Lithium Ion Batteries for Electric Vehicles Will Reach $22 Billion in Annual Market Value by 2020

In recent years, the lithium ion (Li-ion) battery industry has taken a number of steps forward.

The technology continues to improve, leading battery cell manufacturers have built new factories that incorporate advanced production techniques, and automakers have greatly increased their research and development (R&D) efforts on plug-in electric vehicles (EVs).

According to a new report from Pike Research, a part of Navigant’s Energy Practice, these developments will translate into strong growth for Li-ion batteries over the remainder of the decade.

The overall market for Li-ion batteries in light duty vehicles will grow from $1.6 billion in 2012 to almost $22 billion in 2020, the study concludes.

“The Li-ion battery looks set to be the chemistry of choice for the on-board energy storage market for the foreseeable future, taking over from nickel-metal hydride, which has been the preferred battery for hybrids to date,” says senior research analyst David Alexander.  “Li-ion batteries can supply the much greater capacity needed for battery electric and plug-in hybrid vehicles, and 2012 saw the launch and announcement of new models from many manufacturers, all featuring Li-ion batteries.”

Global automotive manufacturers are accelerating their efforts to produce more vehicles utilizing electric drivetrains. Many factors are contributing to this trend, including newly enacted fuel economy standards, greater confidence in electric powered vehicles, and advances in battery technology. In 2012, Toyota introduced the fifth-generation Prius, powered for the first time with lithium ion (Li-ion) batteries. The shift from nickel-metal hydride (NiMH) batteries to Li-ion represents a major endorsement of this chemistry as well as its ability to perform consistently in an automotive environment.

The immediate future looks to be secure for the Li-ion chemistry, although there are many variants still under development to improve performance and reduce cost. The technology continues to improve, and leading battery cell manufacturers have built new factories utilizing the latest production techniques including greater automation and faster throughput. Pike Research forecasts that the overall market for Li-ion batteries in light duty transportation will grow from $1.6 billion in 2012 to almost $22 billion in 2020.

This Pike Research report provides a detailed examination of the growing market for lithium ion batteries, including profiles of all of the leading Li-ion battery manufacturers. Forecasts for revenues from Li-ion batteries, segmented by vehicle type, are included, along with vehicle roadmaps for hybrid, plug-in hybrid, and battery electric vehicle sales by region. The report also includes a review of competing energy storage technologies, including ultracapacitors and nickel-metal hydride batteries.

Key Questions Addressed:

• Have lithium ion batteries become the industry standard for electrified vehicles?
• Who are the leading Li-ion battery manufacturers?
• What are the leading chemistries in the electric vehicle battery market?
• How will the cost per kWh change in the next several years?
• What are the commercialization challenges for automobile manufacturers?
• What are the vehicle roadmaps for hybrid, plug-in hybrid, and battery electric vehicles through 2020?
• What are the forecasts for revenue from Li-ion batteries through 2020?

http://www.pikeresearch.com/research/electric-vehicle-batteries