Executive Briefings

With Future of Lithium-Ion Battery Market Secure, Manufacturers Focus on Cutting Costs

The global market for lithium-ion batteries for vehicles is expected to grow from $7.8bn in 2015 to $30.6bn in 2024, according to a report from Navigant Research.

With Future of Lithium-Ion Battery Market Secure, Manufacturers Focus on Cutting Costs

As automotive manufacturers continue efforts to produce more vehicles with electric drivetrains, the amount of vehicles using so-called Li-ion batteries for onboard energy storage is increasing. The technology's future is expected to be secure, and automakers are now focusing on how they can reduce costs while increasing energy density and vehicle range.

"The push by automotive original equipment manufacturers and battery manufacturers to continually reduce battery pack costs continues," says William Tokash, senior research analyst with Navigant Research. "This effort, led by improving battery manufacturing processes and maturing supply chains, is anticipated to yield a market driven by battery electric vehicles (BEVs), where both large and small capacity Li-ion battery-pack-equipped vehicles have markedly improved driving ranges."

When designing electric or electrically assisted powertrains, OEMs tailor their approach to each model, factoring in economy, vehicle range, driver experience, and performance, according to the report. This approach, along with anticipated decreases in Li-ion battery costs, is expected to create a BEV market driven primarily by premium BEVs with long ranges and more affordable BEVs with higher ranges.

An executive summary of the report, Advanced Energy Storage for Automotive Applications, can be downloaded from the Navigant Research web site.

Source: Navigant Research

As automotive manufacturers continue efforts to produce more vehicles with electric drivetrains, the amount of vehicles using so-called Li-ion batteries for onboard energy storage is increasing. The technology's future is expected to be secure, and automakers are now focusing on how they can reduce costs while increasing energy density and vehicle range.

"The push by automotive original equipment manufacturers and battery manufacturers to continually reduce battery pack costs continues," says William Tokash, senior research analyst with Navigant Research. "This effort, led by improving battery manufacturing processes and maturing supply chains, is anticipated to yield a market driven by battery electric vehicles (BEVs), where both large and small capacity Li-ion battery-pack-equipped vehicles have markedly improved driving ranges."

When designing electric or electrically assisted powertrains, OEMs tailor their approach to each model, factoring in economy, vehicle range, driver experience, and performance, according to the report. This approach, along with anticipated decreases in Li-ion battery costs, is expected to create a BEV market driven primarily by premium BEVs with long ranges and more affordable BEVs with higher ranges.

An executive summary of the report, Advanced Energy Storage for Automotive Applications, can be downloaded from the Navigant Research web site.

Source: Navigant Research

With Future of Lithium-Ion Battery Market Secure, Manufacturers Focus on Cutting Costs