A report has found the global Electric Vehicle (EV) battery market is projected to grow at a compound annual growth rate of 25.3 per cent from $US27.3 billion in 2021 to $US67.2 billion by 2025.
Growth in this market is due to increasing demand for EVs, improvement in battery technology, supporting government policies and regulations as well as the launch of new plug-in EV models.
Asia Pacific is expected to be the largest EV battery market according to the report’s forecast.
Countries such as China, Japan, India, South Korea, and Thailand are considered under Asia Pacific for market analysis. China is the largest contributor to the global market, accounting for a share of more than 95 per cent. Companies such as Panasonic, LG, Chem, Samsung, CATL, and BYD are dominating both the Chinese and global EV battery market. Chinese EV manufacturers, who have access to cheaper parts and components, are providing electric vehicles at lower prices.
Meanwhile, Europe is expected to be the fastest-growing market.
Countries such as Germany, France, Spain, UK, Italy, Norway, Sweden, and Denmark are considered under Europe for market analysis. The presence of OEMs such as VDL Groep (Netherlands) and AB Volvo (Sweden) offers opportunities for the growth of the EV battery market in the region. The increasingly stringent regulations related to environmental issues are propelling market players to test and develop advanced vehicles, which will further boost the market for advanced battery technologies.
For example, the Brexit deal creates an opportunity for Nissan to expand the business operations at its Sunderland plant.
In return, the Japanese OEMs are even investing in the UK and other European countries.
Nissan is interested to build additional battery production capacity in Sunderland. In September 2020, Mercedes-Benz, a subsidiary of Daimler AG, introduced its new all-electric eCitaro G, optionally equipped with innovative solid-state batteries.
In December 2019, Volvo Trucks, a subsidiary of AB Volvo, developed heavy-duty electric concept trucks for construction operations and regional distribution.