Hello solar enthusiasts and lifestyle revolutionaries,
I’m excited to share some electrifying news about the solar industry, particularly about a key component of the future of solar – lithium-ion battery cells.
A recent report from Clean Energy Associates paints a bright picture of the future of the lithium-ion battery cells’ use in the industry. According to the report, the global manufacturing of these pivotal components is set to triple between now and 2025. This rapid expansion primarily surfaces from the surging demand from the electric vehicles sector, with home energy storage and grid-scale batteries also significantly contributing.
So, what does this mean for solar companies? Or better yet, for individuals looking into solar panels for your home? Well, this growth offers a promising trajectory for the solar array for home market; as the electric vehicle sector booms, so does the influence and demand for residential solar power.
Interestingly, the United States seems to be riding the forefront of this wave, with more production of battery cells anticipated than in the European Union. This could potentially be attributed to the Inflation Reduction Act of 2022’s incentives. The act tempted significant investment into the battery cell production realm with its tantalizing $35 per kWh tax credit and an additional $10 per kWh tax credit for assembled modules.
However, setting up these supply chains takes considerable time, and as per the CEA reports, the western markets need to adopt a sense of urgency if supply chain diversity is a desirable goal.
Speaking of diversity, the report also pointed out the cooling demand for alternative chemistries to the mainstream nickel manganese cobalt (NMC) and lithium-ferro-phosphate (LFP). However, lithium manganese iron phosphate (LMFP), an evolutionary battery chemistry, might find popularity in electric vehicles and energy storage sectors by 2025.
At the end of the day, these developments promote cost reductions for lithium-ion battery cells, as their use fuels the growth of midstream production capacity. As the supply chain blossoms, battery pack prices are expected to decline, not only making electric vehicles as affordable as their gasoline-powered counterparts but also making solar panels for your home even more financially attractive.
If you’re considering making the change and joining the millions already powered by solar, these developments should incite even more confidence in the potential and value of a solar array for your home. The sheer growth and development of the industry is truly inspiring, and I’m enthusiastic about diving deeper into these changes and creating a sustainable future, one solar panel at a time.
Stay tuned to my blog as I continue to break down the latest solar industry developments. Here’s to harnessing the power of the sun.
Original Articlehttps://pv-magazine-usa.com/2024/03/08/charged-by-the-ira-u-s-expected-to-outpace-europe-in-lithium-ion-battery-cells/
