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Ev Battery Market

EV Battery Market

EV Battery Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:

100

Base Year:

2023

Date

Feb - 2024

Format:

PDF XLS PPT

Report Code:

VMR-1425

Segments Covered
  • By Battery Type By Battery Type Lithium-Ion, Solid-State, Nickel-Metal Hydride, Sodium-Ion, Others
  • By Propulsion By Propulsion BEV, PHEV, FCEV
  • By Battery Form By Battery Form Prismatic, Pouch, Cylindrical
  • By Vehicle Type By Vehicle Type Passenger Cars, Vans/Light Trucks, Medium & Heavy Trucks, Buses, Off-Highway Vehicles
  • By Material Type By Material Type Cobalt, Lithium, Natural Graphite, Manganese, Iron, Phosphate, Nickel, Others
  • By Battery Capacity By Battery Capacity <50 kWh, 50-100 kWh, 111-200 kWh, 201-300 kWh, >300 kWh
  • By Li-Ion Battery Component By Li-Ion Battery Component Positive Electrode, Negative Electrode, Electrolyte, Separator
  • By Region By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Snapshot
Base YearBase Year: 2023
Forecast YearsForecast Years: 2024 - 2032
Historical YearsHistorical Years: 2018 - 2022
Revenue 2023Revenue 2023: USD 147 Billion
Revenue 2032Revenue 2032: USD 475 Billion
Revenue CAGRRevenue CAGR (2024 - 2032): 14%
Fastest Growing Region Fastest Growing Region (2024 - 2032) North America and Europe
Largest Region Largest Region (2023): Asia Pacific
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
EV Battery Market Share

The global EV Battery Market is valued at USD 147 Billion in 2023 and is projected to reach a value of USD 475 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 14% between 2024 and 2032.

Key Highlights of EV Battery Market

  • The market was mainly led by the Asia Pacific region in 2023, accounting for 65.4% of the total market share
  • The North America and Europe are anticipated to observe significant growth during the forecast period
  • In 2023, the lithium-ion battery segment took the lead in the market, contributing a substantial revenue share, i.e., 69.2%
  • The Battery Electric Vehicle (BEV) segment significantly contributed to the market expansion, constituting over 70.2% of the overall revenue share in 2023
  • In 2023, the Passenger Cars segment played a crucial role in the market growth, representing the majority of the revenue share, i.e., 82.5%
  • According to a report, nearly 60% of the demand for lithium, 30% for cobalt, and 10% for nickel was for EV batteries in 2022
  • Automotive lithium-ion battery demand augmented in 2022 by approximately 65% to 550 GWh, from about 330 GWh in 2023, because of an increase in electric passenger car sales, with new registrations increasing by 55% in 2022 relative to 2021
  • In December 2020, the European Commission proposed a new Batteries Regulation (European Parliament 2022). This aims to ensure that batteries placed in the EU market are safe and sustainable throughout their whole life cycle
  • The Lithium-Ion Car Battery Recycling Advisory Group was formed to help the California Legislature select what to do with used electric-powered car batteries. Their main aim is to ensure that almost all of these batteries in the state get reused or recycled safely and without costing too much
  • The first act amending the Batteries Act was officially published in November 2020 and became effective in January 2021

EV Battery Market: Regional Overview

The Asia Pacific EV Battery market showed significant dominance in 2023, with 65.4% of revenue share. The Asia Pacific EV Battery market is experiencing significant growth, fueled by the region’s commitment to sustainable transportation and stringent emission regulations. India, China, and South Korea are dominant nations with major EV infrastructure and technology investments. Dominated by key players such as CATL (Contemporary Amperex Technology Co. Limited) in China and LG Energy Solution in South Korea, the market is witnessing robust developments in lithium-ion battery technology.

In China, there was a growth above 70% in the demand for vehicle batteries, while electric car sales increased by 80% in 2022 compared to 2021. The increase in battery demand was slightly affected by a rising share of Plug-in Hybrid Electric Vehicles (PHEVs). Additionally, in the past ten years, China government invested around $60 billion and $100 billion to boost the local market for lithium batteries. They provided subsidies for producing affordable electric vehicles (around $4,500) and supported companies in developing lithium mining and refining infrastructure. Consequently, China now holds a dominant position in the entire lithium battery market supply chain.

India has heavily counted on the international market to meet its electric vehicle components, particularly battery cells. To change this situation, NITI Aayog, the premier policy think tank of the GoI, has recently launched the National Programme on Advance Chemistry Cell (ACC) Battery Storage. This initiative aims to boost the local production of 50 gigawatt hours (GWh) of ACCs. According to NITI Aayog, ACCs are battery cells featuring advanced storage technologies capable of storing electric energy as chemical energy and converting it back to electric energy when needed.

U.S. EV Battery Market Overview

The EV Battery market in the United States, with a valuation of USD 10.2 Billion in 2023, is projected to reach around USD 59.9 Billion by 2032. This forecast indicates a substantial Compound Annual Growth Rate (CAGR) of 21.8% from 2024 to 2032. In 2022, the need for vehicle batteries in the United States surged by roughly 80%, even though electric car sales only increased by approximately 55%. Also, manufacturers adopt strategies to offer electric cars with longer driving ranges on a single charge.

EV Battery Market Size, 2023 To 2032 (USD Billion)

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The global EV Battery market can be categorized as Battery Type, Propulsion, Vehicle Type, and Region.

Parameter Details
Segments Covered

By Battery Type

  • Lithium-Ion
  • Solid-State
  • Nickel-Metal Hydride
  • Sodium-Ion
  • Others

By Propulsion

  • BEV
  • PHEV
  • FCEV

By Battery Form

  • Prismatic
  • Pouch
  • Cylindrical

By Vehicle Type

  • Passenger Cars
  • Vans/Light Trucks
  • Medium & Heavy Trucks
  • Buses
  • Off-Highway Vehicles

By Material Type

  • Cobalt
  • Lithium
  • Natural Graphite
  • Manganese
  • Iron
  • Phosphate
  • Nickel
  • Others

By Battery Capacity

  • <50 kWh
  • 50-100 kWh
  • 111-200 kWh
  • 201-300 kWh
  • >300 kWh

By Li-Ion Battery Component

  • Positive Electrode
  • Negative Electrode
  • Electrolyte
  • Separator

By Region

  • North America
    • U.S.
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • LG Energy Solution (South Korea)
  • Panasonic Holdings Corporation (Japan)
  • BYD Company Limited (China)
  • SK Innovation Co. Ltd. (South Korea)
  • Contemporary Amperex Technology Co. Limited (China)
  • Samsung SDI Co. Ltd. (South Korea)
  • Gotion Inc. (U.S.)
  • Mitsubishi Corporation (Japan)
  • Sunwoda Electronic Co. Ltd. (China)
  • EnerSys (U.S.)
  • Farasis Energy (Ganzhou) Co. Ltd. (China)
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
Pricing and purchase options Avail of customized purchase options to meet your exact research needs. Explore purchase options

EV Battery Market: Battery Type Overview

There was remarkable growth, with 69.2% in the Lithium-ion Battery segment in 2023. Based on the Battery Type, the EV Battery market is categorized into Lead-Acid, Lithium-Ion, Solid-State, Nickel-Metal Hydride, Sodium-Ion, and Others. The Lithium-ion Battery segment has experienced remarkable growth in the Global EV Battery market, fueled by the rising adoption of electric vehicles worldwide. This surge can be attributed to the superior energy density, longer lifespan, and enhanced efficiency of lithium-ion batteries compared to traditional alternatives. With governments and industries prioritizing sustainable transportation, the demand for EVs has soared, propelling the lithium-ion battery market. For instance, the reliability of LG Chem lithium-ion battery has been demonstrated in the automotive and Energy Storage Systems (ESS) sectors. The RESU series exhibits compatibility with a diverse array of inverters. The compact and lightweight design of the RESU facilitates convenient and swift installation, whether indoors or outdoors.

EV Battery Market: Propulsion Overview

In 2023, substantial expansion was observed in the global EV Battery market within the Battery Electric Vehicle (BEV) category, commanding a revenue share of 70.2%. The Propulsion segment is divided into BEV, PHEV, and FCEV. The Battery Electric Vehicle (BEV) segment is experiencing robust growth in the EV Battery market. With an increased focus on sustainable transportation and rising environmental concerns, BEVs have gained substantial traction. Advancements in battery technology, coupled with government incentives and growing consumer preference for zero-emission vehicles, contribute to the segment expansion. Key market players and other automotive giants invest heavily in BEVs, driving innovation and affordability. As charging infrastructure improves globally, the BEV segment is poised for continued growth, playing a pivotal role in the transformative shift toward cleaner and greener mobility solutions.

EV Battery Market: Vehicle Type Overview

In 2023, the global EV Battery market experienced significant growth, with a 82.5% share in the Passenger Cars segment. The Vehicle Type segment is segmented into Passenger Cars, Vans/Light Trucks, Medium & Heavy Trucks, Buses, and Off-Highway Vehicles. The Passenger Cars segment is witnessing remarkable growth in the Global EV Battery market, reflecting the escalating shift towards sustainable mobility. The government emphasis on reducing carbon emissions and advancements in battery technology are driving this surge. Additionally, governments worldwide are incentivizing the adoption of electric passenger cars, further propelling the segment expansion.

Top automotive manufacturers like Tesla, BYD, Volkswagen, Nissan, and BMW have been pivotal in this growth by introducing popular electric models like the Tesla Model 3, Nissan Leaf, and BMW i3. These vehicles showcase enhanced range, performance, and innovative features, influencing consumer preferences. Introduced by BYD in 2020, the Blade Battery represents a ground breaking advancement in battery technology, notably distinguished by its outstanding safety features. Remarkably, the Blade Battery emits no smoke or fire when penetrated, with surface temperatures maintaining a safe range of 30 to 60°C. This stands in stark contrast to ternary lithium batteries, which often exceed 500°C and violently combust, and conventional lithium iron phosphate block batteries, which reach hazardous temperatures ranging from 200 to 400°C. Such superior safety credentials firmly establish the Blade Battery as an ultra-safe choice for diverse applications.

Global EV Battery Market by Vehicle Type 2023

Key Trends

  1. Ongoing research and development in battery technology aimed at improving energy density, charging speed, and overall performance. Innovations like solid-state batteries and new cathode materials were gaining attention, driving the growth of the EV Battery market.
  2. Extension of manufacturing capacities for electric vehicle batteries to meet the growing demand. Companies are investing in building gigafactories to achieve economies of scale and reduce production costs.
  3. Growing emphasis on developing efficient and sustainable methods for recycling and repurposing used batteries. This addresses environmental concerns and helps recover valuable materials for reuse, boosting the EV Battery market growth.
  4. Governments around the world are enforcing rules, incentives, and regulations to inspire the adoption of electric cars, which in turn fuels the demand for EV batteries.
  5. Increased focus on expanding and improving the electric vehicle charging infrastructure to alleviate range anxiety and facilitate the widespread adoption of electric vehicles.

Premium Insights

Electric vehicle batteries are crucial in advancing cleaner transportation, contributing significantly to addressing climate change and enhancing environmental conditions. Lithium-ion batteries (LIBs) currently dominate the preference for Electric vehicle batteries, and this trend is anticipated to continue in the foreseeable future. It is imperative to prioritize proper life cycle management, encompassing repair, reuse, recycling, and disposal, to develop and integrate LIBs. Effectively handling EVBs throughout their usage and potential secondary life and ensuring responsible recycling at the end of their lifespan are critical considerations. These measures are essential for supporting the above-mentioned environmental goals and securing a sustainable supply of vital battery metals and minerals for EVBs and stationary storage systems in the long term.

Solid state batteries, though pricey, currently come at a premium of up to triple the cost per unit weight. Nevertheless, they compensate for this by offering three times the storage capacity and delivering three times the distance. According to Toyota, by 2027, its electric vehicles will achieve approximately 1,400km on a single charge. Moreover, because of the improved thermal management, solid state batteries will no longer be confined to an 80 percent limit during DC fast charging, unlike the present scenario.

Report Coverage & Deliverables

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Market Dynamics

The EV Battery market is experiencing robust growth driven by several key factors. The escalating demand for zero-emission vehicles is one of the primary drivers. As environmental concerns gain prominence, consumers and governments are gravitating towards cleaner transportation alternatives, propelling the adoption of electric vehicles. This surge in demand acts as a catalyst for the expansion of the EV Battery market. Additionally, the decrease in the price of EV batteries is essential in boosting the development of the global EV Battery market. Advances in technology, economies of scale, and augmented production efficiency contribute to decreasing costs, making EVs more accessible to a broader consumer base. This affordability factor is a major driver, encouraging wider adoption of electric vehicles and propelling the demand for EV batteries.

Technological advancements in battery systems, such as improved energy density and longer lifespan, contribute to global market growth. Also, the evolution of lithium-ion technology stands out as a prominent opportunity for the key players in the EV Battery market. Furthermore, governments globally are focusing on environmental sustainability and imposing regulations promoting electric mobility. Subsidies, incentives, and supportive regulatory frameworks create a conducive environment for developing the EV Battery market. Key players who align their strategies with these initiatives can unlock extensive growth potential. However, the strict regulations on lead pollution, fluctuations in raw material prices, and elevated import taxes on EV batteries might restrain market growth.

Competitive Landscape

Strategic collaborations and substantial investments mark the Competitive Landscape of the EV Battery industry. For instance, the joint venture between Honda and LG Energy Solution culminated in a $3.5 billion investment in a battery plant in Fayette County, Ohio. The commitment to create 2,200 jobs underscores the significant economic impact. With an anticipated total investment of $4.4 billion pending government approvals, such ventures reflect the industry dynamic nature and the key players efforts to secure a prominent position in the growing electric vehicle sector. Another instance includes EnerSys, which disclosed initiating a non-binding Memorandum of Understanding with Verkor SAS, a leading European entity in battery technology. This collaboration aims to investigate the potential establishment of a lithium battery gigafactory in the United States.

Considering the increasing need for electric vehicles (EVs), Panasonic Energy intends to boost its manufacturing capability for automotive batteries. The company will specifically target the North American market, leveraging its advanced high energy density battery technology and contributing to extended vehicle ranges. Also, Panasonic Energy has unveiled plans to build a new, expansive facility in Kansas, USA.

The key players in the global EV Battery market include - LG Energy Solution (South Korea), Panasonic Holdings Corporation (Japan), BYD Company Limited (China), SK Innovation Co. Ltd. (South Korea), Contemporary Amperex Technology Co. Limited (China), Samsung SDI Co. Ltd. (South Korea), Gotion Inc. (U.S.), Mitsubishi Corporation (Japan), Sunwoda Electronic Co. Ltd. (China), EnerSys (U.S.), Farasis Energy (Ganzhou) Co. Ltd. (China) among others.

Recent Market Developments

  • In Feb 2024, Panasonic Energy declared the finalization of a binding off-take agreement with NOVONIX Limited, a prominent battery materials and technology company. This agreement pertains to the supply of synthetic graphite, a key component in the anodes of lithium-ion batteries utilized in electric vehicles (EVs).
  • In Jan 2024, LG Energy Solution, in collaboration with KAIST, achieved a significant breakthrough in developing revolutionary next-generation battery technology. The collaborative effort resulted in the successful advancement of technology, leading to a remarkable enhancement in the performance of lithium-metal batteries.
  • In Jan 2024, SK On, a leading global EV Battery manufacturer, announced plans to enhance its collaboration with Solid Power, a U.S.-based forerunner in solid-state battery technology. This strategic move aims to expedite the progress of all-solid-state batteries (ASSBs).
  • In Jan 2024, LG Energy Solution, a prominent global manufacturer of advanced lithium-ion batteries, solidified its position in next-generation battery technology by investing in a promising U.S. lithium metal battery technology startup.
  • In May 2023, EnerSys®, a global leader in stored energy solutions, introduced the ODYSSEY® Connect battery monitoring system. This system utilizes proprietary technology to actively monitor and track various battery health and performance metrics for optimal operations, with data communicated via Bluetooth® to Apple® or Androidâ„¢ smart devices.
  • In May 2023, LG Energy Solution revealed plans to invest approximately KRW 7.2 trillion (USD 5.5 billion) in constructing a battery manufacturing complex in Queen Creek, Arizona.
FAQ
Frequently Asked Question
  • The global EV Battery valued at USD 147 Billion in 2023 and is expected to reach USD 475 Billion in 2032 growing at a CAGR of 14%.

  • The prominent players in the market are LG Energy Solution (South Korea), Panasonic Holdings Corporation (Japan), BYD Company Limited (China), SK Innovation Co. Ltd. (South Korea), Contemporary Amperex Technology Co. Limited (China), Samsung SDI Co. Ltd. (South Korea), Gotion Inc. (U.S.), Mitsubishi Corporation (Japan), Sunwoda Electronic Co. Ltd. (China), EnerSys (U.S.), Farasis Energy (Ganzhou) Co. Ltd. (China).

  • The market is project to grow at a CAGR of 14% between 2024 and 2032.

  • The driving factors of the EV Battery include

    • Increasing demand for electric vehicles

  • Asia Pacific was the leading regional segment of the EV Battery in 2023.