Global Battery Manufacturing Equipment Market Size Likely to Reach at a CAGR of 26.5% By 2033

According to current market research conducted by the CMI Team, the global Battery Manufacturing Equipment Market is expected to record a CAGR of 26.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 7.9 Billion. By 2033, the valuation is anticipated to reach USD 68.2 Billion.

Battery Manufacturing Equipment Market: Overview

According to industry experts at CMI, battery manufacturing equipment is defined as the tool or system used in battery manufacturing. The market is gaining importance due to several factors, including the rising sales of electric vehicles across the globe and favorable government initiatives, such as policies, subsidies, and others.

Furthermore, the market for battery manufacturing equipment is also growing due to the growing investment by federal bodies and market players. In addition, the global shift towards green energy, including solar, wind, thermal, and other needed energy storage systems, drives the demand for this equipment. However, environmental concerns and regulatory challenges hamper the expansion of the industry.

Battery Manufacturing Equipment Market: Growth Factors and Dynamics

Expanding renewable energy projects

The energy storage system is very important for renewable energy projects, as lithium-ion batteries are widely used for energy storage purposes procured from renewable energy. Such projects are growing across the globe and need battery production capacity, spurring investments in manufacturing equipment.

For instance, according to the Department of Energy data, around 560 gigawatts of direct current (GWdc) of photovoltaic (PV) installations are projected for 2024, up about a third from 2023.

Rising investment

One important factor propelling industry growth is rising investment by market players. As of February 2023, Volvo Construction Equipment invested around USD 7.8 million in battery pack production at the excavator plant.

This establishment at the Changwon plant will produce a broad range of common electric storage solutions (battery packs) for Volvo Group and become a core competence center for electric excavators. Volvo Group’s strategies are anticipated to offer more sustainable solutions for the Asia Pacific market.

Supply chain disruption

Battery manufacture relies on crucial raw materials such as lithium, cobalt, and nickel. Disruptions in the supply chain for these components might cause delays in battery manufacture, affecting demand for manufacturing equipment.

Trade restrictions, geopolitical tensions, or reliance on limited raw material sources (such as those in specific regions like the Democratic Republic of Congo for cobalt) can all cause market uncertainty, impacting long-term equipment investments.

Report Scope

Battery Manufacturing Equipment Market: New Launches and Acquisitions

• In March 2023, LG Energy Solution invested around USD 5.5 billion to construct a battery manufacturing complex in Queen Creek, Arizona. The complex will consist of two manufacturing facilities, one for cylindrical batteries for electric vehicles (EV) and another for lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS).

• In March 2024, Averna collaborated with Gotion, bringing forth an innovative end-of-line test system designed to elevate the validation of electrical components within the manufacturer’s battery packs.