APAC battery construction is projected to reach $45.4b by 2027, even as execution activity slows in the near term. Strong demand from electric vehicles and energy storage systems for data centres continues to underpin long-term growth across the region.
According to GlobalData, Asia-Pacific’s battery manufacturing construction pipeline remains robust. Despite softer execution spending, the high number of projects in planning stages signals sustained investment momentum.
APAC battery construction pipeline shows strong long-term growth
Between 2026 and 2028, the region is expected to host 206 battery manufacturing projects with a combined investment value of $127.2b. Although on-the-ground construction activity has slowed, planned and pre-planned developments indicate a solid expansion trajectory.
In 2026, execution spending is forecast at $23.4b. Planning-stage projects are valued at approximately $14.5b, whilst pre-planning activity stands at around $1.3b.
By 2028, planning investments are expected to rise sharply to $38b. However, execution spending is projected to fall below $1.3b, reflecting a shift from current builds to future project preparation.
EVs and data centres drive APAC battery construction
Demand for electric vehicles remains the central driver of APAC battery construction. At the same time, the rapid expansion of data centres is increasing the need for large-scale energy storage systems.
As regional economies push for electrification and digital infrastructure growth, battery manufacturing capacity has become strategically important. Governments and private investors are accelerating supply chain development to support these trends.
Regional strengths shape supply chain dynamics
China maintains dominance in raw material extraction and battery cell assembly. Its large-scale production ecosystem provides a foundation for regional supply.
Meanwhile, South Korea and Japan contribute advanced chemistries and processing technologies. These countries specialise in high-performance battery materials and next-generation innovations.
Indonesia and Malaysia are leveraging their nickel and cobalt reserves to support domestic refining and battery production facilities. This strategy helps secure supply chains and reduce reliance on imported raw materials.
Shift in chemistries to reshape industry
Kishore Chandra, Construction Analyst at GlobalData, highlighted evolving industry trends within APAC battery construction. Manufacturers are moving toward new battery chemistries designed to reduce dependence on lithium.
Companies are prioritising faster charging speeds, longer cycle life, and improved thermal stability. These innovations aim to enhance performance whilst lowering long-term costs.
As production scales up, battery prices are expected to decline. Lower costs could further stimulate EV adoption and expand the energy storage market across Asia-Pacific.
Outlook for APAC battery construction
Although execution spending is slowing in the short term, APAC battery construction remains positioned for significant medium-term growth. The large volume of projects in planning stages indicates continued investor confidence.
With EV demand rising, data centre expansion accelerating, and supply chains diversifying, the region is set to strengthen its leadership in global battery manufacturing. The shift from execution-heavy spending to pipeline expansion suggests that the next wave of construction activity may begin after 2028.
