As per a new Fact.MR analysis, the global electric vehicle (EV) battery market is projected to expand at a prolific CAGR of 18.5% and reach a valuation of US$ 347 billion by the end of 2033, up from US$ 63.55 billion in 2023.
A battery is an essential component of any electric vehicle (EV). A battery is a device that uses an electrochemical process to transform chemical energy into electric energy. In an electrical circuit, an electrochemical reaction happens when electrons move from one substance to another. A battery is usually made to meet all of the needs of the charging system needed by an electric vehicle. A typical EV battery pack is made up of blocks of 18 to 30 parallel cells connected in series to produce the required propulsion voltage.
- Increased consumer awareness of the benefits of EVs, evolving lifestyles, rapid urbanization, and rising disposable income are anticipated to push the sales of electric vehicles, thereby driving the need for more EV batteries.
- Deployment of electric vehicle batteries in passenger cars is expected to increase at a CAGR of 18.6% over the forecast period owing to stricter emission rules by several governments around the world.
For electric vehicles to be capable of long-distance commuting, several charging stations are essential. However, a comprehensive electrification program has yet to be put into place for all types of transport vehicles, including automobiles, two-wheelers, public transport vehicles, and freight delivery trucks.
Longer-range electric vehicles are more practical for people who travel over longer distances. Due to improvements in battery technology and electric car battery charger efficiency, high-speed charging will also become a reality, reducing downtime while driving. As a result, the market will be driven by rising EV demand.
Increased demand for electric cars, improvements in battery technology, favorable government policies and regulations, and the release of new plug-in EV models are some of the reasons propelling the market for EV batteries. Sales have been influenced by a significant increase in demand for zero-emission vehicles as a result of rising fuel prices, the depletion of fossil fuel reserves, and tightening pollution rules.
“Rapidly Rising Sales of Plug-in EV Models”
The market for electric vehicles is rapidly growing on a global scale. Major automakers are entering the market as a result of the rising demand for EVs, which will ultimately boost the need for EV batteries. Leading producers are creating electric car models to boost their market share. The attention of major manufacturers in the industry is expected to boost the development of electric vehicles.
“Surging E-mobility Trends to Push EV Battery Sales”
The e-mobility trend is predicted to gain pace due to rising electric car sales over the coming years. Market growth is driven by the continued deployment of integrated charging stations and the development of green power production capacities.
Strategic collaborations between e-mobility providers, battery manufacturers, and energy suppliers are boosting sales of electric vehicle batteries. Automakers are simultaneously promoting technological breakthroughs to guarantee that the propulsion systems in their electric vehicles are powerful.
Top manufacturers of electric vehicle batteries are focusing on new developments, quality control, product standards, collaborations, and supply chain management. Top automakers are concentrating on forming strategic alliances with battery producers to secure a stable supply of batteries.
- In 2021, Panasonic introduced its new Tesla-specific 4680 battery cell. According to the manufacturer, the new battery offers six times higher power capacity and five times more energy. A new battery cell may also be less expensive, have great efficiency, and have a long range in tiny battery packs.
These insights are based on a report on Electric Vehicle (EV) Battery Market by Fact.MR.