US and Europe ramp up battery manufacturing efforts as China maintains dominance, IEA highlights industry shifts.

The US and European battery manufacturing race is set to begin, with China far ahead. The EU’s answer to the US Inflation Reduction Act (IRA) is expected to become law this summer, but its provisions will be effective from 2026. This follows a shift from Europe’s dominance in battery manufacturing to that of the US. Despite European manufacturing plans, several plants are in construction or producing batteries. However, Europe has been deprioritised as a destination for investors in the battery value chain. The International Energy Agency (IEA) has published its first-ever’special report’ on batteries, focusing on stationary storage and EV production. While around 85% of the world’s battery cell production is currently based in China, around 40% of new battery production capacity announcements are in other places, most predominantly the US and Europe.