The battery industry in 2022 continued to grow as Chinese battery manufacturers accelerated the deployment of their production capacity and actively explored international markets. For example, CATL, Envision AESC, and BYD actively invested in new production capacity around the world. Battery manufacturers in Europe and the US also moved beyond funding stages and began scaling up, with new players partnering with downstream automotive companies. In terms of policy development, the US Inflation Reduction Act updated the 2021 Build Back Better Act to include the aim of building a local battery value chain. This has already started to attract Japanese and South Korean battery companies with technology to co-locate to the US. Also, the Act has completely upended investment in the battery industry between Europe and the US, essentially nullifying investment prospects in Europe. This year will be a challenging one for many battery manufacturers. While at least 805 gigawatt-hours (GWh) of battery production capacity is due on-stream in 2023, which can theoretically balance global battery supply and demand, around 603 GWh of capacity investments will be in China. This will result in a shortfall in battery market supply elsewhere.