EV Batteries and Materials: Technology, Trends, and Market Forecasts

EV Batteries and Materials: Technology, Trends, and Market Forecasts

  • November 2017 •
  • Report ID: 4683542 •
  • Format: PDF
With more automakers aiming to market cheaper, longer-range plug-in cars, demand for lithium-ion automotive batteries is expected rise sharply in 2017.

The key to the market growth is the use of battery packs that are in some cases two to three times bigger than those employed in electric cars just five years ago. By incorporating bigger batteries, the new vehicles will offer greater all-electric ranges.

Unfortunately, high costs of lithium-ion battery cells have been one of the main hindrances to large-scale electric-car adoption, as they typically lead to higher purchase prices for electric cars than comparable internal-combustion models.

Because of improved chemistry, manufacturing processes and economies of scale, average electric-car battery costs continue to decline.

Battery pack prices are expected to halve to $215 per kilowatt hour by 2020 from $400/kWh now. Due to the rapid decline in this cost Exane BNP Paribas predicted that by 2025 automakers will generate bigger profit margins from EVs than from cars with internal combustion engines. As EV growth escalates, the industry would need a global battery production capacity of 600 gigawatt hours, enough to build 8.6 million cars with an average battery size of 70kWh.