Anya Sidhu

Rising chip prices are forcing portables manufacturers to look at increasing retail prices, reducing specifications or absorbing some of the cost and accept lower margins. This is acting to increase the gap between the prices of premium and budget products. Premium brands such as Apple or Samsung are better positioned to pass through cost increases due to stronger brand power and higher average selling prices, whilst more budget brands are more exposed to demand reduction if they increase prices. “While some stabilisation may occur, chip costs are expected to remain elevated in the near term, favouring companies with strong pricing power, efficient supply chains, and differentiated ecosystems,” said Benchmark battery analyst Anya Sidhu.

Norwegian Tier 3 cell manufacturer Morrow has announced that it is filing for bankruptcy, halting its homegrown cell production plans. The company operates a 6GWh facility in Arendal, Norway, which was expected to ramp up to 42GWh. The plant produces lithium iron phosphate (LFP) cells for both electric vehicle (EV) and battery energy stationary storage (BESS) customers, with plans for lithium nickel manganese oxide (LMNO) capacity in the future. Earlier this year, Morrow signed an LFP supply agreement with Proventia, covering commercial and off‑highway applications, that was scheduled to run until 2031.

Between 2020 and 2025 gigafactory capacity grew six-fold, and it is set to grow another 118% by 2030 as assessed by Benchmark’s Battery & Gigafactory Service. To celebrate International Battery Day, Benchmark explores how the top five battery producers have shifted since 2020, and which companies are set to hold the top positions in 2030.