Electric Vehicle Battery Market

By Vehicle Type (Battery Electric Vehicle (BEV), Fuel Cell Electric Vehicle (FCEV), Hybrid Electric Vehicle (HEV)),
By Battery Type (Lead-Acid, Lithium-Ion, Nickel Metal Hydride, Others),
By Vehicle Make (Passenger Vehicle, Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV)),
By Battery Capacity (Less than 100kWh, 111kWh to 300kWh, More than 300kWh),
By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa):

Global Analysis and Forecast 2023-2033

Automotive and Transport
Report Code:
Published Date:
July 2023

The global electric vehicle battery market is to be worth more than USD 264.12 billion by 2033.

The ongoing proliferation in demand for electric vehicles within the automotive industry, coupled with growing disposable income in developing regions, is predicted to enormously support electric vehicle battery market growth. The analysis has represented vast opportunities in Asia- Pacific region. Along with the rise in disposable income, consumer interest is also inclining towards green transportation. The growing preference for a zero-emission vehicle to address environmental concerns propels more electric vehicle battery market demand. The electric vehicle battery market, at the back of many national governments' support, is meeting the growing demands of consumers for highly advanced and safer rides.

Another triggering factor for electric vehicle battery market growth is that electric vehicle battery prices are declining annually. The price of Lithium-ion batteries fell from $1,100/kWh in 2010 to $137/kWh in 2020, a decline of 89%. Lithium-ion battery costs have decreased because of greater rivalry by significant market participants investing in their operations to increase industry performance and achieve economies of scale in manufacturing and R&D activities. The only concern with these batteries is their concentrated supply chain. For instance, China has dominated the whole supply chain of graphite for many years and produces 70% of the flake graphite, which necessitates being treated before being used in batteries, and around 50% of the synthetic graphite utilized in batteries. The governments of various countries have provided financial incentives such as subsidies, tax exemptions, and free charging to promote the use of EVs. For instance, in January 2022, the U.K. government extended and augmented the electric vehicle (EV) grant accessible to consumers. This grant allows consumers to avail of discounts when acquiring eligible EVs. The funding has been increased to £3,500 ($4,650) from £2,500 ($3,320) for suitable electric cars and has been set up to £8,000 ($10,600) for eligible vans. Vehicles must meet explicit requirements in order to be eligible for the subsidy, such as emanating less than 50g/km of CO2 and having a range of at least 70 miles for automobiles and 60 miles for vans on a single charge. Moreover, the support is only available for brand-new automobiles, not for used ones. Subsidies such as these are making EVs accessible to many consumers propelling the growth of the electric vehicle battery market in return.

The electric vehicle battery industry companies are undergoing mergers, collaboration, acquisition, long-term contracts, and service agreements to increase their global footprint. For instance, in December 2021, BYD and Toyota partnered to advance electric vehicles and batteries. Under the agreement, BYD and Toyota will conjointly develop sedans, low-floor SUVs, and batteries for these vehicles. BYD and Toyota will work together closely on developing batteries for EVs under the partnership. This involves researching and developing innovative technologies to advance battery performance, safety, and durability, intending to make EVs more hands-on and alluring to consumers. The partnership between BYD and Toyota is a momentous step forward in the global EV market since it pools together two major automakers with corresponding strengths and expertise. The two companies aim to accelerate the development and adoption of EVs, which will, in return, boost the market growth of electric vehicle batteries.

According to the CXOs and primary research conducted, the rise in disposable income and the government's growing influence in developing or developed regions would aggressively impact the electric vehicle battery market growth. Zero emission policies would trigger consumers to invest more of their disposable income toward EVs. Established companies in the market are also joining forces to reduce the price of EVs to make them available to a larger section of the global population.

The electric vehicle battery market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In line with the analyzed region, the Asia-pacific region will witness the highest market growth, followed by Europe, Asia-Pacific, Latin America, and Middle East & Africa. Quick adoption of new demands, influence by the government, rise in disposable income, and major industry players within the region are primary factors supporting market potential within the Asia- Pacific region. The major companies operating within the market are A123 Systems, BYD, CATL, East Penn Manufacturing Company, EVE Energy, GS Yuasa International Ltd., Hitachi Chemical Co., Ltd., LG Chem, Panasonic Corporation, and Samsung SDI.

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Dhvanil Dave
Quadrant Market Insights