APAC battery manufacturing plant construction set to surge

Core Insights - The Asia-Pacific (APAC) region's battery manufacturing construction pipeline is projected to reach $45.4 billion by 2027, driven by increasing electric vehicle (EV) demand and energy storage needs [1][2] - A significant number of planned projects indicates strong long-term growth potential, despite a slowdown in current execution activity [2][3] Industry Trends - Between 2026 and 2028, APAC is expected to host over 206 major projects, totaling approximately $127.2 billion in investment, primarily due to rising demand for electric vehicles and battery energy storage systems [3] - China is leading in battery manufacturing capabilities, while South Korea and Japan excel in high-performance chemistries and advanced processing technologies [3] - Indonesia and Malaysia are emerging as key players in the supply chain, benefiting from abundant nickel and cobalt reserves and favorable policies [3] Financial Projections - In 2026, execution spending is estimated at $23.4 billion, with planning expenditures rising sharply to around $14.5 billion and pre-planning at approximately $1.3 billion [4] - By 2028, planning expenditures are expected to peak at over $38 billion, while execution spending is projected to drop below $1.3 billion, indicating a shift towards conceptual and preparatory stages [4] Technological Developments - Novel battery chemistries are anticipated to reach mass production, reducing reliance on lithium and diversifying raw material inputs [5] - Emerging technologies promise enhanced performance characteristics, including faster charging, longer life, and improved thermal stability [5] - As production scales up and manufacturing challenges diminish, battery prices are expected to decline significantly, making energy storage solutions more accessible across various sectors [5]