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Electric Vehicle Battery Market will exhibit a CAGR of 6.6% during the forecast period, and reach USD 82.20 billion by 2027, and the Market value as per 2019 was USD 71.83 billion.

Fortune Business Insights™ in a new report, titled, “Electric Vehicle Battery Market Size, Share & Industry Analysis, By Type (Lead Acid Battery, Nickel-Metal Hydride Battery, Lithium-Ion Battery, Others), By Vehicle Type (PHEV, BEV, HEV), and Regional Forecasts, 2019-2026.”

Electric Vehicle Battery Market Drivers and Restraint:

Falling Price of Lithium-Ion Batteries to Augment Growth

Currently, the primary source of power for EVs is lithium-ion batteries. According to a study published by the U.S. International Trade Commission in 2018, lithium-ion batteries account for more than 70% of the rechargeable battery market. Additionally, the battery costs per kilowatt-hour (kWh) have declined to less than 200 USD in 2019 from around 1000 USD in 2010. Moreover, owing to the advancement of the battery pack manufacturing techniques and cell chemistry, battery costs are likely to decline below 100 USD/kWh by the end of the forecast period. Hence, a reduction in the prices of battery packs which are responsible for around 35% to 45% of EV manufacturing costs are expected to drive the growth of the market.

Stringent Emission Regulations to Fuel Adoption of Electric Vehicles

Electric vehicles hold a significant emission advantage over the conventional internal combustion engine vehicles attributed to the lack of transit-related emissions and the potential to utilize and develop renewable energy resources.

Furthermore, increasing awareness regarding climate change has compelled policymakers to implement stringent fuel economy regulations and actively promote the development of electric vehicles via initiatives such as incentivizing cell manufacturing for batteries. Hence, vehicular emission concerns are anticipated to propel the adoption of EVs which would boost the growth of the market of electric vehicle battery.

RESTRAINING FACTORS

Scarce Material Supply and Lack of Charging Infrastructure to Limit Adoption

Several minerals are necessary to store and utilize electricity as fuel such as manganese, cobalt, nickel, graphite, and rare-earth elements such as neodymium for which the supplies are geographically concentrated and substitutes are non-existent or limited. The growing demand for EVs is likely to lead to a short-term supply crunch for these essential battery components.

Furthermore, the lack of charging infrastructure is also a hurdle for the widespread adoption of EVs, particularly in emerging economies such as India. Additionally, the cost of installation is high and cost-efficiency for consumers to charge their vehicles is also not at the required level. Hence, the supply chain risks and the lack of charging stations are likely to restrain the growth of this market.

List of Key Players Covered in the Electric Vehicle Battery Market Report:

  • GS Yuasa International Ltd. (Kyoto, Japan)
  • BYD Company Ltd. (Shenzhen, China)
  • LG Chem (Seoul, South Korea)
  • Tesla (California, US)
  • Panasonic Corporation (Osaka, Japan)
  • Samsung SDI CO., LTD (Seoul, South Korea)
  • Hitachi Chemical Co., Ltd. (Tokyo, Japan)
  • Contemporary Amperex Technology Co., Limited (CATL) (Ningde, China)

 To gain more insights into the market with a detailed table of content and figures, Click Here: https://www.fortunebusinessinsights.com/industry-reports/electric-vehicle-battery-market-101700

 Some of the key industry developments in the Electric Vehicle Battery Market Include:

  • March 2020 – BYD officially launched the new Blade Battery for EVs that optimizes the battery pack structure by over 50%, as compared to the conventional lithium iron phosphate batteries. It also exponentially increases the battery safety.
  • February 2020 – LG Chem partnered with the U.S.-based luxury EV company, Lucid Motors to supply cylindrical batteries for its EVs from the second half of 2020 up to 2023.
  • December 2019 – LG Chem established a joint venture with General Motors for electric vehicle batteries with mass production expected to begin in 2023 in a new manufacturing plant in Ohio.

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