Electric Vehicle (EV) Battery Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

The global electric vehicle battery market is driven by a rise in the demand for zero-emission vehicles due to increasing global concerns regarding climate change and alarming pollution levels recorded in the major cities that have created a significant need for electric vehicles.

Drivers:

• Collaborations and Procurements Initiated by Automobile and Raw material Companies to Hike their Presence in the EV market
• Expansion of global auto manufacturers into electric vehicle markets
• Consumers have started adopting electric vehicles (EVs) and hybrid electric vehicles (HEVs) due to the growing trend toward adopting green cars.
• The growing aim of consumers to minimize the emission of GHGs and global warming is also encouraging automotive enthusiasts to opt for electric vehicles
• The hike in petroleum prices drives the growing demand for low commercial electric vehicles
• Growing financing and insurance options for electric vehicles have increased the demand for the EV battery market

A battery is used as a secondary power source in automobiles. An electric vehicle battery or traction battery is a rechargeable battery. It uses electrochemical energy stored in rechargeable battery packs for power and therefore does not require any combustion engine for propulsion. An electric vehicle battery or traction battery is used to power the electric motors of a battery electric vehicle (BEV) or hybrid electric vehicle (HEV).

Mostly Lithium-ion batteries are used in electric vehicles. They have a higher energy density than nickel-cadmium and lead-acid batteries. With these features of lithium-ion batteries, manufacturers can reduce the overall battery pack size and thus save space.

Some of the Battery Policies:

• In May 2018, under the European Green Deal policy, the European Commission adopted the strategic action plan on batteries to support the battery supply chain in Europe, from raw material extraction, sourcing, and processing, battery materials, cell production, battery systems, and reuse to recycling
• In November 2021, the United States introduced the Federal Consortium for Advanced Batteries (FCAB) to bring Federal agencies interested in domestic manufacturing and supply of lithium ion batteries and are committed to accelerating the development of a robust and secure domestic industrial base
• In March 2022, India introduced the National Programme on Advanced Chemistry Cell Battery Storage (NPACC) under the Production Linked Incentive (PLI) Scheme to support the battery value chain in India, from raw material extraction, sourcing, and processing, battery materials, cell production, battery systems, reuse to recycling

EV Battery Market Opportunities:

• Supportive government policies and investments for deploying the public charging infrastructure and raw materials manufacturing are clubbed with the increasing efficiency of the electric vehicle are expected to create a significant opportunity for the electric vehicle battery market
• Growing demand for low speed electric vehicles such as golf cars and others.
• The development of new business models such as battery swapping and battery as a service can provide new opportunities for the electric vehicle battery market

EV Battery Market Challenges:

• Supply Chain Susceptibility for Important EV Battery Essentials to Hinder Demand
• The growing global power crisis is one of the challenges hampering the electric vehicle (EV) battery market growth
• Lack of Charging Infrastructure and Scarce Material Supply had Limit the Adoption of electric vehicles
• Growing fuel cell vehicles demand in medium and high commercial vehicles

EV Battery Market Restraints:

• Increasing cost of lithium-ion batteries to thrust market growth
• The country's dependence on oil imports has consequently increased, increasing the electricity cost. Thus, the power crisis and the increased cost of electricity generation significantly affect EV sales, thereby affecting EV batteries
• Reduction in subsidies in major markets such as China, Germany, and others
• High import taxes on EV batteries and EV vehicles in major markets such as India, the United States, and other countries

Recent Developments :

• In July 2022, Japanese electronics giant Panasonic is planning to spend $4 billion to build a new battery factory in the United States for electric vehicles
• In July 2022, Vietnamese automaker VinFast is partnered with Taiwanese battery startup ProLogium Technology on solid-state EV batteries for delivery as early as 2024
• In June 2022, China's automotive lithium-ion battery maker, Contemporary Amperex Technology Co Ltd, revealed a new battery that provides electric vehicles with a driving range of over 1,000 km on a single charge

Regional Market Analysis

The global electric vehicle battery market report is segmented based on geography into North America, including the United States, Canada, Mexico, and the Rest of North America; Europe, including Germany, France, United Kingdom (UK), Italy, Russia, and the Rest of Europe; Asia Pacific (APAC) including China, India, Japan, South Korea, Australia, Indonesia, and Rest of APAC; South America including Brazil and Rest of South America; and the Middle East and Africa including Saudi Arabia, Brazil, Nigeria, South Africa, and other countries.

Asia-Pacific is expected to be the leading region in the electric vehicle battery market during the forecast period, followed by North America, Europe, the Middle East, and South America.

Asia Pacific:

The Asia Pacific region has countries that have both developing and established battery markets. For instance, countries such as China, Japan, South Korea, Australia, and others have an established large-scale EV market, and others are increasing the demand for the electric vehicle battery market.

The Asia Pacific is expected to be the largest electric vehicle battery c market region during the forecast period. With a target to reduce emissions, energy storage systems demand will rise in the power generation sector, and electric vehicle demand will increase in transportation, especially in China, Japan, India, and others.

Publisher's Electric Vehicle Battery Market report provides insights into the current market demand environment and prognosis.

The study thoroughly examines the many factors that impact the development of Electric Vehicle batteries. The study also comprehensively analyses the lithium ion battery materials by segmenting them based on region (Asia Pacific, North America, Europe, South America, Middle East, Africa), based on Battery Technology (Lithium ion battery, lead acid battery, Sodium ion battery, and Others).

The report also discusses current and future market possibilities, trends, advancements, the effect of Covid 19 impact and the Ukraine and Russian War on the electric vehicles battery market, essential developments, regions, and segments poised for the fastest growing competitive landscape. Further, the report will also provide the electric vehicle battery market size, demand forecast, and growth rates.


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