EV Batteries Plant Construction Market Size - By Component (Building and Infrastructure, Machinery and Equipment, Energy Storage Systems, Control Systems and Automation), By Battery, By Construction, By Plant Capacity & Forecast, 2024 – 2032

EV Batteries Plant Construction Market Size

EV Batteries Plant Construction Market was valued at USD 11.3 billion in 2023 and is estimated to register a CAGR of over 11.5% between 2024 and 2032. Government incentives and subsidies are expected to drive business growth. Several governments across the world are implementing policies to support the transition to electric vehicles (EVs) and reduce carbon emissions. These policies include tax breaks, grants, and subsidies for companies investing in EV battery manufacturing infrastructure. As governments prioritize sustainability and clean energy, these incentives are expected to continue driving market growth in the EV battery plant construction, supporting the expansion of production capacities.
 

The surging demand for electric vehicles propelling the EV batteries plant construction market growth. As consumers are increasingly prioritizing sustainability and seeking alternatives to fossil fuels, the adoption of EVs is rapidly growing. The growing demand for EV supports manufacturers to expand their production capabilities. Companies such as Tesla, Volkswagen, and General Motors are scaling up their EV production, driving the need for more advanced and higher-capacity battery plants. The continuous innovation in battery technology, such as improvements in energy density and charging speed, also fuels market demand.
 

High capital expenditure is restraining the EV batteries plant construction market growth. Building battery manufacturing facilities requires substantial financial investment in advanced technology, machinery, and infrastructure. High initial costs strain the budgets of established companies and limit opportunities for smaller players and new entrants. However, the EV battery market offers substantial growth potential, the high capital expenditure required for plant construction remains a critical constraint, impacting the ability of new and smaller players to enter and compete effectively in the market.
 

EV Batteries Plant Construction Market Trends

Technological advancements in battery chemistry are a crucial growth driver for the EV batteries plant construction business. Innovations such as solid-state batteries, lithium-sulfur technology, and enhanced energy density solutions are transforming the battery industry. These advancements improve battery performance, increase energy storage, and reduce charging times, which are essential for meeting the evolving demands of electric vehicles. As battery technology advance, manufacturers need to build new plants equipped with the latest technology. The ongoing innovation in battery chemistry enhances EV performance and accelerates the construction of advanced battery manufacturing plants.
 

EV Batteries Plant Construction Market Analysis

Based on the construction, the market is categorized into new construction, expansion, and renovation. In 2023, the new construction segment accounted for a market share of over 70%. As governments and private companies increase investments in accessible charging networks, the demand for electric vehicles continues to rise. This surge in EV adoption creates a need for more advanced battery manufacturing facilities to meet the growing market demand. The installation of fast-charging stations and ultra-fast charging networks requires high-performance batteries, driving the need for new and upgraded plants. The expansion of EV charging infrastructure boosts the overall demand for electric vehicles and increases the construction of new battery plants.
 

Based on the component, the EV batteries plant construction market is divided into building and infrastructure, machinery and equipment, energy storage systems, and control systems and automations. In 2023, the control system and automation segment was worth over USD 2.1 billion market revenue. As battery manufacturing becomes increasingly complex, integrating advanced automation technologies and robotic systems enhances production efficiency and precision. These technologies streamline processes such as cell assembly, quality control, and material handling, leading to higher throughput and reduced production costs. Automated systems can handle the delicate task of assembling battery cells with greater accuracy and speed compared to manual methods.
 

The advancements in automation and robotics are driving significant investment in new machinery and equipment, facilitating the rapid expansion and modernization of battery manufacturing facilities.
 

U.S. EV batteries plant construction market size surpassed USD 1.4 billion in 2023, due to the corporate investment and strategic partnerships. Major automotive and technology companies are increasingly providing substantial capital to build and expand battery manufacturing facilities across the country. Additionally, strategic partnerships between automakers and battery manufacturers, such as the joint ventures between LG Energy Solution and GM or Panasonic and Tesla, are accelerating the development of new production facilities. These collaborations leverage combined expertise and resources, enhancing production capabilities and driving innovation.
 

The Chinese government has implemented several policies and incentives to promote the development and adoption of electric vehicles. These policies include subsidies for EV production, tax incentives for battery manufacturers, and significant funding for research and development in battery technology. For instance, the “Made in China 2025” initiative aim to accelerate advancements in battery technology and expand production capacities. This robust support creates a favorable environment for the construction of new battery plants and encourages both domestic and international companies to invest in China.
 

Similarly, the expansion of automotive electrification programs in Europe anticipated to drive market growth. Major European automakers are focusing on electrification of their vehicle lineups, significantly increasing the demand for high-performance EV batteries.
 

EV Batteries Plant Construction Market Share

Fluor, Jacobs, and Bechtel dominate the market with around 10% revenue share in 2023. Fluor Corporation focuses on its extensive experience with large-scale industrial projects. By emphasizing its global reach and integrated services, Fluor aims to secure high-profile contracts with leading automakers and battery manufacturers.

Jacobs Engineering emphasizes its capabilities in advanced technology and sustainability. By offering innovative solutions and robust project management, Jacobs targets opportunities in new battery technologies and green building practices, aiming to attract investments from companies prioritizing cutting-edge and eco-friendly production facilities.
 

EV Batteries Plant Construction Market Companies

The major players operating in the industry are:

• AECOM
• Barton Malow
• Bechtel
• Clayco
• Fluor
• Gray
• Jacobs
• Turner
• Walbridge
• Yates
   

EV Batteries Plant Construction Industry News

• In March 2024, Northvolt launched electric car battery plant in Germany. The company aims to invest USD 4.9 billion in the plant and production is set to start in 2026. The new project is expected to create around 3,000 jobs.
   
• In March 2023, Panasonic Energy selected Turner Construction Company and Yates Construction to build its USD 4 billion EV battery manufacturing facility in De Soto, Kansas. Construction plans include the assembly facility, a central utility plant and support buildings. Panasonic expects to begin production by the end of March 2025.
   

This EV batteries plant construction market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2032 for the following segments:

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Market, By Component

• Building and infrastructure
• Machinery and equipment
• Energy storage systems
• Control systems and automation      

Market, By Battery                

• Lithium-ion batteries
• Solid-state batteries
• Lead-acid batteries
• Nickel-metal hydride (NiMH) batteries
• Others            

Market, By Construction                  

• New construction
• Expansion
• Renovation    

Market, By Plant Capacity

• Up to 10 GWh
• 10-50 GWh
• Above 50 GWh          

The above information is provided for the following regions and countries:

• Existing Market
  • U.S.
  • Canada
  • Germany
  • Sweden
  • UK
  • Hungary
  • Poland
  • France
  • China
  • South Korea
  • Japan
  • Rest of the existing market
• Emerging market
  • Spain
  • Thailand
  • Singapore
  • Malaysia
  • Mexico
  • UAE
  • South Africa
  • Rest of emerging market