In an ever-changing automotive industry, the widespread adoption of electric vehicles (EVs) is expected to fuel a significant increase in the demand for batteries, particularly in the United States and Europe. As governments actively support the growth of EV sales through favorable policies, battery manufacturers are well-positioned to seize the emerging opportunities in the electric vehicle sector.
The global electric vehicle battery market is experiencing robust growth, projected to achieve a promising Compound Annual Growth Rate (CAGR) of 8.5%. By 2033, the market is expected to reach a significant revenue milestone of US$ 21.2584 billion. As of 2023, the market is already valued at US$ 9.4023 billion, demonstrating a strong foundation for future expansion.
The increasing transition toward electric vehicles (EVs) will propel accelerated battery demand in leading automobile markets like the United States and Europe. Battery and automotive manufacturers are facing challenges owing to uncertainty related to the battery supply chain. Several players are considering constructing gigafactories or joining joint ventures to combat shrunken supply.
The shift toward EVs can be attributed to adverse climactic change and increasing carbon emissions, especially in urban cities. The EV30-30 Scenario targets a surging value share of EVs to 30% by 2030 (excluding two/three-wheelers).
Favorable government policies to encourage EV sales are predicted to offer opportunities for battery makers of EVs. Additionally, technological advancements have spiked the energy density of lithium-ion batteries while reducing the overall price of lithium-ion batteries. As a result, propelling its uptake in li-ion powered EVs.
Surging investments for the upgradation of public charging infrastructure in conjunction with the rising efficiency of EVs are expected to create lucrative opportunities for manufacturers.
The high cost of EV batteries remains a challenge, but with advancements in technology and economies of scale, the prices are expected to decline in the future. Collaboration between governments, automakers, and battery manufacturers is crucial to address the challenges and foster the growth of the EV battery market.
Overall, the demand for EV batteries is projected to surge in the coming years, driven by government initiatives, technological advancements, and the increasing popularity of EVs. The United States and Europe are expected to be the key contributors to this growth, presenting significant opportunities for battery manufacturers in these regions.
