High-flying battery makers have much to win and lose: S&P Global Ratings
S & P Global Ratings said on Monday the world’s biggest battery producers globally face substantial upside and downside risks to ratings.
While their growth opportunities are significant, they will need to navigate fast-moving technology, heavy expenditure, geopolitical forces shaping trade lines and environmental strains, it said.
The demand for batteries that power light electric vehicles (including battery electric vehicles and plug-in hybrids) may grow as much as eight-fold by 2025 from 139 gigawatt hours in 2020.
Many countries are encouraging battery production to foster their own domestic electric vehicle industry.
“The battery sector has entered an extremely dynamic phase. Firms face substantial growth opportunities as electric vehicles rapidly replace legacy autos,” said S & P Global Ratings credit analyst Stephen Chan.
