Tag: EV Battery

The global EV battery market is expected to witness sustainable growth (CAGR of 16%) from 2020 to 2025 due to the rising demand for electric vehicles across the world. The continuous rise in the adoption of electric vehicles due to the COVID-19 pandemic and the high fuel prices has increased the need for new technology development across the electric vehicle battery market. A startup EV battery manufacturer QuantumScape, funded by the likes of Volkswagen, has raised USD 1.5 billion intending to manufacture low-cost batteries that could lead to electric vehicles with significantly longer ranges, are safer to operate, boast longer lifespans and support faster charging. Rather than using the industry-standard mixed-metal cathode as the separator, QuantumScape has developed a solid ceramic separator. The battery is manufactured without the anode and the electrolyte making it more compact, more energy-dense, and safer to operate. When the battery is charged and discharged, the lithium metal moves through the separator and creates a thin layer of a lithium-metal anode. By using this battery, an electric vehicle could charge to 80% of capacity in 15 minutes compared to the conventional hour-long charging times.

Another EV battery manufacturer OneD Battery Sciences has created SINANODE, which integrates into existing manufacturing processes, tripling the energy density of the anode while reducing its cost per kWh by half. The higher energy density increases battery range while nanowires reduce the charging time. Leading graphite suppliers, battery and electric vehicle manufactures in the U.S., Europe, and Asia, have tested SINANODE by applying the technology to commercial EV-grade graphite used in the anodes of EV batteries. SINANODE was developed with commercial manufacturing CVD equipment available from multiple vendors, using only silane and nitrogen gases. This reduces the investments and time necessary to scale up the SINANODE step to EV quantities, while decreasing the cost of EV anodes by almost 50%, compared to the cost of most of the anodes used in EV batteries today.

Electric Vehicle Battery Industry Procurement Intelligence report, by Grand View Research, deep dives into the following insights from the industry:

• Growing adoption of electric vehicles is aiding to the growth of EV battery market

the Government of India is planning to set up 69,000 charging stations across the country by 2030. Moreover, the increasing efficiency starting from charging station set-ups to fast charging of the electric vehicle is expected to create a significant growth opportunity for the market in near future. With the growing requirement for EV batteries, the suppliers are finding newer sourcing and procurement methods for optimizing the cost of manufacturing, reducing the volatility of obtaining raw materials, and improving profitability.

• The global EV battery market is fragmented and competitive, with many large suppliers collaborating with mid-sized or small-sized companies to leverage their regional manufacturing capabilities

Leading EV battery suppliers are mostly manufacturing EV batteries for their in-house charging infrastructure development. Hence, the competition is particularly high among the smaller regional EV battery suppliers. An increase in mergers and acquisitions, coupled with diffused customer concentration, has enabled the EV battery suppliers to secure add-on offerings to realize growth in new geographies.

• Raw material costs make up the bulk of the cost head. The total cost of ownership is significantly influenced by the cost of integrating the battery in the electric vehicle. – Raw materials, including lithium, graphite, MN+Li+Co, are the biggest cost component of EV battery manufacturing; accounting for more than 60% of the total cost.
• The Asia Pacific region holds the highest share of the global EV battery market, thanks to China’s position as the leading sourcing destination due to its low cost of labor. – The majority of the big players in the market are based out of APAC. It is also the fastest-growing market, owing to the supportive policies of China’s government and the development of China as the global EV battery manufacturing hub. However, the majority of the EV battery produced in China are sold to domestic electric vehicle manufacturing companies.

EV Battery Industry – Cost Intelligence Highlights:

Grand View Research has identified the following key cost components for EV Battery Industry:

• Raw Materials
• Lithium
• Separator
• Graphite
• Mn+Li+Co
• Others
• Energy
• Labor
• O&M, Insurance
• SG&A Overheads and R&D
• Working Capital
• Taxes
• Profit

Raw material cost, the major cost component of an EV battery, accounts for more than 60% of the total cost of manufacturing.

EV battery Industry – Supplier Intelligence – Capability based ranking & selection criteria with weightage:

Operational Capabilities –

• Years in Service – 15%
• Geographical Service Presence – 35%
• Employee Strength – 15%
• Revenue Generated – 15%
• Key Clients – 12%
• Certifications – 8%

Functional Capabilities –

• Battery Type – 50%
  • Lead acid
  • Lithium ion
  • Ni-metal ion
  • o  Others
• Battery Capacity (kWh) – 25%
  • High (>100 KWh)
  • Medium (51 to 100 KWh
  • Low (0 to 50 KWh)
• Propulsion – 25%
  • Battery electric vehicle (BEV)
  • Plug In hybrid electric vehicle (PHEV)

List of Key Suppliers in the EV Battery industry:

• CATL
• Samsung
• LG Chem Ltd.
• BYD Company Ltd.
• Panasonic
• Tesla
• GS Yuasa International Ltd.
• Hitachi Chemical Co., Ltd.
• TCL Corporation
• Crown Battery Manufacturing

Addon Services offered by Grand View Research:

• Should Cost Analysis – Raw material cost accounted for more than 65% of the overall cost of EV battery manufacturing. Key raw materials include lithium, graphite, manganese, and cobalt. Among these, lithium has the highest cost share in overall EV battery manufacturing cost with 35%. Lithium price has been witnessing a significant drop since 2017 due to over-supply caused by an avalanche in Australia, the leading lithium producer. Labor cost is the key cost component of overhead costs. Trends of market correction in terms of salary are resulting in the rise of labor wage globally. However, salaries offered are based on region-centric policies. Therefore, shifting procurement and manufacturing practices to LCC countries could help manufacturers drive down the cost of labor.
• Rate Benchmarking – The type of EV battery is one of the most important aspects while analyzing the rate benchmarking of EV battery manufacturing. In our research, we have analyzed the rates of lithium-ion (Li-ion) batteries, sodium-nickel-chloride (NA-NiCl2) batteries, nickel-metal hydride (Ni-MH) batteries, and lithium-sulfur (Li-S) batteries. NA-NiCl2 are the most expensive batteries in the market. The average price of these batteries is 50%-60% higher than Li-ion and Li-S batteries. However, Li-ion and Li-S batteries have a 30% lower price to maximum charge ratio than NA-NiCl2 batteries. Moreover, the normal voltage of Li-ion batteries is 10% higher than NA-NiCl2, and Ni-MH batteries. Hence, using Li-ion and Li-S batteries will give more cost-benefit while installing it in an electric vehicle.
• Salary Benchmarking – Our research indicates that the Production Supervisor/Manager of LG Energy Solution, Panasonic, and Samsung SDI earn 35% higher salaries than Production Supervisor/Manager from other industry leaders like CATL and BYD. However, the YoY increment rate in such companies largely depends on KRAs.
• Supplier Newsletter – It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Browse through Grand View Research’s collection of procurement intelligence studies:

• Patient Engagement Solutions Market Procurement Intelligence – The global patient engagement solutions market is expected to witness sustainable growth (CAGR of 21%) from 2020 to 2025 mainly due to the rapid penetration of mhealth applications and platforms into the healthcare industry coupled with the provision of uninterrupted and rapid internet access utilizing 3G and 4G networks.
• Vitamins and Dietary Supplements Market Procurement Intelligence – The global vitamin and dietary supplements market is expected to exhibit a CAGR of 4.9% from 2020 to 2025 with capsules and tablets being the most consumable dosage form of supplements. Powder is expected to emerge as the fastest-growing dosage form from 2020 to 2025 with a projected CAGR of 6.4% from 2020 to 2025.

According to the new market research report “EV Battery Market by Battery Capacity (<50, 50-110, 111-200, 201-300 and >300), Battery Form (Wire, Laser), Propulsion (BEV, PHEV, PHEV, FCEV), Battery Type, Material Type, Li-ion Battery Component, Method, Vehicle Type & Region – Global Forecast to 2025″, published by MarketsandMarkets, the global EV Battery Market is projected to grow at a CAGR of 25.3% from USD 27.3 billion in 2021 to USD 67.2 billion by 2025.

Browse in-depth TOC on “EV Battery Market”
176 – Tables
80 – Figures
248 – Pages

Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id= 100188347

The growth of the EV Battery Market can be attributed to the increasing demand of electric vehicles, improvement in battery technology, supporting government policies and regulations, and launch of new plug-in EV models.

Asia pacific is expected to be the largest EV Battery Market in the forecast

Countries such as China, Japan, India, South Korea, and Thailand are considered under Asia Pacific for market analysis. China is the largest contributor to the global market, accounting for a share of more than 95%. Chinese companies such as Panasonic, LG, Chem, Samsung, CATL, and BYD are dominating both the Chinese and global EV Battery Market. Chinese EV manufacturers, who have access to cheaper parts and components, are providing electric vehicles at lower prices.

The Chinese government has made significant investments to convert conventional public transport fleets into electric ones, which also drives the EV Battery Market. In 2019, BYD launched its K12A, the world’s first 27-m pure electric bus. With a passenger capacity of 250 people, it is the longest pure electric bus in the world and can travel at a maximum speed of 70 km/h. The K12A is also the world’s first electric bus equipped with a distributed 4WD system, which can smoothly switch between 2WD and 4WD to meet the demands of different terrains, while also lowering the vehicle’s overall energy consumption.

The Indian government has announced plans for financial support for EVs—a zero-rated goods and services tax (GST) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme run by the Department of Heavy Industries to increase the adoption of electric vehicles. State authorities are rolling out contracts for electrifying the public transport fleet. For example, in 2018, BYD supplied 25 electric buses to the city of Pune and is expected to supply more in other cities.

South Korea and Japan started adopting electric vehicles in the last few years, with the introduction of hybrid vehicles. In October 2020, Toyota and Panasonic formed a joint venture to begin the production of batteries for hybrid vehicles at a facility in Japan. The Japanese manufacturer, Mitsubishi has announced to spend USD 9.6 million to boost production of electrolyte solution for lithium-ion batteries in 2021. The company will used this fund to upgrade equipment at plants in the U.S., the U.K. and China.

With advancements in battery technology and focused research, the presence of EVs in these countries has grown considerably.

 Europe is expected to be the fastest-growing market during the forecast

Countries such as Germany, France, Spain, UK, Italy, Norway, Sweden, and Denmark are considered under Europe for market analysis. The presence of OEMs such as VDL Groep (Netherlands) and AB Volvo (Sweden) offers opportunities for the growth of the EV Battery Market in the region. The increasingly stringent regulations related to environmental issues are propelling market players to test and develop advanced vehicles, which will further boost the market for advanced battery technologies. For example, Brexit deal creates an opportunity for Nissan to expand the business operations at its Sunderland plant. In return, the Japanese OEMs is even investing in the UK and other European countries. Nissan is interested to build additional battery production capacity in Sunderland. In September 2020, Mercedes-Benz, a subsidiary of Daimler AG, introduced its new all-electric eCitaro G, optionally equipped with innovative solid-state batteries. In December 2019, Volvo Trucks, a subsidiary of AB Volvo, developed heavy-duty electric concept trucks for construction operations and regional distribution.

France is expected to be the fastest-growing market for EV batteries in the region. The initiatives undertaken by the French government to promote electric commercial vehicles and electrification of public transport fleets are driving the country’s EV Battery Market. The government in Germany is also focusing on increasing the use of electric vehicles.

Major battery manufactures have been expanding their networks in the European region that has allowed significant growth of EVs and batteries. For instance, in 2017, Samsung SDI has invested about USD 1.3 billion to expand its factory in Hungary. This allowed Samsung to start production in 2018 on the Hungary plant, which produced batteries for 50,000 EVs that year.

 Request FREE Sample Report: https://www.marketsandmarkets.com/requestsampleNew.asp?id= 100188347 

The laser bonding segment is expected to be the largest EV method in the forecast

The laser bonding method is expected to lead the EV Battery Market during the forecast period. This method is mostly preferred due to its non-contact process that enables welding of dissimilar materials with high precision. Laser bonding is considered a reliable technology to connect battery cells and achieve fast production of battery pack conductive joints.

Key Market Players:

The global EV Battery Market is dominated by major players CATL (China), Panasonic (Japan), LG Chem (South Korea), BYD (China), and Samsung SDI (South Korea).The key strategies adopted by these companies to sustain their market position are new product developments,merges & acquistions, supply contracts, partnerships, expanisons, collaborations, acquisitions, and contracts & agreements.