Southeast Asia Lithium-ion Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Southeast Asia Lithium-ion Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Southeast Asian lithium-ion battery market was valued at USD 540 million in 2019, and it is anticipated to reach USD 1150 million by 2026, registering a CAGR of about 13.9% during 2021-2026. The COVID-19 pandemic in Southeast Asian region has led to a slight decline in the overall lithium-ion battery market due to the lockdown restrictions and supply chain disruptions in lithium-ion battery manufacturing. Factors such as declining lithium-ion battery prices and the increasing demand from automotive, telecom sectors, etc. (due to the advantages that lithium-ion battery posses when compared to other battery types) are expected to drive the lithium-ion battery market in Southeast Asian region during the forecast period. Despite the growing demand for lithium-ion batteries in automotive, and telecommunications sectors, the battery energy storage segment is expected to witness stagnant growth, as most of the countries are dependent on other alternatives for energy storage. This, in turn, is likely to hinder the growth of the lithium-ion battery market in the energy storage segment during the forecast period.

Key Highlights

• The automotive segment is expected to dominate the market during the forecast period, owing to the increasing demand for new vehicles produced in the Southeast Asian region.
• Plans to integrate renewable energy with the national grids in respective countries are expected to create significant amount of opportunities for the lithium-ion battery manufacturers and suppliers in the near future.
• Thailand is expected to dominate the market, owing to the increasing demand from the various sectors, especially automotive sector.

Key Market TrendsAutomotive Sector to Dominate the Market

• Vehicles with internal combustion engines (ICE) were the only types used earlier. ICE vehicles have been using lead-acid batteries, and they may continue to do so, with no significant replacement available. However, nowadays, technology has been shifting toward electric vehicles due to the rising concerns about the environment. In EVs, mostly lithium-ion batteries are used, as they provide high energy density and low self-discharge and need low maintenance.
• Lithium-ion battery systems propel plug-in hybrid and electric vehicles. Owing to their high energy density, fast recharge capability, and high discharge power, lithium-ion batteries are the only available technology capable of meeting the OEM requirements for vehicles' driving range and charging time. Lead-based traction batteries are not competitive for use in full-hybrid electric cars or electric vehicles because of their lower specific energy and higher weight.
• Moreover, the exponential decline in lithium-ion batteries' prices reduced by 79.5% from USD 668/kWh in 2013 to USD 137/kWh in 2020. The trend is likely to continue in the future, making EV affordable to a broader range of economic groups in the region.​
• The sales of new vehicles in Southeast Asia's largest markets, i.e., Thailand, Brunei, Indonesia, Malaysia, the Philippines, Vietnam, Myanmar, and Singapore, combined, due to the adverse effect of the COVID-19, fell by 29% to 2,453,808 units in 2020 from 3,458,476 units in 2019.
• Furthermore, in 2021, the Singapore government released an announcement targeting to deploy 60,000 electric vehicles (EV) charging points across Singapore by 2030, which comprise 40,000 in public car-parks and 20,000 in private premises. The government is also planning to roll out several measures which will target to cease new diesel car and taxi registrations from 2025 and requires all new car and taxi vehicles to be of cleaner-energy models from 2030, and all vehicles to be powered by cleaner source of energy.
• Such plans are expected to support the demand for lithium-ion batteries in the automotive sector during the forecast period.​

Thailand Expected to Dominate the Market

• Thailand offers huge investment potential for the automotive sector. The country has a leading automotive production base in the ASEAN. In 50 years, the country has developed from an auto components assembler into a top automotive manufacturing and export hub.​
• Moreover, the country is expected to witness high growth in the EV segment, particularly the plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs). For instance, in 2019, the Thailand government was focusing on incentivizing eco car makers to launch more eco EVs, especially the hybrid type. Like other EV models, these eco EVs will also get an excise tax reduction, making retail prices more affordable. This, in turn, is expected to create a significant amount of opportunities for lithium-ion battery manufacturers in the coming years.
• Additionally, Thailand, under the National Electric Vehicle Policy Committee (NEVPC) roadmap, is looking to add between 60,000 to 110,000 EVs annually until 2022. This will then increase to between 100,000 to 300,000 by 2025 and finally between 400,000 and 750,000 by 2026.​
• To meet the target, the government in November 2020, announced a tax incentive for EV manufacturing. Under the incentive, PHEV projects worth at least THB 5 billion would be eligible to receive a three-year corporate tax holiday, whereas BEV projects worth THB 5 billion will receive an eight-year corporate tax holiday.​ Such projects are likely to create positive impact for the EV market, which, in turn, increases the demand for lithium-ion battery market in the country.
• Moreover, in April 2021, EVLOMO Inc. and Rojana Industrial Park Public Co., Ltd. (ROJNA) announced plans to setup 8 GWH lithium battery plant in the Eastern Economic Corridor (EEC) of Thailand. Together, the companies will invest up to a total of USD 1.06 billion through a new joint venture company.
• Therefore, based on the above-mentioned factors, Thailand is expected to dominate the lithium-ion battery market in Southeast Asian region during the forecast period.

Competitive Landscape

The Southeast Asia lithium-ion battery market is fragmented. Some of the major players include BYD Co. Ltd., LiRON LIB Power Pte Ltd, Saft Groupe SA, Samsung SDI Co., Ltd., and GS Yuasa Corporation.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
BYD Co. Ltd.
LG Chem Ltd.
Contemporary Amperex Technology Co Ltd
LiRON LIB Power Pte Ltd
Saft Groupe SA
Samsung SDI Co., Ltd.
Murata Manufacturing Co., Ltd.
Panasonic Corporation
GS Yuasa Corporation
Tesla, Inc.

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.