DETROIT -- Ford Motor Co., like most automakers, says it will rely on suppliers to make the battery cells for the electric vehicles it is developing.
That's not surprising, but it underscores growing concerns that battery suppliers such as LG Chem and Samsung will lack capacity to meet demand as Volkswagen, Volvo, General Motors and others promise dozens of new EV nameplates in the coming years.
IHS Markit forecasts that global installed capacity for lithium ion EV battery cells will need to reach 305 gigawatt-hours in 2025, eight times the capacity available today. Andrew Fulbrook, executive director of light-vehicle powertrain research and analysis at IHS Markit, says that ramp-up will be "hard, but possible."
Other estimates require even more capacity.
Financial analysts at Exane BNP Paribas said in a February report that the industry will need 600 gigawatt-hours of battery-cell capacity by 2025. VW, the world's second-largest automaker, predicts battery-electric vehicles will account for 25 percent of its global sales by 2025, which IHS says would require 680 to 700 gigawatt-hours of global capacity.
"That, for us at the moment, represents a hill that is too steep to climb for the supply base, with too much risk given the still-uncertain nature of how quickly demand will increase," Fulbrook said.