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Published- Jan 2020 Number Of Pages -94 2023 Update
Batteries are the “costliest” element of a battery electric car, representing 30-40% of the production price i.e. ~$10,000-$20,000 per car, depending on the vehicle segment and body type. And, thus, the growth in sales of electric vehicles has placed considerable emphasis on the Electric vehicle battery market.
Electric Vehicles (EVs) accounted for 2.3% share of global passenger vehicle sales in 2018, the number went up to 2.4% in 2019 due to declining auto sales globally.In 2020, EV sales jumped by ~43% to reach 3.24 Million units and accounted for 4.2% of the overall Passenger Vehicles volume in 2020.
By 2025, we believe the share can grow to as high as 8% of global auto sales(subject to change in future). The most important factor, deciding every EV growth forecast is the global electric vehicle battery capacity.
To know more about Global Electric Vehicle (EV) Solid State Battery Market, read our report
Covid brought about an increase in EV sales in Europe with more than a million plugged in vehicle sales and reaching their current goal of 10% market share of vehicle sales. China is also increasing its market share in electric vehicles over the past 3 years and the battery pack is increasing in size over the years
About 73% of EVs sold in 2018 and 77% of EVs sold in 2020 were BEVs (Battery Electric Vehicles), predominantly in China and US where BEV share was >77%, cumulatively accounting for 85% of global BEVs sold. By 2025, the BEV share could further go up and that will be directly co-related with the growth of global Electric Vehicle battery market as they account for much larger battery packs
To know more about Global EV Battery Management System Market, read our report
The company Grinntech, a producer of lithium-ion batteries for electric two wheelers has closed a funding round of nearly $2 million where all the existing investors participated
The company CATL, has increased the deployment of its Li-ion batteries to four quarters with 4800 tons. The company also successfully tested a liquid cooling battery energy storage system (BESS) which is based on the lithium ion phosphate (LFP), the technology has set to clear all the required tests.
In March 2021, LG Chem announced estimates to double the manufacturing capacity of batteries in China for Tesla. It will also delegate the increasing demand for Tesla’s Model 3 from factories in China and Korea to Tesla’s production units in Germany and USA.
In March 2021, Amara Raja Batteries, the second largest producer of automotive batteries in India, opened operations to develop Li-ion cells as its maiden technology center facility in Andhra Pradesh.
As of March 2021, Varta AG has received a public funding of EUR 300 million for its battery cell manufacturing facility (IPCEI). In June 2021, CATL and SAIC motor group launched the second phase of the advanced traction battery project for industrialization.
In April 2020, Samsung SDI announced the replacement of the liquid electrolyte with a solid electrolyte in the battery cells to improve battery performance.
Panasonic Corporation in collaboration for a new battery visualisation technique with Japan Fine Ceramics Center (FJCC) and Institute of Materials and System Nagoya University has introduced a technique to Visualize real time Li-ion battery dynamics in solid state batteries with a nanometer scale. The technique uses scanning transmission electron microscopy (STEM) and machine learning.
The all-new range of hundreds of EVs announced by traditional car manufacturers is the biggest growth driver of the global EV battery market. Many OEMs have announced extensive plans to launch cumulative 250+ BEV and PHEV models by 2025 and 100 models in 2022 alone.
VW (world`s 2nd biggest car manufacturer with 9.3M units sold in 2020) has plans to produce 1 million BEVs by 2025, if that holds true, VW alone would require battery capacity of 150 Gwh per annum. The Electric vehicle battery manufacturers predominantly use Lithium, Nickel, Manganese and the very expensive Cobalt in varying proportions, as per OEM`s power density requirement.
Volkswagen is increasing its stake in solid-state battery firm QuantumScape. It has additionally invested $ 200M in the US based battery firm. As the name suggests, solid-state batteries use a solid electrolyte, as opposed to the liquid electrolyte used in lithium-ion battery chemistry. The automaker wants its batteries to last the life of the car, so any development in the solid-state will be beneficial for the VW EV models.
The world market leader of EV batteries CATL uses prismatic cell formats using NMC (lithium nickel manganese cobalt oxide) chemistry, which have found significant application in Chinese EVs. Going forward, we believe Cobalt`s share will come down further due to cost constraints. Chinese manufacturers are already making EV batteries without Cobalt.
Among the risks associated with the Electric vehicle battery market are the growth of Mild and Plug in hybrid vehicles (smaller 9-17kWh batteries), fuel cell technology development in China, battery cell raw material availability and inconsistent EV promotional policies from local governments.
Tesla which has 17% share of global BEV market launched vehicles out of the Tesla factory in China, will have the German factory ready in the next 1.5-2 years as well as launching a new factory in USA which will produce BEVs with high battery capacities including the Cyber Truck and Semi. Tesla also launched Model Y which was among the top 5 most sold plugged in vehicle globally
Average EV-Battery prices have dropped from $1,100 per kilowatt-hour to $137 per kwh, decrease of 89% over the past decade. In 2020, battery-pack prices of less than $100 per kwh were also reported for the first time.
In February 2021, 75,680 Hyundai’s Kona Electric models, as well as 5,715 Hyundai Ioniq Electric models and 305 city buses were recalled to replace a faulty battery pack. The recall effort is expected to cost $900 million, which will make it the most expensive electric car recall ever.
Another important and often overlooked factor, which will determine the future of EV battery market is the growth of DC fast charger market We firmly believe, to support a faster BEV uptake “rapid expansion of DC fast charging is a pre requisite”. To know more about developments in DC fast charging, read our EV DC fast Charger Market report.
Automobile manufacturers such as Toyota, Ford, and Volkswagen have been racing to develop a next-generation battery to address the inadequacies of batteries that power electric vehicles.
Several companies are rallying around solid-state batteries, which do not include liquid electrolytes and may cost less, last longer, and be less prone to catching fire than the lithium-ion batteries currently in use.
By the second half of the last decade, automakers had spent millions of dollars improving the technology.
The competition takes place at a crucial time. Gas prices have risen dramatically, and local climate change has increased efforts to reduce greenhouse gas emissions, increasing demand for electric vehicles.
This has resulted in shortages of numerous minerals used in current electric-vehicle batteries, as well as moral concerns because they are typically mined by adults and children in hazardous conditions.
The EV Battery’s Future
There are a lot of new technologies on the horizon that might make owning and operating a zero-emission vehicle simpler. With battery packs that offer range between charges that only take a few seconds, and power that is available to you over the air, the problems of “range anxiety” and “long charging times” will soon be a thing of the past.
The manufacturers of electric vehicles are aware that Americans want more range and faster charging times in order to put an EV in every garage. They are fully aware of the restrictions placed on the present lithium-ion batteries used to power EVs. Battery packs have been the weak link up to now in the power-saving chain while computer chips and operating systems continue to progress.
Let’s look at some study that could result in an innovative new universe of battery technology for the electric cars of the future.
Electric vehicle batteries as structural elements:
The use of cutting-edge battery technology as a structural component of upcoming electric cars has been the subject of research at Chalmers University of Technology. This might result in lighter cars whose body components serve as the batteries. These batteries’ structural components would be incredibly robust and unyielding due to the use of carbon fiber as the negative electrode and lithium iron phosphate as the positive electrode.
Non-Cobalt Batteries
The University of Texas is developing a cobalt-free cathode for a lithium-ion battery. Instead, it makes use of aluminum, manganese, and up to 89 percent nickel. The reason behind this is that cobalt is expensive, difficult to obtain, and scarce. The U of T team claims that its batteries also provide a more tasteful dispersion of ions.
Cobalt-free batteries are created by a Chinese business called SVOLT for the EV market. According to its claims, they offer a higher energy density, which enables a vehicle’s range to reach up to 500 miles on a single charge.
Batteries with silicon anodes
Researchers at the University of Eastern Finland have created a process to create a hybrid anode that employs mesoporous silicon microparticles and carbon nanotubes as a remedy for unstable silicon in lithium-ion batteries. They intend to switch from using graphite as the anode to using silicon, which has 10 times the capacity. The intention is to enhance battery performance. The best part is that this silicone was produced using environmentally friendly barley husk ash.
Never-Dead Batteries
Researchers at the University of California are developing unbreakable nanowire batteries. The gold nanowires are 1,000 times smaller than a human hair and are submerged in an electrolyte gel to prevent them from disintegrating during recharge. Over a three-month period, they were examined for recharge, and they displayed no signs of degradation.
Battery Types: Solid-State
Solid-state batteries have historically provided stability but at the expense of electrolyte transfers. To make a better battery that can function at super capacitor levels and charge in just seven minutes, researchers at Toyota are testing a solid-state battery that employs sulfide superionic conductors. Additionally, it is safer than current battery solutions because it is solid-state.
Sulfide-based all-solid-state cells are used by Solid Power Inc. to create solid-state batteries for EVs. For Volkswagen, QuantumScape is creating solid-state batteries in the meantime.
In passenger vehicle segment, China accounted for ~40% of global EV sales in 2020 and ~64% of global EV battery demand, due to high volume of BEV buses, which sold almost 100k units in 2017, 2018 but declined to 81k units in 2019 which decreased again in 2020 to 70k.
Europe had more than a million plugged in vehicle sales in 2020 which was a 100% increase compared to 2019. The trend is on a rise and will keep going on for the coming years supported by subsidies and EuroNCAP.
To ramp up the Li-ion batteries production in the Europe region, the European Battery Alliance is investing about $ 24B in 12 member states for various training programs to produce skilled workers. The goal is to reduce the dependence on US and Chinese battery manufacturers.
CATL had said that the Chinese EV manufacturers are still the main suppliers for the European projects and will take time for European suppliers to replace Chinese ones. In Europe, battery capacity construction cycle is relatively long, construction and operative costs are high leading to a creative supply chain every time.
With demand for lithium rising quickly, one can foresee increase in lithium prices. However, in terms of supply outlook a deficit in lithium supplies within the next 12–18 months is predicted.
Unlike other battery minerals, the market for nickel is much bigger, with very little of the demand coming from batteries. The main demand growth for nickel will come from the battery market over the next five years.
Going forward, the EV battery market will receive a boost from Toyota (world`s #1 seller of electrified vehicles) as it recently announced its plans to launch multiple BEVs in next 2 years.
GM has announced 30 vehicles by 2025 and are retooling their Detroit-Hamtramck plant for EV manufacturing. Volkswagen launched ID 3 based off MEB platform which will also have multiple vehicles on the same platform. Ford will also be utilising the MEB platform for some of their vehicles.
In January 2021, 2 new Lithium Battery manufacturing plant will be set up in Karnataka India with the objective of promoting electric vehicles. The two units, one will be established in the Hubballi region and another will be set up near Chikkaballapura.
VW scales up process for recovering raw materials from used EV batteries. The Salzgitter plant in Germany can recover up to 95% of raw materials from a battery pack for potential reuse, including lithium, nickel, cobalt, and manganese.
VW follows a method which involves disassembling used battery packs, retaining any usable cells, and shredding the rest. This results in a sludge of metals and the liquid electrolyte, which is then drained away. The remaining dry granules of material are then sifted and sorted. Salzgitter plant can produce up to 3,600 battery packs a year.
GM has announced it is working on an almost completely wireless battery management system for production of EVs. The space and weight saved by removing up to 90% of the wiring will also enable GM to pack more batteries into a vehicle, thereby improving range.
The vehicle will be powered by GM’s Ultimum Batteries produced at Ohio Plant in partnership with LG Chem. Unlike traditional battery modules, GM’s new system features RF antennas integrated on circuit boards. The antennas allow the transfer of data via a 2.4-gigahertz wireless protocol similar to Bluetooth but with lower power.
China, world’s biggest electric vehicle market alone had EV battery manufacturing capacity of 55GWh in 2018 and 62 GWh in 2019 and is expected to grow at 20+% CAGR till 2025. To know more about Chinese market read our EV battery market in China report. The production volume from Europe alone is expected to be at 112 GWh in 2023.
In the Commercial vehicle segment, electric transit bus and light commercial vehicles (for last mile distribution) will be the most important EV applications.
The battery capacity of electric transit buses is typically in the range of 250-350kWh (equivalent to 4-5 long range BEVs). The global public transit bus market is estimated at 0.8-0.9 Million units per annum. Assuming a minimum 30% electrification by 2025 could create an additional EV battery demand of 75-90Gwh alone.
The global electric vehicle battery market was estimated at 108 Gwh in 2019 and $16.1 Billion , growing at 21% CAGR till 2025.
The overall production, manufacturing and sales of vehicles plummeted due to the COVID-19 pandemic across the globe, the effect on electric vehicles was considerably positive as compared to other sectors in the automotive industry.
The total number of electric vehicles sold in the year 2020 was more than the previous year indicating a positive effect. However, components such as the electronic ICs, PCBs and battery systems were negatively affected due to the halt in electronic manufacturing units.
The share of the global electric vehicle market incremented from 2.5% in the year 2019 to 4.2% in the year 2020. With almost 1.4 million plug-in electric vehicles sold in 2020 in Europe which was a whooping 137% more than the year 2019.
The growth was due to the incentives provided in Europe such as; incentives for green recovery funds, the CO2 95g emission mandate as well as the intense promotion for EVs. The market of China recovered fairly quickly, with a growth rate of more than 80% in the second half of the year 2020 from July to the end of December. This sale saw an increase in the US by 4% in spite of the launch of Tesla’s Model-Y.
Due to the COVID-19 pandemic, countries across the globe imposed lockdown which has greatly impacted the production of battery components for electric vehicles. The electric vehicle battery manufacturers saw a reduction in the first quarter of 2020; however, the revenue increased by the third quarter as the restrictions were relaxed.
The sales revenue of the company Samsung SDI for the Li-ion battery sector fell by 18.8% as compared to the quarter of the year 2019, decreasing the net profit of the company by 33.1% in this sector.
The company Panasonic saw a significant reduction as the demand for China as well as the investments decreased. The company’s sales were reduced by 6% by March of 2020 and the operating profit reduced by 29%.
Even though the revenue of many key battery manufacturers were reduced due to the pandemic, the overall EV battery market saw a steady recovery by the end of 2020. Future new product developments and supply contracts are the primary reasons for this recovery and for the further growth of this market.
The DOE’s Advanced Research Projects Agency-Energy (ARPA-E) oversees the EVs4ALL programme. ARPA-E chose the following 12 teams from universities, national laboratories, and the corporate sector to address and remove critical technological impediments to EV adoption through the development of next-generation battery technologies:
BYD has officially launched the Blade Battery, which is designed to address concerns regarding battery safety in electric vehicles.
BYD’s commitment to resolving battery safety challenges while simultaneously redefining industry safety standards is shown in the Blade Battery.
BYD showed a video of the Blade Battery completing a nail penetration test, which is considered the most challenging way to evaluate a battery’s thermal runaway due to its difficulties. BYD’s Blade Battery has obvious advantages in terms of battery safety and energy density.
BYD has been working on the Blade Battery for a number of years. Individual cells are stacked in an array before being put into a battery pack. When compared to conventional lithium iron phosphate block batteries, the space utilisation of the battery pack is boosted by over 50% due to its optimised battery pack construction.
The electric vehicles from General Motors will be powered by the company’s Ultium battery architecture, a cutting-edge battery technology. Higher energy efficiency, quicker charging periods, and reduced costs are just a few of the main benefits the new battery is anticipated to have over earlier GM battery versions.
The greater energy efficiency of the Ultium battery platform is one of its main advantages. As a result, the battery can hold more energy in the same quantity of space, enabling GM to produce EVs with greater efficiency and range.
According to the size and power needs of the car, the Ultium battery can be adjusted up or down because it is intended to be modular. Fast recharge is yet another crucial aspect of the Ultium battery. GM claims that a DC fast converter can power the battery to 80% of its capacity in just 40 minutes. The ability to rapidly charge their EVs and resume driving will be made simpler for owners.
Finally, compared to earlier GM battery versions, the Ultium battery is anticipated to be more affordable. GM hopes to lower the cost of manufacturing the battery while still maintaining its high performance and quality by utilizing novel manufacturing methods and materials. In general, GM’s Ultium battery technology is a significant advancement as it tries to fight in the quickly expanding EV market.
A major advancement in the field of electric vehicle (EV) batteries is the new lithium iron phosphate (LFP) battery from LG Energy Solution. Compared to conventional lithium-ion batteries, which are frequently used in EVs, this new battery is made to have a lengthier lifetime and greater safety. The LFP battery’s extended lifetime is one of its main benefits.
When lithium-ion batteries are regularly charged and discharged, they are more likely to deteriorate over time. In EVs, this decline may result in a decrease in range and efficiency. The long cycle life of LFP batteries, on the other hand, means that they can be charged and drained repeatedly without significantly degrading.
LFP batteries are renowned for both their safety and their extended lifetime. LFP batteries are renowned for both their safety and extended lifetime. Thermal runaway is a condition where lithium-ion batteries can become overheated and catch fire or detonate.
Because LFP batteries use a distinct chemistry that is less prone to overheating, they are more immune to thermal runaway. In terms of EV batteries, the new LFP battery from LG Energy Solution is a major advancement. LFP batteries could contribute to EVs becoming more dependable and affordable for customers by having a longer lifespan and a better level of safety.
NAWA Technologies has developed and patented an Ultra Fast Carbon Electrode that has the potential to replace batteries as we know them. This employs a vertically oriented carbon nanotube, which can increase battery power tenfold over present battery packs. It can also boost energy storage by a factor of three and a battery’s longevity by a factor of five. According to NAWA, charging time will be only five minutes to reach an 80 percent charge. This technology could be in use as early as 2023.
SVOLT, a Chinese business, is producing cobalt-free batteries for the EV industry. They claim to have a higher energy density, which translates to a vehicle range of up to 500 miles on a single charge.
IBM Research has developed a heavy metal-free battery chemistry that outperforms lithium-ion batteries. Seawater is used to remove the materials. According to IBM, these batteries will be less expensive to produce, charge faster, and have a higher energy density and power. The company is actively developing the technology in collaboration with Mercedes-Benz.
Researchers at the University of California, Riverside are developing a battery technique that uses sand to make pure silicon, allowing it to operate three times better than current graphite-based lithium-ion batteries. This new pure silicon also improves battery longevity.
Silnano, a battery startup, is bringing this technology to market with backing from Daimler and BMW, predicting a 40 percent increase in battery performance in the near future.
StoreDot, a start-up business founded by Tel Aviv University’s nanotech department, has invented a charger that employs biological semiconductors. Organic peptide molecules, which are the building blocks of proteins, are used in these. As a result, the charger can recharge your smartphone in just 60 seconds, and the organic compounds are non-flammable, allowing for safer charging. StoreDot is currently developing batteries for electric vehicles that will charge in five minutes and have a range of 300 miles.
Researchers at Sydney University have discovered a way to produce zinc-air batteries at a fraction of the cost of current approaches. Because they do not catch fire, zinc-air batteries outperform lithium-ion batteries. The issue has been that zinc-air batteries are built with pricey components, but the University has discovered a way to employ far cheaper alternatives. As a result, cheaper and safer batteries may be on the way shortly.
Graphenano is working on a graphene battery that it claims will have a range of 500 miles and can be recharged in a matter of minutes. According to the business, its batteries charge and discharge 33 times faster than lithium-ion batteries.
Ample also plans to expand its firm to Europe, by partnering with Uber.
Several companies are introducing new business models such as battery-as-a-service (BaaS) and battery swapping; it allows the customers to swap/change batteries for their EVs once the originals are discharged. This model saves time consumed on recharging which in turn improves the satisfaction of customers and provides additional incentive to purchase EVs.
A chinese battery manufacturer for EV, NIO, has started the implementation of the BaaS model decoupling the battery from EV. Panasonic and Toyota have announced the joint venture of producing battery packs for EVs.
As of March 2020, Samsung SDI has acquired an addition of 15% shares in the Samsung SDI-ARN power battery company (SABP) . It is now the majority stakeholder with the ownership of 65% in the company.
Microvast has partnered with Gaussin power to introduce state-of-the-art modular battery packs with varieties of cell chemistry and has expanded into the French E-Bus market. The company has also entered into a joint development agreement with Oshkosh Corporation to facilitate battery innovation and collaboration for the future, where Oshkosh will invest $25 Million.
The USABC (United States Advanced Battery Consortium LLC) has announced a $4.5 million contract to the company as part of the development project for low-cost fast-charge batteries for EVs.
Most of the electric vehicle battery manufacturers are trying to improve the energy density (Wh/kg)-the global average is 250Wh/kg at present) in the immediate future to further increase range (miles driven per charge). The safety aspects of various battery chemistries are also being looked into along with energy density
CATL, with the highest electric vehicle battery market share globally, claims to have reached levels of 304Wh/kg as of June 2019, whereas BYD and Tesla are still in the range of 240-260Wh/kg.
CATL, LG Chem & Panasonic were the top 3 EV Battery producers in 2020. These 3 cumulatively account for ~65% of the market share.
To get EVs to a price point where they can be compared with ICE powered vehicles, the energy density of EV batteries should be in the range of 400-450Wh/kg.
Various NMC chemistries are being tested such as 811, 622 and 111 with the 1st digit being the parts of Nickel, 2nd Manganese and 3rd Cobalt. Though more plants can increase production which will bring down the price of an EV battery, the setting up of a battery plant is an expensive affair especially the Dry Room, which is a moisture-controlled environment.
