The environment has suffered greatly on account of numerous technological advancements that have made the lives of people easier. One such advancement was the development of vehicles. While people can now reach their desired destination in a matter of hours, the increased usage of fossil fuels for vehicles, which emit harmful gases, has led to the severe degradation of the environment. It is due to this that government agencies are increasingly trying to spread awareness for boosting the adoption of electric vehicles. Even the general public is now becoming more aware about the harmful effects of greenhouse gases on the environment.
Electric vehicles run on batteries rather than diesel or gasoline, attributed to which the demand for batteries, particularly lithium-ion (Li-ion) batteries, is rising. Li-ion batteries have high energy density and require low maintenance, which is why they are being preferred, rather than sealed lead–acid or nickel–cadmium batteries. As per a report by P&S Intelligence, the global lithium-ion battery market generated revenue of $33,720.8 million in 2018 and is expected to surpass $106,493.0 million by 2024, advancing at a 21.8% CAGR during the forecast period (2019–2024). Geographically, much of this growth would be concentrated in Asia-Pacific, in the coming years.
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There are five types of Li-ion batteries, namely lithium–nickel–cobalt– aluminium oxide, lithium–manganese oxide, lithium–cobalt oxide, lithium– iron phosphate (LFP), and lithium–nickel–manganese–cobalt oxide (Li-NMC). Out of these, LFP batteries were the most in demand in 2018, particularly due to their heavy utilization in China, which is the major user of lithium-ion batteries around the globe. The Li-NMC variants are predicted to register the fastest growth in demand in the near future, which is because these batteries have a high thermal stability, longevity, and high storage capacity, which make them a prime choice among consumer electronics and automobile manufacturers.
Apart from the automotive sector, Li-ion batteries also find a wide application in the industrial, consumer electronics, medical, aerospace & defense, and telecom sectors. Among all these, the consumer electronics sector has been the largest user of these energy storage devices in the past. Li-ion batteries are utilized for powering cameras, smartphones, MP3 players, laptops, handheld game consoles, tablets, and several other electrical and electronics devices of everyday use, including motorized toys, lamps, electric toothbrushes, vacuum cleaners, flashlights, and electric shavers. The automotive sector is expected to register the fastest growth in demand for these batteries in the coming years, which is due to the rising adoption of electric vehicles, as discussed above.
Companies in the lithium-ion battery market are focusing on increasing the energy density of energy storage devices, including lithium-ion batteries. A higher energy density of these batteries can result in the development of long-lasting batteries, by advancing their manufacturing technologies. Moreover, the demand for these energy storage devices is constantly rising from different industries, including the renewable energy sector, which is why companies are trying to enhance their properties. This is further predicted to result in the rising demand for these batteries in the coming years.
Thus, as the world shifts to cleaner forms of energy and feels the need to store it for future purposes, the sale of Li-ion batteries would continue rising.