Far-flung global concerns on climate change's negative effect, alarming pollution levels recorded in major cities and rise in petrol and diesel prices owing to depletion of fossil fuel reserves propel the growth for the global Electric Vehicle Battery (EVB) market, which is projected to reach at $84 million by 2025, research from Allied Market Research noted.
In addition, the support provided by the various governmental agencies encourages the sale of EVs. These factors together increased the need for advanced fuel-efficient technologies, leading to a surge in demand for electrically powered vehicles for travel. According to the research agency, the EVB market is set to grow at a CAGR of 17.2% from 2018 to 2025.
The Allied Market report stated that the emergence of Lithium-ion technology has fueled the growth rate for batteries over the last two decades. While hybrid vehicles initially used Nickel Metal Hydride (NiMH) batteries, Li-ion batteries have become the primary solutions for vehicle makers to power plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).
High-energy density, charge retention capacity, and low maintenance are some of the benefits that have accelerated the growth of Li-ion as a battery technology, the report noted. In addition, vehicle manufacturers introducing BEVs and PHEVs are further enhancing the technology and are anticipated to offer Li-ion powered solutions as a primary power source in their vehicles. The growth of the EVB is also driven by the decrease in the cost of the battery system, the report said.
The report also mentioned some recent developments in the lithium/battery EV markets.
Courtesy: Allied Market Research. NB: Photo is representational; courtesy: Grinntech.