Fact.MR’s recently published electric vehicle battery report forecasts the market to expand at a whopping 25% CAGR, reaching US$ 900 Bn by the end of the 2021-2031 assessment period. Short-term prospects also appear highly lucrative, with a CAGR of 13.6% projected until 2022.

Historical data suggests that the market expanded healthily from 2016 to 2020, registering an impressive 12% CAGR. Although a general contraction in the automotive industry was experienced in the past half-a-decade, this didn’t appear to dampen the electric vehicle battery market growth prospects. The market closed in at US$ 91 Bn as of 2020.

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Electric vehicle battery sales have been influenced by a significant increase in demand for zero-emission vehicles, given the rising fuel prices, depletion of fossil fuel reserves, and tightening pollution rules. The growing development of new battery chemistries for electric cars is expected to boost the global electric vehicle battery industry. Preference for lithium-nickel-manganese-cobalt-aluminum oxide (NMCA) alloys because of their better energy density and a longer life cycle is increasing, opening new growth avenues.

Key takeaways from the Market study

• Global EV battery market to expand nearly 10x by 2031
• By vehicle type, demand for EV batteries across passenger cars to capture 50% of global sales
• Stored electricity electric vehicle batteries to expand at over 10% CAGR
• Europe likely to account for over 3 out of 10 electric vehicle battery sales
• Asia to emerge as the dominant market, with China accounting for 28.3% of the revenue
• India to be an opportunistic market, poised to grow at a CAGR of 15% through 2031

“As vehicular emission regulations tighten, automobile owners are shifting towards hybrid and electric vehicles usage, prompting manufacturers to deploy batteries equipped with greater load carrying capacity,” says a Fact.MR analyst.

How are new Plug-in EV Models Driving Market Demand?

Across the globe, the electric car market is expanding at a breakneck pace. As a result of the increased demand for EVs, major vehicle manufacturers are entering the market, which is ultimately expected to stimulate demand for EV batteries in the long-run.

Prominent manufacturers, including Toyota, Tata Motors, Mercedes-Benz, and Hyundai, are developing electric vehicle models to strengthen their positions in the industry. Electric car development is projected to accelerate shortly, thanks to major manufacturers’ interest in the field.

Recently, in April 2021, Toyota Motor Corporation announced the release of its new battery electric vehicle (BEV) series- Toyota bZ. A concept version of the first model in the series, the bZ4X would be unveiled in Shanghai, while 15 BEVs, including 7 Toyota bZ BEVs, would be introduced globally by 2025.