Global demand for EV batteries is expected to grow
According to current research by Future Market Insights (FMI), the global demand for electric vehicle batteries is expected to gain traction over the next ten years.
Electric vehicle batteries are projected to be worth $36 billion by the end of 2027. Growing inclination toward renewable energy sources is expected to boost the electric vehicle battery market.
Growing concern associated with increasing air pollution levels due to incomplete combustion of conventional fossil fuel from automobiles has caused increased interest in electric vehicles worldwide. Moreover, a gradual shift in consumer preference from traditional vehicles running on fuel to electric vehicles running on battery is attributed to the increasing prices of crude oil and over-exploitation of oil reserves. Thus, increasing adoption of electric vehicles is directly proportional to the growing demand for the electric vehicle battery, which includes lead-acid, lithium-ion, and nickel-metal hydride batteries. The lightweight, improved energy density, and low density of the lithium-ion battery reportedly makes it an excellent choice among electric vehicles including hybrid, plug-in hybrid, and battery EVs.
The Belgium-based precious metal mining company Umicore raised $1.1 billion from its stakeholder to expand its quantity of cathode material to manufacture lithium-ion batteries for electric vehicles. A major supplier of nickel-manganese-cobalt cathode material for lithium-ion batteries, Umicore is anticipated to invest $1.1 billion on new manufacturing facilities in Europe and China to meet demand for future electric vehicle batteries. Moreover, the company is focused on capacity expansion of its metal recycling plant in Antwerp, Belgium for lithium, cobalt, and other metals. The current capacity of the recycling plant is 7000 metric tons per year.
Several electric vehicle battery manufacturers have shifted toward higher nickel loading in the recent past. However, design of lithium-ion batteries without cobalt is impossible to work efficiently. Cobalt plays a pivotal role to enhance the stability of nickel in electric vehicle batteries to increase energy density. Thus, electric vehicle battery makers prefer lithium-ion batteries over other alternatives. Leading auto makers such as BMW are seeking a long-term supply of metal cobalt and lithium for up to 10 years.
Despite the high performance of lithium-ion batteries, their high cost is likely to hinder the market growth for electric vehicle batteries. Therefore, the rising price factor may lead EV battery manufacturers to develop other alternatives. For instance, a startup firm based in the UK, Faradion has developed sodium-ion batteries that do not require lithium or cobalt. The company also claims that the manufacturing cost of sodium-ion batteries is likely to be half that of the lithium-ion battery cathode. Such innovative sodium-ion technology claims to replace lithium with sodium and depends on nickel only as a redox active transition metal in the positive electrode.
For more information, visit https://www.futuremarketinsights.com/reports/sample/rep-gb-5388.