West Europe Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

West Europe Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The West Europe battery market is expected to rise at a CAGR of more than 5% during the forecast period of 2020-2025. Factors such as increasing the adoption of electric vehicles in the region and the countries' future outlook towards the cleaner source energy are likely going to drive the West Europe battery market. However, the variation in the prices of battery raw materials due to mismatch demand and supply is expected to restrain the market during the forecast period.

• The lithium-ion battery segment, due to the significant reduction in the manufacturing and retail cost, has become more accessible to the people in use, such as in mobile phones and other electronic devices, and is likely going to be the fastest-growing segment in the West Europe battery market.
• In 2018, the German government announced around EUR 1 billion to support battery cell production at home and in Europe as a part to take 30% of global market share by 2030. This is likely going to create several opportunities for West Europe battery market in the future.
• Germany, owing to its increasing renewable energy installation to phase out from the conventional fuel to cleaner energy source, is expected to be the largest market for the West Europe battery market during the forecast period.

• Lithium-ion batteries are a rechargeable type of battery that is commonly used in electronic devices and energy vehicles. These batteries also being used for the storage of energy from renewable energy sources such as solar and wind.
• The energy densities of these batteries are quite high and have a round trip efficiency of 85% to 95%, which means the ratio of energy output/released to energy input/stored. The lithium-ion battery is a low maintenance battery, and the cells of the battery cause little harm to the environment when disposed of.
• Moreover, the countries in the region are wanted domestic investment and manufacturers. Countries such as Germany and France have planned to decrease the dominance of Asia-Pacific companies in the European region, which is affecting the local companies' involvement in the area.
• In March 2020, Total S.A, French oil major announced the launch of a battery-based energy storage project in Mardyck, at the Flandres Center, in Dunkirk’s port district. The storage capacity of the storage system is expected to be 25 megawatt-hours (MWh) and output of 25 MW of power. The storage system is planned to be using lithium-ion battery energy storage and is expected to be commissioned by the end of 2020.
• In 2019, European Lithium started developing its wholly-owned Wolfsberg Lithium Project, which is located in Carinthia, south of Vienna, Austria. The project comprises 22 original and 32 overlapping exploration licenses and a mining license over 11 mining areas issued by the Austrian mining authority. The project is expected to boost the domestic lithium-ion battery market in the Western Europe region.
• Hence, owing to the above points, the lithium-ion segment is likely going to be the fastest-growing segment in the West Europe battery market during the forecast period.

• Germany being the largest economy of the European Union, has been attracting investments from other countries across the globe for the development of the batteries manufacturing facilities.
• Moreover, the government has targeted increasing the installed renewable energy capacity and has planned to generate 40% to 45% of the total energy consumption from renewable energy by 2025. This is likely going to drive the battery market as batteries can be used to store extra power generated from renewable. In 2019, Germany's total installed solar capacity was 48.962 gigawatts (GW), compared to 45.181 gigawatts (GW)in 2018,
• The automotive industry in Germany is witnessing rapid growth in the electric vehicles market, thus driving the country's battery market. Moreover, in February 2020 government of Germany officially announced to increase in environmental bonus on electric vehicles (EV) with its publication in the German Federal Gazette. The new subsidy rates apply to all vehicles registered after 4th November 2019, and the directive will expire on 31 December 2025 or when the budget is exhausted. This step by the government is expected to attract consumers and is likely to attract investment by major players.
• In 2019, Germany and France entered into a partnership to invest in Europe's production of EV batteries. The target is to build two production facilities over four years, one plant in Germany and France.
• In 2019, the German Federal Ministry of Education and Research (BMBF) opened a battery cell research production center that may serve as a new R&D and large-scale industrial manufacturing plants. The facility's objective is to facilitate the mass production of lithium-ion cells within the country and reduce imports.
• Hence, owing to the above points, Germany is expected to dominate the West Europe battery market during the forecast period.

The West Europe battery market is fragmented. Some of the key players in this market Toshiba Corp, Contemporary Amperex Technology Co. Limited, BYD Company Ltd., Panasonic Corporation, and Duracell Inc.

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