As the world advances toward technological advancements, many positive changes are taking place. Environmental conservation remains an essential aspect of every region and country across the globe. The smoke emitted through petrol or diesel vehicles is very harmful to the environment and is causing great distress. To minimize pollution levels, electric vehicles (EVs) are emerging as the best option.
One of the most critical components of EVs is the lithium-ion battery. These batteries are essential for the overall functioning of the vehicle. Thus, all these aspects will be fruitful for the growth of the lithium-ion battery market during the assessment period of 2019–2027.
Lithium-ion batteries can be formed using different materials as electrodes. Some common combinations are lithium cobalt oxide and graphite, lithium manganese oxide and lithium iron phosphate, etc. Lithium cobalt oxide and graphite are used extensively for portable electronic devices such as laptops and smartphones. All these factors bode well for the growth of the lithium-ion battery market.
Transparency Market Research (TMR) has a brilliant team of experts and analysts who conducted meticulous research on every factor related to the growth of the lithium-ion battery market. Each element was scrutinized and was further compiled in the report for the benefit of the stakeholders. TMR projects the lithium-ion battery market to expand at a CAGR of ~11 percent across the assessment period of 2019–2027. The global lithium-ion battery market is estimated to reach a value of ~US$ 41.5 bn by 2027.
The demand for lithium-ion batteries is expected to grow with the rising efficiency levels and decreasing cost levels. The overwhelming adoption of the latest electronic gadgets and a boost in the sales of electric vehicles (EVs) will have a significant impact on the growth of the lithium-ion battery market.
Affordability Playing a Crucial Role in the Growth of the Lithium-Ion Battery Market
Intense research and development activities have contributed extensively to the growth of the lithium-ion battery market. In the past 10 years, the cost of lithium-ion batteries has been lowered by almost 80 percent. This factor helps in the speedy adoption of lithium-ion batteries on a massive scale, ultimately sowing the seeds of growth.
Hybrid Vehicles to Boost the Growth Prospects of the Lithium-Ion Battery Market
With the rising awareness among many individuals about reducing carbon emissions, the sales of electric vehicles and hybrid electric vehicles are increasing at a rapid rate. The popularity of hybrid cars is thriving, especially among the Gen-Z and the millennial category. This vehicle type powers the electric motor through batteries and uses fuel or gasoline for the internal combustion engine. The prominence of these vehicles is accelerating the growth of the lithium-ion battery market substantially.
Profitable Government Initiatives to Lay the Foundation of Growth
The government bodies of numerous countries are promoting various initiatives linked to decarbonization and curbing of pollution levels. Developing economies like India and China, with rich natural resources and vast spaces for setting up manufacturing capacities, are focusing on switching reliability from fuel-powered vehicles to electric vehicles and the components linked to them. These factors will help in increasing the growth rate of the lithium-ion battery market.
Some Prominent Government Initiatives that will Impact the Growth of the Lithium-Ion Battery Market
- The Indian Government recently launched a production-linked incentive (PLI) scheme of nearly Rs. 18,000 crores to encourage export, storage, and manufacturing of lithium-ion cells. This scheme has the potential to attract investments from large conglomerates such as Toshiba and Panasonic. Thus, all these aspects bring positive growth prospects for the lithium-ion battery market.
- President Biden-led U.S. Government has set a goal of achieving carbon neutrality by the year 2035. The U.S. Government is replacing the government’s fleet with electric vehicles and investing in more than 45000 EV charging stations. All these factors will have a large impact on the growth of the lithium-ion battery market.
Recommended Steps to Propel the Growth of the Lithium-Ion Battery Market
- The government bodies of numerous countries should focus on developing recycling technologies to reuse and extract the main components in the batteries.
- The players in the lithium-ion battery market should strengthen their logistics for providing efficient and seamless delivery of batteries to all the clients.
- A holistic approach of lithium-ion battery manufacturers to reduce cost, enhance product efficiency, and battery performance.
- Government and non-government organizations should accelerate the funding initiatives across leading lithium-producing countries like Australia and Chile.
Recent Developments across the Lithium-Ion Battery Market
Developments play a significant role in the growth of the lithium-ion battery market. New product launches, expansions, and production expansions have a large role in the growth of the lithium-ion battery market. Some of the major ones are as follows:
- Ganfeng Lithium, a Chinese lithium producer recently signed an MoU with Argentina’s Mining Ministry to set up a lithium-ion battery factory.
- Magnis Energy Technologies has produced the first lithium-ion battery dry cells.