EV Battery Market Overview
The EV battery market plays a crucial role in the global automotive industry’s electrification trend. This article discusses a new report from Guidehouse Insights on the EV battery market’s current state, industry trends, and future price outlook.
Market Drivers and Growth
The demand for advanced batteries and associated minerals is rising due to increasing plug-in EV sales, regulatory pressure on vehicle emissions, and OEM commitments to electrification. The report predicts that the global manufacturing volume for light-duty (LD) battery EV (BEV) batteries will grow from over 533 GWh in 2023 to over 4.5 TWh in 2032, a compound annual growth rate (CAGR) of 26.9%. Consequently, global revenue for LD BEV batteries is expected to rise from over $71 billion in 2023 to over $324 billion in 2032, a CAGR of 18.3%.
Battery Cell Technology
Battery cell technology is improving, leading to a diverse market landscape. Nickel-rich and lithium iron phosphate (LFP) batteries dominate the market, with LFP expected to gain more adoption in the coming years. Next-generation technologies like silicon anodes and solid-state, lithium sulfur, and sodium ion batteries are maturing and nearing mass-market production.
Future Challenges and Opportunities
Meeting the global demand for PEVs in the next decade will require a massive capacity buildup along the value chain. This may lead to potential supply disruptions due to the risk of expanded cell manufacturing capacity outpacing raw material availability. However, this challenge also presents opportunities for localizing mineral extraction, refinement, and cell production, often incentivized by government regulations and subsidies.
About Guidehouse Insights
Guidehouse Insights, Guidehouse’s dedicated market intelligence arm, provides research, data, and benchmarking services for rapidly changing and highly regulated industries. For more information, visit www.guidehouseinsights.com.
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