Major players in the batteries of the electric vehicle market are Panasonic Corporation, Mitsubishi Motors Corporation, Beijing Pride New Energy Battery Technology Co., Ltd, Automotive Energy Supply Corporation, BYD Company Ltd, Daimler AG, Robert Bosch GmbH, SAMSUNG SDI CO, Tianneng Power International Co., Ltd, and Johnson Controls.
The global electric vehicle batteries market is expected to decline from USD 23.17 billion in 2019 to USD 22.24 billion in 2020 at a compound annual growth rate (CAGR) of -6.17%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and reach USD 35.36 billion in 2023 at a CAGR of 16.71%.
The electric vehicle batteries market consists of sales of electric vehicle batteries. Electric vehicle batteries are used to power electronic vehicles and are rechargeable in nature. These batteries support the clean energy initiative as they don’t emit any harmful gases which cause damage to the environment.
The Asia Pacific was the largest market in the electric vehicle batteries market in 2019.
The charging of Electric vehicle batteries using Vehicle grid technology is expected to gain traction in the EV batteries Market. Vehicle to grid technology is a Bi-directional charging system technology in which plug-in electric vehicles like battery electric vehicles (BEV), plug-in hybrids (PHEV), or hydrogen fuel cell electric vehicles (FCEV) batteries’ can communicate with the power grid for either returning electricity to the grid, to homes during the peak times or increase their charging rate to discharge and charge the battery accordingly. The new vehicle released by the Nissan along with ENEL X the Nissan leaf in October 2017 in Japan for the model year 2018 uses Vehicle to grid Technology which can be used to power the home during times of need or push back energy to the grid that is to sell the electricity to the gird. Thus, Vehicle grid technology is anticipated to be a major trend in the electric battery market.
The EV batteries the market covered in this report is segmented by battery type into lithium-ion, lead-acid, nickel-metal hydride, sodium-ion, others, and by vehicle type into passenger vehicles, commercial vehicles.
The extraction of raw materials like lithium cobalt used in the electric vehicle battery has a harmful effect on the environment and governments impose restrictions on mining the raw materials, hindering the growth of the market. The extraction process of one ton of lithium requires 50,000 gallons of water. Lithium mining has resulted in the consumption of 65% water of the Salar de Atacama region, Chile, which has led to water shortages in Chile, South America along with severe toxic spills. As the demand upsurges, the mining activity also rises with increasing damage to the environment and will force the governments to enforce stringent regulation to curb the negative effects which would increase the production cost. Therefore, the harmful effect of electric vehicle batteries on the environment is expected to be a hindrance to the electric vehicle battery market over the coming years.
In May 2019, Tesla, the American based clean energy and electric vehicle company have acquired San-Diego based batteries and ultra-capacitor maker Maxwell technologies for USD 235.0 million. This Deal gives Tesla access to the patented technology of Maxwell-the dry cathode technology, which would allow Tesla to develop its own set of battery cells with high density and durability. Maxwell technologies are considered to be the pioneers in the area of supercapacitors, their dry battery electrode technology is projected to improve the battery energy capacity by 50.0%, which in effect will double the battery life.
Advances in electric vehicles (EV) batteries and their associated technologies are attracting the interests of individuals to purchase EVs, contributing to the growth of the EV batteries. Recent advancements such as lithium-ion batteries, fast charging, and better mileage have helped electric cars become more passenger-friendly. According to the United States Department of Energy, the range of average electric car has increased to 171% in 7 years which was 73 miles in 2011 to 125 miles in 2018. Moreover, technological developments are contributing to reduced prices of electronic batteries. According to the Bloomberg report, battery prices that were above USD 1,100 in 2010 have fallen by 87% to USD 156 per kilowatt-hour in 2019 and is likely to decline to USD 100 per kilowatt-hour by the end of 2023. Therefore, the advances in electronic battery and its associated technologies increase the vehicle’s mileage and draw more customers driving the electronic battery market.
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Ankur Gupta, Head Marketing & Communications