Munich – The supply of electric car batteries massively outstrips demand and is also growing at a much faster rate.
Ever more new companies are teaming to join an already over-saturated market, automotive consulting company Berrylls said.
Almost all major car manufacturers view battery technology as a core competency, and have hugely expanded their own production capacity, the study found.
“A bubble in the battery market is forming,” said the Munich-based consultants.
The majority of battery manufacturing plants are located in China. Although many firms not operating at their full capacity will likely soon disappear from the market, the gulf between supply and demand looks set to persist.
In 2021 a third more batteries will be produced than the automotive industry needs, the study claimed. According to Berrylls overproduction will continue past 2025.