The battery market - France (2025)

1.2 Asian hegemony on the world market

The global battery market was valued at $***.** billion in ****, and is expected to grow at a CAGR of **.*% to ****.

Sales forecast for the global battery market World, **** - ****, in $ billions Source: ****

The battery market, encompassing manufacturing, distribution and supply, is essential for many applications, including consumer electronics, automotive, renewable energy storage and industrial applications. Growing demand for UPS (***) equipment in sectors such as healthcare, power generation and the chemical industry is expected to drive market growth.

In terms of battery production capacity, Europe could overtake the USA in the future, but China will remain in pole position.

Evolution of battery production capacity World, **** - ****, in gigawatt-hours (***) Source: ****

In ****, the Asia-Pacific region dominated the market, generating over **% of revenues. lead-acid batteries, because of their reliability and low cost, are preferred for heavy-duty applications, while lithium-ion batteries, which are lighter and have a lower energy density, are favored for more demanding applications.lithium-ion batteries, which are lighter and have a lower energy density, have a wider range of uses, from smartphones to electric vehicles. the lithium-ion battery segment accounted for the largest share of the global market in ****, with **%. [***]

In terms of applications, industrial batteries held a **% market share, while automotive batteries accounted ...

1.3 A growing French market

The French battery market is included in the electrical batteries and accumulators market corresponding to NAF code **.**. Its sales have been rising since ****, with an increase of **.*% over six years. This growth is set to accelerate with the biggest year in terms of sales growth from **** to ****. This **.*% increase can be explained by the rebound following a year **** marked by the global pandemic, which had a major impact on supply chains.

As INSEE has not yet updated data for the years ****, **** and ****, we can nevertheless estimate the size of this market by projecting the CAGR of previous years. With annual growth of *.**% between **** and ****, we can estimate a market of *.** billion euros in ****, if conditions remain stable.

Sales of batteries and accumulators manufacturing market (***) France, ****-****, in billions of euros Source: ****

1.4 France is heavily dependent on imports

As it is not possible to obtain precise foreign trade figures for batteries, we will be looking at HS code ****: Batteries, electric cells and parts thereof (***), which includes batteries. This will give us the international trade trends in this sector.

Exports:

French exports of batteries by value France, **** - ****, in $ millions Source: ****

After a drop in exports in **** due to the health crisis (***).

French exports of batteries by volume France, **** - ****, in tonnes Source: ****

Export volumes follow the same trends as the values seen above. Thus, after a slight drop in **** (***).

Main buyers of French batteries and cell batteries World, ****, in tonnes and $ millions Source: ****

Germany is the main buyer by value and volume. It is followed by the United States, and then only by European countries. It can be seen that the ranking of the main buyers by value and volume is not the same, which means that the various countries do not pay the same prices, most probably because they do not buy the same products.

Imports:

French imports of batteries by value France, **** - ****, in millions of $ Source: ****

After a slow decline between **** and ****, export values rose to $*** million in **** (***).

French imports of batteries by volume France, **** - ...

2.1 Breakdown of batteries imported and exported by France

A look at the breakdown of batteries imported and exported by France gives an idea of French market demand. France mainly imports manganese dioxide batteries (***).

Types of batteries imported and exported France, ****, percentage Source: ****

By ****, the Massif Central will be home to one of Europe's largest lithium mines, designed to supply the electric battery industry. This initiative is aimed in particular at freeing the automotive sector from its dependence on oil. Imerys estimates that the deposit could produce up to one million tonnes of lithium oxide. This would enable the production of **,*** tonnes of lithium hydroxide per year from ****, for a minimum period of ** years. This would be enough to equip around ***,*** electric vehicles with lithium-ion batteries every year. If these forecasts were confirmed, France would position itself as the world's second largest lithium producer, just behind Australia (***)[***].

As mentioned in the introduction, batteries have a variety of uses. We'll mention just a few of them in the following sections.

2.2 Growth in the number of electric cars in France

This strong demand for lithium-based batteries is partly explained by strong growth in French demand for electric and hybrid vehicles. Indeed, the number of sales of electric and plug-in hybrid cars in France grew slightly but steadily from **** to ****, then accelerated impressively between **** and ****, with a CAGR of over ***%, before returning to solid but more stable growth of *% between **** and ****, reaching over ***,*** cars sold in the latter year.

Such growth can be explained both by government incentives and by the technological development of this type of car.

Electric car registrations in France France, ****-****, units Source: ****

According to the barometer of Avere, the national association for the development of electric mobility, the total number of electric cars on the road in August **** is ***,***[***].this demand is partly intensified by the introduction of incentives for the purchase of electric vehicles by the French government (***).

As we saw in *.*, the ten biggest producers of batteries for electric vehicles are Asian, and come from three countries: China, South Korea and Japan.

2.3 The development of battery-powered electricity storage in France

The energy storage sector in France is still in its infancy. Although hydraulic storage has been established since the ****s and ****s, public support for non-hydraulic storage, including battery storage, only began in the late ****s. Energy storage is essential for managing the flexibility of the energy system, responding to fluctuations in production and consumption on a daily, weekly or annual basis. It also plays a key role in supporting the expansion of renewable energies, which are often limited by their intermittency[***].

The energy storage methods currently available are diverse and depend on technological capabilities. They include

hydropower storage, via lake-type hydroelectric plants and pumped-storage power stations (***); non-hydraulic storage, which includes electrochemical storage via electric batteries, chemical storage via renewable or low-carbon hydrogen, and other forms of mechanical storage such as compressed air or inertia.

Batteries fall into two categories: stationary (***). Currently, the majority of electric vehicle models are equipped with batteries with a minimum capacity of ** kWh. However, some models have higher-capacity batteries, up to *** kWh [***]. As a result, the energy capacity of the French electric vehicle fleet ranges from **.* to **.* million kWh.

Batteries are also divided into primary (***). Before recycling, electric vehicle batteries can be connected to the grid ...

3.1 The battery value chain

The following diagram details the battery value chain. The figures given for the main locations of the various production stages are taken from the UN Unctad Commodities at a glance **** benchmark study.

Source: ****

The following table gives details of the main companies involved in the various stages of battery production, as well as their country of origin.

3.2 The development of industry players in France

The number of establishments operating under NAF code **.**Z: Manufacture of batteries and electric accumulators has been growing for several years, reaching ** companies in **** (***).

number of establishments in the manufacture of batteries and electric accumulators France, **** - ****, in number of establishments Source: ****

The number of employees in the sector is also growing rapidly.

number of employees in the battery manufacturing sector France, **** - ****, in number of employees Source: ****

After a slight drop in **** due to the health crisis, the number of employees in the sector began to rise again in ****, reaching *,*** in **** (***).

Source: ****

The region with the most establishments is Île-de-France (***). The distribution of employees is also heterogeneous, but is distributed differently from the sector's establishments.

Source: ****

The region with by far the most employees in this sector is Nouvelle-Aquitaine (***).

3.3 Challenges and prospects for critical metals

The boom in electric cars is undeniable, but it raises crucial issues, particularly when it comes to the batteries that power them. These batteries, mainly lithium-ion based, require critical metals whose extraction and transformation have significant environmental impacts. In this section, we explore the challenges associated with these metals, their supply, their environmental impact and potential solutions for sustainable production in Europe.

Critical metals

Critical metals are indispensable raw materials whose access is subject to major constraints, due in particular to high geographical concentration or political instability in the producing regions. in the European Union, ** metals have been classified as critical, including cobalt, lithium, nickel and copper, which are essential for the production of batteries for electric vehicles, as well as for various industrial sectors.

Composition of lithium-ion batteries

EV batteries comprise fundamental components: the anode, cathode, separator and electrolyte. The most widespread models are NMC (***).

Quantity of critical metals in a vehicle according to engine type

Pressure on supply

Demand for these materials is growing exponentially. By ****, over **% of critical resources will be dedicated to electric vehicles. However, current extraction capacities are insufficient to meet these growing needs. for example, the Democratic Republic of Congo supplies **% of the world's cobalt, ...

3.4 BATT4EU: a strategic partnership for the future of batteries in Europe

The battery sector plays an essential role in Europe's energy transition and economic competitiveness. In response to growing global demand and the need for more sustainable production, the Batteries European Partnership (***), a group of key stakeholders from the battery industry and the Horizon Europe program.

A vision for the battery ecosystem

BATT*EU's ambition is clear: to make Europe the world's best battery innovation ecosystem by ****. This initiative aims to create a competitive, sustainable and circular European battery value chain, while contributing to a carbon-neutral society. These efforts support the EU's strategic vision of achieving climate neutrality by ****.

To realize this vision, BATT*EU is based on key objectives that integrate research and innovation (***) into industrial manufacturing. The aim is to boost the competitiveness of the European battery industry by ****.

Strategic objectives and expected impacts

The partnership focuses on general and specific objectives:

General objectives

Make Europe a pioneer in electromobility and stationary energy storage to achieve climate neutrality. Strengthen Europe's role in the global battery industry, creating sustainable economic growth and quality jobs. Promote safe, environmentally-friendly batteries and production processes to contribute to the EU's ambition of a pollution-free future.

Specific objectives

Develop advanced technologies for battery design, manufacturing and ...

3.5 The emergence of European battery start-ups

In the table below, some of the new battery cell plants established in Europe for the automotive sector are presented. The majority of the largest plants in operation are of Asian origin, often located in Eastern Europe. By contrast, all European plants are currently in the start-up phase

* GWh = approx. **,*** compact cars (***)

Source: ****

Focus on selected French startups:

There has been a significant number of French start-ups in the battery field, a sign that France not only wishes to assist in the development of this sector, but also intends to participate in it.

The best-known and most talked-about startup is Verkor, a company specializing in the production of low-carbon batteries, which was founded in **** and has just raised * billion euros. Last June, it inaugurated its high-power battery pilot plant in Grenoble. In addition, Verkor plans to open a plant in Dunkirk by ****, which is expected to create *,*** direct jobs and initially produce ** GWh per year, rising to ** GWh by ****. The company is backed by major shareholders such as Schneider Electric, Capgemini and Renault. Indeed, Renault has established a long-term partnership with Verkor to supply ** GWh per year of high-performance, low-carbon batteries. These batteries will be used in some of its ...

4.1 Typology of batteries on the market

Below is a typology of the battery offer. [***]

4.2 The battery industry

In ****, the number of batteries and accumulators placed on the market reached ***,*** tonnes, up **.**% on ****. This increase was particularly marked for industrial batteries (***).

Batteries and accumulators placed on the market France, ****, in thousands of tonnes Source: ****

Battery collection totaled ***,*** tonnes in ****, an improvement of *.**% on the previous year. Automotive batteries dominated this segment, with ***,*** tonnes collected (***). This positive trend reflects increased efforts to recover products from circulation.

Collection of batteries and accumulators France, ****, in thousands of tonnes Source: ****

Processing totaled ***,*** tonnes, down **.**% on ****. This drop is particularly noticeable for automotive batteries, with a fall of **.**%, while processing of portable batteries has increased by **.**%. The industrial sector, on the other hand, showed modest growth (***).

Processing of batteries and accumulators France, ****, in thousands of tonnes Source: ****

4.3 Price trends for lithium-ion batteries

Between **** and ****, the average price of a battery pack for an electric vehicle fell by **%. This trend is consistent with the following graph, which details the price evolution of lithium-ion batteries, the most widely used by electric vehicle manufacturers. The price breakdown between battery cells and the block in which they are integrated is also shown.

Above all, we can see a sharp drop in the price of both elements from **** to ****, followed by stabilization, and a slight increase in ****. The two curves also converge, mainly due to the development of "cell-to-pack" technologies that modify the way cells are integrated into their pack within the battery. Prices continued to fall in ****, notably with the development of cheaper cathodes in lithium-iron-phosphate batteries and the reduction in the use of cobalt in nickel-based cathodes.

However, the relatively inexpensive lithium-iron-phosphate technology is strongly linked to the price of lithium carbonate. As a result, the recent rise in the latter has led to a **-**% increase in the price of lithium-iron-phosphate batteries from Chinese manufacturers since September ****.

Lithium-ion battery prices World, ****-****, in $/kWh Source: ****

Rising costs of raw materials and battery components, coupled with inflation, have led to the first rise in lithium-ion battery ...

4.4 Raw materials prices

Battery manufacture relies onthe use of materials of varying raritylead, cobalt, lithium, zinc and nickel. It can therefore be interesting to look at the evolution of available prices - the price of lithium, for example, is not public. Prices for all materials peak in March ****, corresponding to the outbreak of the Russian-Ukrainian conflict. There is also a rise at the beginning of ****, followed by a smooth decline over the long term until the end of summer ****.

Nickel price :

Nickel price per tonne World, ****-****, US$ Source: ****

Lead prices:

Price per tonne of lead World, ****-****, US$ Source: ****

Zinc prices:

Price per tonne of zinc World, ****-****, US$ Source: ****

5.1 Regulations

On August **, ****, a new regulatory framework, the " Batteries Regulation "(***) ****/****.

As regards rechargeable industrial batteries, those used for Light Means of Transport (***), and batteries for electric vehicles, the provisions will start to apply from the date of entry into force.lectric vehicle batteries, the provisions will start to apply on August **, ****, ** months after the entry into force of a delegated act provided for in the regulation.

This legislative framework is part of the Green Deal for Europe, which aims to promote sustainable batteries, a circular economy and carbon neutrality. It also complements the **** European Action Plan, which places batteries at the heart of the European Union's industrial strategy.

The regulation covers all batteries produced, imported, placed on the market or put into service within the European Union, regardless of type, form, composition or use. However, certain batteries, notably used batteries, are only subject to minimum transfer requirements.

The players involved throughout the battery life cycle include manufacturers, agents, importers, distributors, logistics service providers and any other natural or legal entity involved in the manufacture, reuse, reconditioning or placing on the market of batteries, including online.

The regulation introduces enhanced requirements in terms of durability, safety and energy performance, depending on the battery ...

5.2 French government subsidies for the purchase of electric vehicles

Decree no. ****-*** of May **, **** on aid for the acquisition or leasing of low-polluting vehicles offers €*,*** in aid to private buyers of an electric car or utility vehicle, and €*,*** for companies. A €*,*** bonus is also available for plug-in hybrid cars. This aid is part of the automotive recovery plan announced by Emmanuel Macron in ****.

For hybrid cars, the bonus is awarded if the following conditions are met:

cO* emissions between ** and ** g/km acquisition cost less than or equal to €**,*** incl. VAT electric range greater than ** km

Source: ****

6. Segmentation

• Tesla
• CATL
• LG Chem
• Theion
• Verkor
• Viridian Lithium
• Green Corp Konnection GCK
• Vulcan Energy
• Blue Solutions (Bolloré Groupe)
• Alteo
• Iten
• Panasonic
• Tiamat Energy
• Eramet
• Tyva Energie
• Li-Cycle
• Limatech
• Inocel
• Glencore
• Neogy (Startec Energy Groupe)
• GS Yuasa
• BYD
• Foresee Power
• Batteries Prod
• Vélo Batterie- Batteries Prod
• Toyota
• Stellantis (Groupe PSA et Fiat)
• Volkswagen Group
• Audi (Volkswagen Group)
• Tata Group
• Bolloré
• Mecaware
• Nawa Technologies
• BMW
• Samsung Group
• SK Group Korea
• Nissan
• Arkema groupe
• Mob-Energy
• Batconnect
• Hydrovolt
• Wattalps
• Vlad