Global Growth Opportunities for Advanced Lithium Batteries for EVs and the Adoption of Future Battery Chemistries

Global Growth Opportunities for Advanced Lithium Batteries for EVs and the Adoption of Future Battery Chemistries

The widespread adoption of electric vehicles (EVs) has increased the need for efficient battery solutions, augmented safety, and an extended life span. To date, lithium-ion (Li-ion) batteries have been predominantly used in electric powertrain; however, the adoption of Li-ion battery chemistries such as nickel cobalt aluminum oxide (NCA), nickel manganese cobalt oxide (NMC), and lithium iron phosphate (LFP) has also gained momentum. As demand rises, battery costs will reduce from more than $1,000/kWh in 2010 to $100-$110/kWh in 2022 (and reduce even further beyond this). Many research institutions, battery suppliers, and key OEMs are collaborating to develop future battery chemistries with effective material performance, reduced production costs, and enhanced safety. As future chemistries (solid state, sodium ion, lithium sulfur) evolve, they will offer improved safety, increased energy density, and fast-charging capabilities, thereby overcoming the challenges associated with traditional Li-ion batteries.

Almost all the major suppliers, including CATL, LG Chem, and Panasonic, have ramped-up production capacities. The EV battery market has grown from 4,892 MWH in 2013 to 296,657 MWH in 2021 at a CAGR of 55.7%. These companies think that future battery chemistries will be a game-changing technology for EVs. Several suppliers and OEMs have signed contracts with research institutions to develop and expand future battery chemistry technologies.

This Frost & Sullivan study discusses global growth opportunities for advanced lithium batteries for EVs and the adoption of future battery chemistries; some of the topics covered are disruptive technologies impacting the market; the technology readiness level of future batteries; key automakers' investments in gigafactories; a performance comparison of existing battery chemistries and future chemistries; OEM preferences in terms of adopting solid-state battery technologies; and challenges and roadblocks to commercialization. The research service also analyzes the patent landscape for future chemistries such as solid-state, sodium-ion, lithium-sulfur, and lithium-air batteries.