Global battery Cell Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global battery Cell Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Battery cell market is expected to reach USD 42.08 billion in 2022 and is projected to register a CAGR of over 14.32% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

Key Highlights

• Over the medium term, the growing demand for the Battery cell is expected to stimulate the market growth of Battery cells. Furthermore, The rapid adoption of electric vehicles, mainly fostered by the declining price of lithium-ion batteries is also expected to drive the growth of the market studied.
• On the other hand, the lack of direct access to battery metals is one of the major restraints for the market.
• Nevertheless, with technological advancements, the price of smart gadgets is expected to decline, making them more affordable to the public, which is expected to provide growth opportunities in the forecast period.
• The Asia-Pacific region dominates the market and is also likely to witness the highest CAGR during the forecast period. Majority of the demand comes from countries like China and India.

Key Market TrendsPrismatic cell Segment is Expected to Dominate the Market

• Prismatic cells are a type of battery cell in the battery industry that were introduced in the early 1990s. The modern prismatic cell fulfills the demand for thinner sizes and comes wrapped in elegant packages like a box of chewing gum or a small chocolate bar. The prismatic cells make optimal use of space by using the layered approach. Other designs are wound and flattened into a pseudo-prismatic jelly roll. These cells are mostly found in cell phones, tablets, and low-profile laptops ranging from 800mAh to 4,000mAh.
• Prismatic cells are also available in large formats packaged in welded aluminum housings and deliver capacities of 20–50Ah. These are primarily used in energy storage systems and for electric powertrains in hybrid and electric vehicles. Hence, the larger size of the prismatic cells makes them bad candidates for smaller devices like e-bikes and cellphones. Further, lithium prismatic cells are the preferred technology for material handling equipment (MHE), as the technology provides the best ratio of power and energy per volume unit. Therefore, these battery cell types are better suited for energy-intensive applications.
• These battery cell types have gained popularity due to their large capacity and prismatic shape, making it easy to connect four cells and create a 12V battery pack, providing improved space utilization and allowing flexible design. It also has the highest Ah nominal capacity and kWh energy and a higher overall battery energy density than other cells. Further, these battery cells are not subject to swelling. Such advantages over other battery cell types make it more preferrable by the end-users. However, it can be more expensive to manufacture, less efficient in thermal management, and have a shorter cycle life than the cylindrical design.
• In January 2022, South Korean battery major LG Energy Solution Ltd. plans to add prismatic cell type to its lithium-ion battery lineup. The company has revealed that it could add the prismatic form to its portfolio to broaden its customer base. The company’s local competitors like Samsung SDI and SK On are moving onto prismatic cells with lithium-iron-phosphate (LFP), currently led by China’s CATL as top EV makers Tesla and Volkswagen adopted prismatic type earlier in 2021.
• The Korean players, both Samsung SDI and SK On, have turned attention to the rectangular packaging after Volkswagen announced in March 2021 that up to 80% of its electric vehicles by 2030 would use prismatic batteries. In July 2022, Volkswagen Group announced the setup of its first battery cell factory in Salzgitter, Germany. It unveiled the prismatic unified cell would be used in up to 80% of its models. The plant is expected to start production by 2025, and the new cell plant, nicknamed SalzGiga, is expected to reach an annual capacity of 40 GWh, enough for about 500,000 electric vehicles.
• Hence, owing to the above points, prismatic cell segment is likely to see significant growth in the market during the forecast period.

Asia Pacific Expected to see Significant the Market Growth

• Asia-Pacific region is the biggest manufacturer and exporter of consumer electronics mainly dominated by China owing to its large production capabilities. The region is expected to continue to dominate the consumer electronics manufacturing sector, during the forecast period. Hence, the Asia-Pacific battery market is expected to majorly benefit from the growth of the consumer electronics sector.
• China is one of the leading countries in the world, that manufacture and utilizes batteries in a wide range of applications. In 2020, China manufactured nearly 76% of the global lithium-ion battery and 44% of the global electric vehicles. Further, the country is a hub of the electronic sector, i.e, nearly 48.4% of the total mobile phone export was from China in 2021. Hence, it indicates China is a significant market player in the battery cell industry.
• South Korea is a major consumer of cylindrical cells and prismatic cells, which are primarily used in consumer electronics, household items, and electric vehicle batteries. Amid concerns about an anticipated slowdown in South Korea’s semiconductor exports in recent years, batteries for electric vehicles are emerging as a new pillar, which is likely to propel the country’s economy in the coming years.
• In July 2022, GODI announced that it has become the first company in India to receive Bureau of Indian Standard (BIS) certification for its 21700. Cylindrical NMC811 3.65V-4.5Ah lithium-ion cells. Furthermore, the company has announced to set up a lithium-ion cell manufacturing factory by 2024. The newly certified cells are likely to cater to the needs of the EV and Energy Storage Systems (ESS) sectors in India. Thus, such upcoming investments are likely to drive the battery cell market in India during the forecast period.
• Hence, owing to the above points, Asia pacific is expected to see significant market growth in the Battery cell market during the forecast period.

Competitive Landscape

The Global Battery cell market is fragmented. Some of the key players in this market (in no particular order) include LG Chem Ltd, Contemporary Amperex Technology Co. Limited, BYD Company Limited, GS Yuasa Corporation, Clarios, and Panasonic Corporation.​

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