Solar, wind, and energy storage manufacturers have all entered 2025 facing manufacturing oversupply and fierce competition on price. Lithium-ion battery cell producers are not insulated from the trend yet there are reasons to expect that market conditions for manufacturers will improve as consolidation occurs and demand continues to expand, Sam Wilkinson, a Director Clean Energy Technology, at S&P Global Commodity Insights told ESS News.
Last week S&P Global outlined its expectations for clean technology marketplaces, in its Top Clean Trends for 2025 report. It paints a picture of market and investment growth at the same time as manufacturers grapple with falling prices.
“There is an oversupply in the battery market right now. But I would argue that no high growth market in its early stages will ever have supply and demand perfectly balanced,” said Wilkinson. “But at some point in the next few years we will almost certainly see the reverse, once demand reacts to the low prices, which it already is starting to do.”
Benefits of scale
S&P Global reports that global lithium-ion battery annual production output surpassed 10 billion cells for the first time in 2024, the cause of both the oversupply and cost reductions as a result of scale.
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