As electrification accelerates across the automotive sector and other energy-intensive industries, the demand for advanced battery technologies is surging at an unprecedented rate. According to a recent McKinsey report, global demand for lithium-ion batteries is projected to grow by approximately 33% annually, increasing from around 700 GWh in 2022 to roughly 4.7 TWh by 2030. *
To remain competitive, both greenfield and brownfield battery manufacturing facilities must rapidly scale operations while maintaining stringent quality standards and cost efficiency. This is particularly challenging given the inherent complexity and rapid innovation cycles in battery design and production. Manufacturers require a purpose-built digital solution that enables end-to-end control of the manufacturing lifecycle — from advanced cell and pack design, production line optimization, and manufacturing execution to high-throughput, precision quality inspection and testing.
As a Siemens Expert Partner with 30+ years of experience in high-tech manufacturing, we help battery producers overcome these challenges using proven strategies from other industries, such as semiconductor & solar or electronics:
Join us in this series in which we explore the challenges in Battery Manufacturing and show how modern, integrated and industry-specific Smart Factory solution platforms are the answer.
In this series, we’ll break down the key challenges in battery production — and the solutions driving next-gen manufacturing forward.
The first challenge on the road to manufacturing excellence is scalability. With exponential demand growth, even medium-sized battery factories are expected to rapidly ramp up —producing hundreds of thousands of cells per day, while large Gigafactories may deliver several million cells daily. But scalability is more than just increasing output. It’s about producing large volumes of the right cells, consistently meeting performance standards, and adapting to changes that occur as operations scale from pilot lines to full production.
Battery manufacturing involves complex process interactions. These can shift significantly as facilities scale, directly impacting quality, efficiency, and yield. Without smart and robust digital manufacturing capabilities, managing these variables during scale-up becomes a major hurdle.
Quality is crucial — not only to remain cost-competitive in a scrap-sensitive industry but also to ensure traceable compliance and realize the full performance potential of your engineering efforts.
Moreover, scaling introduces increased pressure on the supply chain: raw materials must meet not just growing demand but higher quality expectations. Seamless integration across the value chain — from raw material processors to cell and pack makers — becomes essential.
This approach leverages digital twin technologies to virtually design and test production lines before they are physically implemented on the factory floor. By simulating the entire production process, manufacturers can identify potential issues early on, minimizing risks and delays during the scale-up phase. This ensures a smoother transition from pilot to mass production while maintaining high efficiency and product quality.
A smart manufacturing collaborative platform enables real-time, cross-functional collaboration between engineering, production, and machine-building teams. By allowing all stakeholders to work together on the same platform, it accelerates the development and optimization of production systems, ensuring that all elements are aligned and ready for mass production. This collaborative approach reduces errors, speeds up scalability, and facilitates faster time-to-market.
End-to-end integration connects all elements of the production process – from product development through engineering, manufacturing, to quality control – into a cohesive, data-driven system. This integration enables seamless communication and data exchange across all stages of production, from concept to final product. By continuously monitoring and optimizing performance with real-time data, manufacturers can scale production efficiently while ensuring consistent quality and meeting regulatory standards.
Scalability today isn’t just about doing more — it’s about doing better, faster, and smarter.
Stay tuned as we explore the next challenge in the series: Complex Process Control.
*Source: McKinsey & Company Battery 2030: Resilient, sustainable, and circular