The world is going to need a billion advanced batteries in order to power the world for another 100 years, according to a new report by the global technology consulting firm McKinsey & Co. The company said that the world is now poised to need an average of 20 billion batteries per year, and by 2045, a full decade from now, it expects to need nearly 40 billion.
That would put India’s annual demand at about $100 billion, with the country’s share of the global market roughly equivalent to the global share of China’s.
According to McKinsey, a country needs to be able to meet its electricity needs for an average 20 years in order for the technology sector to be in a sustainable state.
It said the demand for batteries would eventually need to be at the same level as the demand of power in the developed world.
McKinsey said the growth of the technology industry would need to occur “at an annual rate of at least 3% per annum, and the industry will need to meet this requirement with at least a third of its global demand coming from battery-powered systems.”
In an interview with CNBC, McKinsey managing director Andrew Riddell said that India, which currently accounts for about 13% of the world’s electrical energy, will need a massive battery growth in the next decade.
Riddoll noted that India’s demand for battery energy will likely reach a point where it will be more than twice as high as the U.S. In 2020, the country is expected to have an average consumption of just under 3.5 million kilowatt hours (kWh) of battery energy.
“By 2045 there is a clear pathway in the world to have a 50% to 100% share of global demand in the global battery market,” Riddick said.
“That’s why we’re very bullish on India.”
According to Riddells report, India is the world leader in battery-power production, and has about 6,500 battery-electric vehicles, with a global market value of about $20 billion.
By 2045 India will be a leader in the battery technology market, and it expects its share to reach about 70%.
McKinsey estimates that the industry would generate $10.6 trillion in global GDP by 2040, with an annualized growth rate of about 6%.
The report said India’s battery demand would be sufficient to power nearly half of all new electric cars by 2035, and its share of new battery-fueled vehicles would grow from less than 4% in 2019 to more than 15% by 2060.
McKinseys research also found that the country could be the first to reach 100% battery-charging capacity, with India expected to reach 90% by 2050.