Electric Vehicle Sales Are Set to Hit 23 Million Units in 2026 as Global Battery Deployment Surges Sevenfold Since 2020

2026-05-30 green

Paris, Saturday, 30 May 2026.
The IEA’s Global EV Outlook 2026 confirms electric vehicles are reshaping global transport at remarkable speed, with one in three cars sold in Europe expected to be electric this year.

A Market That Has Outgrown Its Critics

On May 20, 2026, the International Energy Agency (IEA) released its annual Global EV Outlook 2026 report, presenting what amounts to a comprehensive verdict on the state of electric mobility worldwide [6]. The findings are striking in their scale: global electric car sales surpassed 20 million units in 2025, representing 25% of all new cars sold that year [4]. For a market that skeptics repeatedly dismissed as a niche, the numbers now speak with authority. The IEA, headquartered in Paris, France, projects that full-year 2026 global EV sales will climb a further 20% to reach 23 million units, equivalent to nearly 28% of all worldwide car sales [2][4].

Battery Deployment: Seven Times the 2020 Level in Just Five Years

Underpinning the sales surge is a profound transformation in battery supply chains. Global EV battery deployment reached 1.2 TWh in 2025, a figure that represents approximately 30% growth compared to 2024 and is more than seven times the 2020 level [1]. EV batteries now account for over 70% of total global battery deployment [1]. Light-duty vehicles dominated this demand, representing over 85% of EV battery deployment in 2025, while battery demand for electric trucks more than doubled — driven primarily by China — rising from under 5% of the global total in 2024 to roughly 8% in 2025 [1].

Battery Prices Fall, But Supply Chain Pressures Are Mounting

Average battery pack prices fell by 8% in 2025, a development welcomed by automakers and consumers alike [1]. A key driver was the rise of Lithium Iron Phosphate (LFP) chemistry, which now accounts for over 55% of global EV battery deployment and whose packs are 40% cheaper than Nickel Manganese Cobalt Oxide (NMC) alternatives [1]. However, regional price disparities have widened considerably: Chinese battery packs cost 30% less than those manufactured in North America and 35% less than European-made equivalents [1]. This cost gap presents a direct competitive challenge to European and American battery producers, whose production costs remain up to 50% higher than those in China [1].

China Dominates Manufacturing; the West Faces a Structural Reckoning

The competitive landscape in battery manufacturing has tilted decisively toward China. Chinese battery producers expanded their global EV battery deployment share to nearly 75% in 2025, including capturing over 50% of the European Union market — up sharply from approximately 25% in 2023 [1]. CATL, the Chinese battery giant, maintained operating margins of between 10% and 15% annually from 2020 to 2024, rising to 18% in 2025, with 2025 revenues roughly 40% larger than the combined revenues of LG Energy Solution (LGES), Samsung SDI, SK On, and Panasonic Energy [1]. In stark contrast, non-Chinese producers remain heavily dependent on US government subsidies: without advanced manufacturing tax credits, LGES’s earnings before interest and taxes (EBIT) would have been approximately negative USD 650 million in 2024 and negative USD 200 million in 2025 [1].

Europe’s One-in-Three Milestone and the Road to 2035

For European markets, 2026 is shaping up to be a landmark year. Electrified vehicles are projected to make up 33% — one in three — of all new vehicle sales in Europe in 2026, up from 28% in 2025 [2][4]. European EV sales grew by over 30% in 2025 to reach 4.2 million units [2], and 2026 European sales are projected to grow a further 20%, supported by strict CO2 regulations and sustained policy backing [4]. The Netherlands, as one of Europe’s most EV-forward markets [GPT], sits squarely within this trajectory. The IEA’s report is particularly relevant for Dutch companies operating along the EV value chain — from battery technology and charging infrastructure to grid integration and mobility-as-a-service — as well as for Dutch policy makers working toward national climate targets.

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