battery that uses a solid electrolyte instead of a liquid one, similar to Panasonic’s technology. The company has also developed a new type of lithium-ion battery that uses a nickel-manganese-cobalt oxide cathode.

In April 2022, the industry ministry of Japan announced that they are aiming for a 20% share of the global rechargeable battery market in 2030 by boosting global output capacity at Japanese companies nearly 10-fold to 600 gigawatt hours (GWh). The country requires a significant investment of over $24 billion to establish a strong manufacturing base for batteries used in electric vehicles and energy storage. Additionally, a specialist panel responsible for creating a battery strategy has set a goal to have 30,000 trained workers for battery manufacturing and supply chains by 2030.

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