North Europe Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The North Europe battery market is expected to grow at a CAGR of more than 15% during the forecast period.

The market was moderately affected due to the COVID-19 pandemic. However, the market has since rebounded and is expected to grow steadily during the forecast period.

Key Highlights

• Over the long term, rising demand for electric vehicles and its charging infrastructure projects are expected to stimulate market growth.
• On the flip side, the supply-demand gap of raw materials, such as cobalt which is essential for the Li-ion battery, is likely to hinder the market's growth during the forecast period.
• However, the commercialization of new and advanced battery chemistries is expected to be a significant opportunity for the market during the forecast period.

North Europe Battery Market Trends

The Lithium-ion Segment is Expected to Witness a Significant Growth

• North Europe is expected to be the fastest-growing market for lithium-ion battery market during the forecast period. The penetration of electric vehicles and increased usage of batteries for transportation, energy storage, and the consumer market is anticipated to provide a massive impetus for the lithium-ion battery industry's growth.
• Factors such as growing environmental concerns and decreasing oil reserves are the main factors for the increasing demand for batteries for electric vehicles. Advances in battery technology have led to faster charging, higher energy densities, and reduced battery degradation.
• Nordic countries are gaining a share in the lithium-ion battery market owing to the high usage of EVs, particularly in Norway. Norway is the largest electric vehicle market in Europe. According to IEA, the total EV sales in Norway in 2021 accounted for 153,699 units, up from 63,041 units in 2017, making Norway one of the largest EV markets in Europe.
• The demand for electric car batteries and raw materials needed for manufacturing lithium-ion batteries is expected to continue to increase in the coming years in Finland. Based on its mineral resources and other strengths, Finland has the potential to fill the cathode material needs of one large Electric Vehicle Battery (EVB) plant. This translates into a key supplier position for one or two car manufactures in Europe.
• Moreover, declining battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for lithium-ion battery technologies. Therefore the growth in the automotive industry is expected to directly impact the growth of the lithium-ion battery market in the country during the forecast period.

Sweden is Expected to Dominate in the Market

• Sweden has a unique position to establish large-scale battery production to support Europe’s transition to renewables with its clean and affordable energy, proximity to raw materials, and a strong industrial tradition.
• Sweden has one of the highest shares of energy production from renewables among EU member states. As of 2021, Sweden's installed renewable capacity stood at 34.53 GW, up from 28.18 GW in 2017. Thus adding battery capacity in Sweden helps the country stabilize the grid while reducing the carbon footprint.
• Driving the automotive industry away from oil and towards lithium-ion batteries is expected to reduce its carbon footprint and make it possible to build affordable electric cars that perform at the same level, or better, as cars with combustion engines. And Sweden is already a leader when it comes to green electricity.
• Sweden's annual EV sales have reached 138,771 vehicles in 2021 from 20,553 vehicles in 2018 showing the increased demand for battery run vehicles in the country.
• Sweden is rich in minerals and the leading mining nation in Europe. Demand for batteries in electric vehicles is surging, which leads to growing interests from foreign companies to explore Swedish lithium deposits.
• The construction of Europe's largest green battery factory is underway in Sweden. Therefore, Sweden is expected to dominate in the North Europe battery market during the forecast period.

North Europe Battery Market Competitor Analysis

The North Europe Battery Market is moderately consolidated. Some of the key players in the market include (not in particular order) Northvolt AB, Clayton Power, Broadbit Batteries Oy, Geyser Batteries Oy, and Micropower Group AB, among others.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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