With increasing interest in electric vehicles (EVs) All around the globe, the market for lithium-ion EV batteries is now $27 billion per year business. According to experts, high demand has boosted battery manufacturers’ profits and brought heavy competition to the market. And by 2027, the market could further grow to $127 billion as consumers welcomes more affordable EVs. Let’s talk about few important point to understand future for EVs.
💎 𝘼𝙨𝙞𝙖 𝙞𝙨 𝙩𝙝𝙚 𝙥𝙤𝙬𝙚𝙧𝙝𝙤𝙪𝙨𝙚 𝙬𝙝𝙚𝙣 𝙞𝙩 𝙘𝙤𝙢𝙚𝙨 𝙩𝙤 𝙗𝙖𝙩𝙩𝙚𝙧𝙮 𝙥𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣
Besides being a manufacturing powerhouse of vehicle parts, Asia is fast becoming a hotbed for innovation in the battery sector. No wonder, the top 10 EV battery manufacturers by market share are all headquartered in Asian countries, concentrated in China, Japan, and South Korea.
Top 3 are :CATL-> 32.5% (China) LG Energy Solution-> 21.5% ( Korea ) Panasonic-> 14.7% ( Japan ) combine for nearly 70% of the EV battery manufacturing market.
💪 𝘾𝙝𝙞𝙣𝙚𝙨𝙚 𝘿𝙤𝙢𝙞𝙣𝙖𝙣𝙘𝙚: China counts for nearly 50% of battery productions. The Chinese company CATL provides lithium iron phosphate (LFP) batteries to Tesla, Peugeot, Hyundai, Honda, BMW, Toyota, Volkswagen, and Volvo, and shares in the company gained 160% in 2020, lifting CATL’s market capitalization to almost $186 billion. No.4 battery producer in the world is from china as well which is backed by warren buffet.
📰 𝙐.𝙎. 𝙖𝙣𝙙 𝙀𝙪𝙧𝙤𝙥𝙚’𝙨 𝙋𝙡𝙖𝙣𝙨: Joe Biden’s strategy to make the US a powerhouse in EVs includes boosting domestic production of batteries. European is also looking to reduce decades of growing reliance on China. As Western countries speed up, new players are expected to rise to increase competition in this sector. A host of next-generation battery Technologies are already being developed by American companies, including Ionic Materials, Quantum cape, Silla Nanotech, Sion Power, and, Sionic Energy.
Any direction the market moves, certainly the forecast is bright for battery producers.
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