Business Opportunities for EV Batteries: This article is about Business Opportunities for EV Batteries. In India, the automobile industry has been contributing a lot to the economy, providing employment, government revenues, and in providing support to small and large businesses. The automobile industry is going through a transformation phase as everyone is shifting to electric vehicles. Thus, the future of the automobile industry is electric vehicles.
Lithium-ion batteries have played a major role in electric vehicles as they can be used for operating or using electric vehicles without producing any carbon emissions. Lithium-ion batteries are the solution to make society petroleum products free and have an endless capacity to fulfill customers’ needs.
It is expected that the Global demand for lithium-ion batteries will increase up to 11 times between 2020 to 2030, which will reach more than 2 terawatt-hours by 2030. The demand for lithium-ion battery is increasing as it has become a major component of the electric vehicle. With the increase in demand for electric vehicles, the requirement for lithium-ion batteries will also increase.
The lithium battery market is growing very fast. In 2020, the total market size of lithium batteries was $ 40.5 billion and is expected to increase to $ 91.9 billion.
Market Status of EV Batteries
The market value of electric vehicle batteries has been increasing globally. In the year 2017, the market value was $ 23 billion. It is expected that in 2025 the value will reach up to $ 84 billion with a CAGR of 17.2% from 2018 to 2025. Over the past 2 decades, the development of lithium-ion technology has taken the growth rate.
Nickel Metal Hybrid batteries are used in hybrid batteries vehicles and the manufacturers have now started increasing the use of lithium-ion batteries and power plug-in Hybrid electric vehicles as well as in electrical batteries. Lithium-ion batteries are better and technologically advanced as they have a high energy density, higher charge retention capacity, and require minimal maintenance. Automakers are introducing battery electric vehicles and plug-in Hybrid electric vehicles in the market as it has more potential and the product suitable for the transforming market.
Battery: A Secondary Power Source
A lithium-ion battery has become a secondary rechargeable battery. These latest batteries have chemical components that can be recharged through renewable energy and do not have any emission and creates no pollution at all.
Batteries Powering the Propulsion of EVs
For the past few years, consumers have been demanding more electric batteries or plug-in vehicles, because they do not require any fuel, petrol, diesel, or gas to operate. The major component that attracts consumers a lot is that it has no cost of maintenance and reduces the consumer’s total cost.
As per the German Federal motor transport authority, there is an increase of 61% in plug-in EV sales in 2018 which was comparatively higher than in 2017. Therefore the major benefits of electric vehicles are that they are environment-friendly and cost-effective and are the major driver for the growth of the EV industry globally.
Challenges in EV Industry
The electric vehicle market is having huge opportunities as the market is growing rapidly. With such extraordinary returns from the market, companies are investing a lot in the latest technologies and inventions. Even though the returns are high, it has a lot of challenges such as:
- It is important for the manufacturer to create a battery pack that provides more range.
- The company requires constant support from the technician team.
- With the growth of the industry, the competition is also rising day by day, so the current players need to meet the current standards.
- Manufacturers are working hard to make their products unique and desirable for the customers.
- One of the most crucial challenges that companies are facing is the lack of infrastructure.
- Even though the companies are investing a lot, still there is a huge requirement of capital and time to make the infrastructure stronger.
- Companies also have to work on the range and the variety of electric vehicles.
- Although companies are investing a lot and promoting electric vehicles, people around the globe are unaware of the existence of electric vehicles.
Conclusion
So, we have discussed a lot about Business Opportunities for EV Batteries. Here, we have analyzed how the latest batteries have changed the whole market and scenario for electric vehicles.
Our manufacturers, scientists, and researchers are working very hard to make improvements in the current technology and product which have increased range, better efficiency, and backup. This will increase the confidence of the consumer in electric vehicles. Our government is providing a lot of support and help in terms of various kinds of subsidies and schemes. There are a lot of existing companies as well as many new startups that have entered this segment and catering to the needs of Indian customers. We hope that all these efforts will help in creating the best electric vehicle ecosystem in the world.
