Lithium Ion Batteries – Exponential Growth

Lithium Ion Batteries - Exponential Growth

In just a span of 26 years Lithium Ion batteries have carved a niche for themselves in the global market.

According to a research report published in January 2017 by Markets and Markets, the Lithium Ion battery sector is expected to be valued at USD 68.97 Billion by 2022, which represents 16.6% compound annual growth rate (CAGR) between 2016 and 2022.

Factors driving the growth of the market includes strict government mandates on fuel economy, an increase in demand for electric vehicles (EV), along with smart devices and other consumer electronics that use lithium ion batteries as a primary power source. The heavy power capacity of the batteries, ranging from 3000 mAh to 10000 mAh, makes them even suitable for the use in EVs and many other industrial applications. 

Electric vehicles have seen a tremendous rise in use of Lithium Ion batteries. As per Navigant Consulting report it’s predicted that “worldwide revenue from li-ion batteries for EVs will grow from less than $6 billion in 2014 to more than $26.1 billion in 2023.”

David Alexander, senior research analyst with Navigant Research, said:

“The shift to lithium ion represents a major endorsement of the ability of this chemistry to perform consistently in an automotive environment. Most of the major automakers have introduced battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) models in the last two years, almost all of which use lithium ion batteries for onboard energy storage.”

The next big growth area for Lithium Ion batteries is grid-scale battery installations needed for energy storage. Global sales of energy storage systems that typically require Lithium Ion batteries are expected to triple from less than $2 billion in 2015 to roughly $6 billion by 2020. Lithium Ion batteries are deemed critical to the development of energy storage, sometimes considered the “holy grail” of renewable energy because its ability to store electricity from intermittent sources of energy such as solar and wind.

Apart from Global market, Indian Lithium Ion batteries market will also see growth at a higher pace in the near future as Government of India has also come up with new policies, which favors the Lithium Ion battery manufacturers and suppliers in India. Investments in clean and renewable sources of energy and Make in India campaign launched by the Government of India are also expected to result in a considerable demand for Lithium- Ion batteries in India by 2020. The major areas where Li – Ion batteries will see an increased demand in the near future in India are Electric Vehicles,Smart city projects and Green Energy Corridor for power generation

On the whole, growth of Lithium –Ion batteries is on a take off stage which would eventually cover a large portion of the market, thus substituting the traditional batteries in the coming years.

G.S Marjara
Business Head,
Future Hi Tech Batteries Ltd