Automotive lithium-ion (Li-ion) battery demand increased by about 65% to 550 GWh in 2022 from about 330 GWh in 2021. This was primarily due to growth in electric passenger car sales, with new registrations increasing by 55% in 2022 relative to 2021. Governments are offering financial incentives and subsidies to battery manufacturers and investors to encourage the establishment or expansion of facilities for the production of batteries. These incentives can include tax breaks, grants, low-interest loans, and cash incentives.