Source: Bloombergtechnoz.com | July 22, 2024

Eramet SA, through Eramet Indonesia, stated that it does not see any excess global capacity for electric vehicle (EV) battery cell production at the end of 2025, as projected by several research institutions.

Eramet Indonesia Director Bruno Faour considers the EV battery capacity currently being developed to be in line with global demand for the future.

“We do not see excess capacity at this time for 2025. I want to say it clearly, that we are very cautious in predicting the future. It’s always very difficult. “Something can happen, this balance is very sensitive in reality,” said Faour in an interview with Bloomberg Technoz.

Moreover, there are factors beyond our control that can disrupt supply. A similar thing has happened to the manganese commodity, where at that time many projected processing capacity.

However, an unexpected thing happened where the world’s main manganese mine in Australia stopped operations because it was hit by a major storm.

“They are stopping and now everyone is looking for manganese because there is a shortage. So it’s very difficult to know in the short term because everything is moving one way or another,” he said.

Key Players

However, in general, the trend for EV and nickel batteries will continue to grow. In this regard, Faour believes that Indonesia will become a key player in this industry in the future.

According to Faour, excess capacity has the potential to occur in certain periods of time, but does not occur in the long term.

“Supply is growing step by step with new capacities coming in. So, there may be periods of excess capacity. “That’s always the case, but that’s not our long-term view,” he said.

The wave of battery factory projects being built around the world is projected to produce far more battery cells than the global economy needs, BloombergNEF warns in a new report.

Demand for lithium-ion cells is growing rapidly, as automakers electrify their fleets and utility companies install large batteries to stabilize the electric grid.

However, producers have announced so many new plants that capacity will exceed demand for the rest of the decade, according to BNEF.

By the end of 2025, the global battery industry will be able to produce five times as many battery cells as the world needs that year, BNEF estimates in its latest Electric Vehicle Outlook.

“This is good news for automakers and electric vehicle buyers, but it also portends a challenging future for new entrants to the battery industry,” the report said.