The electric vehicle (EV) battery market size was valued at USD 60.1 billion in 2022 and is expected to grow at a CAGR of 19.8% by 2032. According to a new report from market research company Brainy Insights, the market will experience rapid growth due to increasing climate change concerns driving the adoption of electric vehicles during the forecast period.
To learn more or download a sample of the report, click here.
Rechargeable batteries are used to power the electric motors of battery-operated vehicles (BEVs) or hybrid EVs (HEVs). These batteries are referred to as EV batteries (EVs) or traction batteries (HEV). Lithium-ion batteries are frequently made with high electric charge (or energy) capacity. Deep-cycle batteries differ from starting, lights, and ignition (SLI) batteries because they supply power for prolonged periods.
Smaller batteries are favored because they increase performance while reducing vehicle weight. Electric car batteries are distinguished by their relatively high power-to-weight ratio, specific energy, and energy density. The majority of today’s battery technologies have substantially lower specific energies than liquid fuels, which frequently affects the cars’ maximum all-electric range.
Market drivers
Most governments are looking for alternative energy sources to reduce import costs and fiscal deficits as a result of rising fuel prices. Governments are also working to keep their worldwide pledges to cut emissions to protect the environment for future generations.
Given the current environmental situation, encouraging the use of EVs by making them affordable, accessible, and effective to produce and acquire seems to be a suitable way to help people with their financial situation and environmental goals. Therefore, the increasing demand for electric vehicles will bode well for the global EV battery market’s growth during the forecast period.
A couple additional points:
- Rising demand. Demand for EVs is growing as environmental concerns about conventional vehicles continue to increase. As a result, governments globally are supporting the use of alternative fuel vehicles. EVs, are zero-emission vehicles gaining worldwide popularity for environmentally beneficial public transit. Several national governments offer financial incentives, such as tax exemptions and subsidies, refunds, reduced parking/toll charges for EVs, and free charging, to encourage the usage of EVs.
- Battery-as-a-service (BaaS). Several organizations are developing business models that enable consumers to change or exchange EV batteries once they have been depleted, such as battery swapping and battery-as-a-service (BaaS). This reduces user time spent on battery recharging, increasing customer happiness and removing one of the critical barriers preventing consumers from choosing EVs. Battery swapping at EV charging stations has become more popular as it saves EV customers time from having to charge their batteries. This is expected to provide growth opportunities for the market over the forecast period.
Challenges
- Cost. EV production has been a significant barrier to their broad acceptance. The cost of buying electric hatchbacks, crossovers, or SUVs is likely to decrease to reach the levels of ICE vehicles due to the anticipated decline in battery prices and decreased R&D expenses, which will increase demand for EVs. Due to the high cost of the rechargeable lithium-ion batteries needed for these vehicles, the cost of EVs is much higher than that of ICE vehicles. Due to the high cost of raw materials, including cobalt, nickel, lithium, and magnesium, the cathode price significantly impacts battery prices.
- Safety. Most cobalt extraction plants are in China and the Congo. Together, the two nations extract between 70 and 80 percent of the world’s cobalt mine. This raises the possibility of a cobalt supply disruption in the event of any unpredictability in these nations. Of all the battery raw materials, cobalt now poses the most procurement risks. This is because of the anticipated dynamic increase in demand and any ensuing supply limitations.
Batteries
The battery type segment in this report is divided into lead-acid, lithium-ion, nickel-metal hydride, sodium-ion, and solid-state. The solid-state segment dominated the market, accounting for around 22.6% of global revenue.
A Li-ion battery with a liquid electrolyte solution has a lower energy density than a solid-state battery. Due to the shallow fire risk, this battery may be manufactured very small to conserve space. Compared to lithium-ion batteries, a solid-state battery can significantly increase the energy density per unit area.
The bonding segment is divided into laser and wire. The laser segment dominated the market, with a market share of around 63% in 2022. Since laser-welded bonds can withstand higher currents and have advantages like narrow welds, quick welding, and low heat, which are crucial for battery tab welding because the chemicals inside batteries are heat sensitive, this market segment is predicted to increase during the forecast period.
The battery capacity segment is divided into <50 kWh, 50-110 kWh, 111-200 kWh, 201-300 kWh, and >300 kWh. Over the forecast period, the 50-110 kWh segment is expected to grow at the fastest CAGR of 23.3%. The amount of battery capacity used typically relies on how the EV fleet develops and the required battery capacity per car, typically above 50 kWh for BEVs and 12 kWh for PHEVs, respectively.
As a resuly, major EV market companies have installed 50–110 kWh of battery capacity to remain competitive. For instance, the battery capacities of the Tesla Model S, Model X, Model 3, and Chevrolet Bolt EV all range from 50 to 110 kWh.
Noteworthy developments
- In July 2022, Samsung SDI started constructing its second battery manufacturing facility in Seremban, Malaysia. In 2024, this facility will begin making cylindrical PRiMX 21700 batteries. The corporation will make 1.4 billion USD in investments up until 2025. Most applications for the batteries produced at the plant will be electric cars (EVs), micro-mobility, and other uses.
- In June 2022, Contemporary Amperex Technology Co., Ltd. and Heilongjiang Transport Development Co., Ltd. joined forces, according to Heilongjiang Transport (CATL). Both parties are researching how they might work together in heavy truck battery charging and swapping, online ride-hailing cab battery swapping, cruising cab battery switching, and solar power.
Filed Under: Batteries, Technology News