Lithium-ion battery market projected to surge

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The Global Lithium-Ion Battery Market Expected to Witness Significant Growth, says Visiongain Report

Market overview and projection

According to the latest Visiongain report, the global Lithium-ion Battery Market, valued at US$108.0 billion in 2022, is anticipated to grow at a compound annual growth rate (CAGR) of 14.8% between 2023-2033.

Key drivers include increasing emphasis on sustainability and responsible sourcing, propelling shifts in lithium-ion battery usage, particularly in electric vehicles (EVs) and renewable energy systems.

Government policies favour lithium-ion battery market expansion

Around the globe, government regulations are fostering the adoption of EVs and renewable energy sources, Visionagain reports. The Norwegian government’s policy for zero-emission vehicles by 2025 led to a surge in EV sales, while the US federal government offers tax rebates for EV purchases.

China also has implemented measures to encourage the development of energy storage systems. These regulations, promoting the use of EVs and renewable energy, are expected to benefit market participants by boosting the demand for lithium-ion batteries.

COVID-19 impacts and opportunities

COVID-19 has had a mixed impact on the lithium-ion battery market, the report notes. While disruptions in international supply chains and reduced demand for EVs and consumer electronics posed challenges, new opportunities arose in the healthcare and energy storage sectors.

Despite market contractions, producers found new niches in medical devices, including ventilators and wearable health monitors. The pandemic also spurred the development of improved battery technologies with enhanced safety features.

Technological advancements propel market

Rapid technological advancements are driving market innovation. Companies such as Toyota, BMW, and Volkswagen are reportedly investing in developing solid-state batteries, offering improved performance and safety compared to conventional lithium-ion batteries.

Renewable energy sources spur lithium-ion battery demand

Visiongain notes the expansion of renewable energy sources as another strong driver. Lithium-ion batteries are crucial for energy storage, managing the intermittent energy production of solar and wind sources. Large-scale energy storage projects like the Tesla-owned Hornsdale Power Reserve and microgrids in isolated locations exemplify the role of lithium-ion batteries in renewable energy infrastructure.

Potential market opportunities

Energy storage systems present a promising opportunity for lithium-ion battery manufacturers. Companies including Tesla, LG Chem, and Panasonic are already capitalising on this trend, says the report.

The aviation industry also holds potential. With a rising interest in electric propulsion systems to cut emissions and improve fuel efficiency, the development of lithium-ion battery-powered electric aircraft is underway.

IFSJ Comment

The lithium-ion battery market is set for significant growth in the next decade, driven by technology, renewable energy, government policies, and emerging market opportunities. As governments and industries continue to prioritise sustainability and renewable energy, the demand for lithium-ion batteries is expected to soar, presenting a vibrant market landscape for participants.

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