Global electric vehicle market comes with both environmental and economic benefits. If the economic factors are being focused upon, the environmental ones need more attention as EV batteries are expected to pose a threat to the environment within a decade owning to their short life. Key industry players have been considering both these factors and coming up with innovative solutions to fight problems that might arise in the future. Even though the battery technology is evolving, key players in this industry are not able to meet the demands for the electric vehicles. One of the most important reasons for this is the unavailability of batteries. This shortage has been termed as ‘temporary global battery supply shortage’ by the industry experts. In 2017, Hyundai was hardly hit by this situation as its cell supplier LG did not have batteries in stock. The demand Hyundai’s loniq EV increased tremendously in 2017 in the U.S but they sold only 544 EV’s even though they were booked with sales. Norwegian customers also experienced such kind of situation with the Kona EV. On the other hand, new entrants in this market like Nissan and Tesla are able to meet their EV demand as they had already though through this situation. The shortage of EV batteries is making companies get into the battery manufacturing business which is not very easy. A competent battery is the soul of an EV. Chemical giants like BASF and 3M are becoming suppliers to battery makers now. The EV battery web has suppliers for different components of battery now.
Tesla is ahead of the game with regards to electric vehicles. It established its own factory for manufacturing of lithium-ion battery and electric vehicle subassembly. The Tesla gigafactory 1 is situated in near Clark, Nevada. But, to meet the full demand for electric vehicles even tesla need to expand their facility size and capacity by three times. Their plan for this facility is with a production capacity of 100 GWh for cars and 150 GWh total. This is expected to boost the sale for Tesla EV’s in the future if supply and demand balanced. As far as other brands are concerned, a detailed production plan needs to be in place to meet the rising demands. A Daimler spokesperson stated that sales of their electric models are expected to constitute 15% to 25% of total Mercedes-Benz sales by 2025. That is a huge number for Daimler. It also plans to introduce 10 electric vehicles by 2022, way before their proposed year 2025. Norway and the Netherlands are planning a complete ban sale of new gas-powered cars by 2025.
One of the major factors that is also negatively influencing the global electric vehicle battery market is the insufficient supply of cobalt and lithium. As per the Deutsche Bank market research, battery segment covered 25% of all lithium production out of which 14% is used by the EV industry.
Popularity of electric vehicles is rising a level up every year. In 2018 the number of registered electric vehicles sold solely in the UK was above 50000. It has been reported as the most successful year so far in terms of electric vehicles battery market. The uncertainty and un-stability surrounding combustion and diesel powered vehicles is rumbling which led to a huge adoption and shift towards electric vehicles. However, electric vehicles especially cars are still not free of errors. Research studies show that electric vehicle batteries are temperature dependent. Charging time for a normal battery increases significantly when the weather is cold as compared to an EV battery. A DCFC charger has an increased efficiency of charging an electric vehicles battery to 80 percent just in 30 minutes. But at higher temperatures, somehow it exhibits inefficiency of 36 percent lesser charge in the same time span. So, the batteries are temperature dependent and degrade its efficiency under cold temperatures. But, technology effectively has been able to gain significant traction in the past five years but affordability is still a lacking parameter.
The size of the global market for Electric Vehicles Battery it is expected to reach US$ 542.87 billion by 2030, expanding at a compound annual growth rate (CAGR) of 12.9 % from 2022 to 2030.
One of the key factor fueling up the market is rising demand for electric cars. However there are several other reason responsible for driving the market for instance merger of key component manufacturers & increased number of OEMs as well as enhanced charging infrastructure. Besides, in coming future, the electric vehicle battery market specifically built for passenger cars will comparatively witness faster growth than the commercial vehicle. By knowing that usage of electric vehicles gradually lessens the high emission levels has fostered governments to promote it actively.
Electric vehicles (EVs) and hybrid electric vehicle (HEVs) are the two factors that will dominate the global electric vehicle battery market positively. EVs and hybrid vehicles are primarily powered by batteries. Various countries are taking initiatives in towards reduction of global warming. On increasing verge, countries are offering tax benefits and incentives to mount the use of green vehicles like EVs and HEVs. Moreover, to involve more and more manufacturers for the production of EVs and hybrid vehicles, top vehicle market regions have started providing subsidies and incentives to them. This will be another factor towards the promotion of the sale of electric vehicle battery market in the upcoming time.
Innovations by the EV industry players:
One of the highly-priced German automaker, Porsche, announced it will bake three years of unrestricted battery charging into the rate of its first ever electric vehicle. In addition to that, Porsche Taycan, an all-electric sports car owners will be offered fast-charge services with help of installed charging stations. It partnered with Electrify America at the time of electric sedan launch. Besides that, it is 600-horsepowered and will be able to travel a 310 miles with a fully charged battery. It contains specialized 800-volt battery that has ability to absorb 350 kilowatts resulting in faster charging. So far, this vehicle has been quicker than any other vehicle and as compared to Tesla, whose batteries were competent to absorb 120 kilowatts. However, Tesla’s Model S beats the Taycan in terms of range, as it thrived to the largest capacity that is 335 miles.
Another innovative and cutting-edge electrification goals are intended to come from Volkswagen (VW). The industry giant is not just planning to pump out millions of cars but also plans to be a stepping stone in game of electric vehicle batteries. Subsequently, VW has declared that its Group Components unit (in-house supplier) will be a separate and independent corporate entity which will carry “end-to-end” responsibility for the battery, beginning with competence development for the cells up to the recycling of the batteries. This is huge as most of the European auto Industry is sparse of big battery manufacturer which can be considered the downfall of Asian suppliers. Further, VW has declared that it is investing in Forge Nano (California startup) which aims to enhance battery cells efficiency. This is all in direction of honing the company’s profile in the e-mobility field which is possible due to its higher product strength and manufacturing depth.
Another big announcement for VW is that its Group Component is expected to begin production of fast-charging stations for electric vehicles. These stations fundamentals will be based on powerbank, enabling four cars to charge up at once. VW’s shift to e-mobility will offer thousands of jobs in the U.S. German government has taken initiative to support domestic production on battery cells by offering more than $1 billion and there is high possibility of Volkswagen to be important part of this initiative.
Silicon’s importance in electric vehicle batteries is well established now. But, 24M is coming forward with “semisolid” lithium-ion batteries which is expected to leapfrog other competitors in terms of energy density. With higher energy density, comes lesser cost, lesser weight, higher longevity and promising EVs without range anxiety or sticker shock.
Across the globe, registered sale of electric vehicle in 2016 was more than 500,000, a figure that is expected to jump sevenfold by 2022, according to the U.S. Energy Information Administration. The factor that may restrict a customer from buying these electric vehicles is its over-price and confined driving range that doesn’t covers more than hundred miles (kilometers) when charged once. To iron out these issues, adoption of Silicon for EV batteries will boost energy storage. Silicon’s distinctive characteristic like higher energy density can act as better anodes in batteries. Besides that, Silicon is capable to cut the cost per kilowatt hour in EVs by 30 percent.
California-based Sila Nanotechnologies is targeting to have its own technology which uses Silicon as anodes in more than a million EV batteries. The company was born in a laboratory of Georgia Institute of Technology. The company claims the development of a technology that is able to fully replace graphite, facilitating higher ranger and boosted capacity. Amperex Technology Limited (300750.SZ) and BMW AG (BMWG.DE) are world’s largest battery producers. Sila counts both of them as key customers and aim to target its silicon products for both these companies. They eye on to being the first vehicle of 2023 with highest gigawatt hours of capacity.
High demand for electric-drive vehicles is giving a huge scope to battery recycling market to expand enormously. Extensive use of battery recycling curbs hazardous materials to enter the waste stream. These batteries could be achieved with various approaches. One of them is smelting, in which, basic elements or salts are recovered. Now-a-days, these processes are able operate on large scale and accept multiple varieties of batteries which includes nickel-metal hydride and lithium-ion. Second one is Direct Recovery where some processes are able to recover battery-grade materials directly and all active metals and materials are recovered. The third process is a combination of first and second process where multiple kinds of batteries are recovered and recover materials further along the production chain than smelting does.
Unscrambling the diverse kinds of battery materials is often a stumbling block in process of recovering batteries that possess high-value materials. Hence, battery design that considers recycling and disassembly is significant in order for electric-drive vehicles to flourish from a sustainability standpoint. Standardization followed in batteries, cell design and materials is anticipated to ease down recycling process and enables higher cost reduction.
Key company profile in the Global Electric Vehicles Battery Market report are Hitachi, Sony, ATLASBX Co. Ltd., Narada Power Source Co., Ltd., TCL Corporation, Huanyu New Energy Technology, C&D Technologies, Inc., Duracell, Crown Battery Manufacturing, EnerSys, Inc., Panasonic, NEC Corporation, North Star, GS Yuasa Corp., BB Battery Co.
|Electric Vehicles Battery Market Scope|
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||US$ 4.98 Billion|
|Growth Rate||CAGR of 4.3% during 2022-2030|
|Segment Covered||by Battery Type, By Vehicle Type, By Propulsion, By Li-ion Battery Component, By Method, by Capacity, By Material Type, By End User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Hitachi, Sony, ATLASBX Co. Ltd., Narada Power Source Co., Ltd., TCL Corporation, Huanyu New Energy Technology, C&D Technologies, Inc., Duracell, Crown Battery Manufacturing, EnerSys, Inc., Panasonic, NEC Corporation, North Star, GS Yuasa Corp., BB Battery Co.|
Key segments of the Electric Vehicles Battery Market
By Battery Type, 2022-2030 (USD Billion)
- Lead-Acid Battery
- Lithium-ion Battery
- Sodium-ion Battery
- Nickel-Metal Hydride Battery
- Others Services
By Vehicle Type, 2022-2030 (USD Billion)
- Passenger Vehicle
- Commercial Vehicle
By Propulsion, 2022-2030 (USD Billion)
- Battery Electric Vehicle
- Plug-in Hybrid Electric Vehicle
- Hybrid Electric Vehicles
- Fuel Cell Electric Vehicles
By Li-ion Battery Component, 2022-2030 (USD Billion)
- Positive Electrode
- Negative Electrode
By Method, 2022-2030 (USD Billion)
- Wire Bonding
- Laser Bonding
By Capacity, 2022-2030 (USD Billion)
- <50 kWh,
- 50-110 kWh
- 111-200 kWh
- 201-300 kWh
- >300 kWh
By Battery Form, 2022-2030 (USD Billion)
By Material Type, 2022-2030 (USD Billion)
- Natural Graphite
By End User, 2022-2030 (USD Billion)
- Electric Vehicle OEMs
- Battery Swapping Stations
Region Overview, 2022-2030 (USD Billion)
- North America
- United States of America
- the Netherlands
- The United Kingdom
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- South America
Rest of South America