Securing energy resources against volatility in the oil industry and reducing transportation emissions in line with clean energy initiatives are among the top agenda items for many countries across the world. While electric vehicles (EVs) will remain a niche market through the current decade, the growth of EVs will play a significant role in both these areas as the global automotive industry continues to move away from the internal combustion engine and toward electric drivetrains. Key to this shift for auto manufacturers will be continued advancement in the capabilities of electric vehicles' batteries, led by lithium ion (Li-ion) chemistries. The engineering of safe, reliable, and economical Li-ion batteries and the convergence of the automotive industry toward battery power will reshape the industry as it moves toward electrification. According to a recent report from cleantech market intelligence firm Pike Research, as manufacturing efficiencies improve and access to lithium expands, the installed cost of Li-ion batteries will fall by more than one-third by the end of 2017.
Revenue in the market for Li-ion batteries for transportation will grow over 700%, from $2.0 billion annually in 2011 to greater than $14.6 billion by 2017.
"The market for Li-ion batteries will be driven primarily by plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs), which require much larger battery packs than hybrids," says research director John Gartner. "Battery chemistries that prioritize energy capacity over power density can satisfy both the PHEV and EV battery segments, enabling vendors to offer products to multiple vendors for multiple models. Reducing the installed price of EV batteries to $523 per kilowatt hour in 2017 will be a critical step towards making PEVs cost-competitive with petroleum-powered vehicles."
Today, while most plug-in electric vehicles have achieved ranges between 40 and 100 miles, concerns over range and the availability of charging infrastructure remain among the biggest impediments to the wider adoption of automotive Li-ion batteries. Achieving higher energy density, better safety, and greater discharge/charge rates linger on the supply-side despite advances in battery technology. No ideal Li-ion chemistry solution has yet emerged, despite the availability of a number to choose from, and tradeoffs must be made by manufacturers choosing any particular type of Li-ion battery.
Pike Research's "Electric Vehicle Batteries" report outlines the critical role that governments will play in establishing the electric vehicle market, and the challenges that manufacturers face standing on their own as government influence diminishes. The study examines the status of R&D in batteries, the key market drivers for the electrification of vehicles, the impact of declining battery production costs on vehicle sales, and the resale of batteries after their useful life in vehicles. An abstract and free sample of the report is available for free from Global Information Inc.
Next Generation Batteries 2012 Conference July 19-20, 2012
For further networking and discussion around advancements in lithium-ion battery market, register now for the Next Generation Batteries 2012 Conference in Boston, MA, July 19-20, 2012.
Attendees will learn more about breakthroughs in new battery chemistries, novel electrode and electrolyte materials, system integration for a vast array of mobile, portable and stationary applications, from micro medical devices to high-energy/high-power automotive. These advances have established the roadmap for an emerging market with unlimited potential. Will lithium-ion batteries deliver on the promises of power, energy, cost and safety in commercially available systems? Does the future lay somewhere beyond lithium-based chemistries?
A panel of leading experts in the fields of battery materials, systems design and integration, and manufacturing and commercial applications will look into issues emerging at this pivotal time for the industry.
Discover more automotive market research reports:
About Global Information Inc. Global Information (GII) (http://www.giiresearch.com) is an information service company partnering with over 300 research companies around the world. Global Information has been in the business of distributing technical and market research for more than 25 years. Expanded from its original headquarters in Japan, Global Information now has offices in Korea, Taiwan, Singapore, Europe and the United States.
SOURCE Global Information, Inc.