Riding the xEV battery wave: exploring opportunities in the booming market

With the worldwide battery market rising rapidly, China's surplus battery production is raising concerns both domestically and abroad.

OUTLINE:

• The Li-ion battery packs market for BEV[1] and PHEV[2] is forecast to hit US$188 billion by 2029, with an 11.6% CAGR between 2023 and 2029.
• The Asian market is dominated by China: China holds a 60% market share in Li-ion battery production, followed by South Korea at 25% and Japan at 7%.
• Li-ion batteries require BMS[3] for performance. Wired BMS is standard, with wireless options promising lighter, more reliable EVs[4].

The global market for Li-ion battery packs is expected to grow significantly, primarily driven by the rising adoption of BEVs. The market value for Li-ion battery packs is forecast to grow from around US$97 billion in 2023 to about US$188 billion in 2029, reflecting a CAGR of 11.6%. A sizeable portion of the global battery pack component market will be driven by the battery cell, representing around 55% of the total battery pack market for PHEVs and 70% for BEVs.

According to Shalu Agarwal , Ph.D., Senior Technology & Market Analyst, Power Electronics and Battery at Yole Group : “Despite a decrease in cell price per kWh, the overall cell capacity per pack is increasing, maintaining the high-cost share of cells within a battery pack. This underscores the crucial role of Li-ion batteries in the shift toward sustainable transportation solutions and the escalating demand for efficient and reliable battery technology in the automotive industry.”

In this dynamic context, Yole Group has developed a comprehensive battery pack technology & market report with metrics and forecasts for the automotive market segment. In its new Battery Pack for xEV report, analysts offer an in-depth overview of all battery pack components used in BEVs and PHEVs. It includes thorough analyses from the cell level to the final battery pack, covering the entire supply chain, market forecasts, and technology trends for all battery pack components in the automotive industry. The new report also details the impact of shrinking Lithium prices on the battery market. In addition, it covers immersion cooling and provides valuable insights into recycling end-of-life batteries, including the effects of various cell chemistries, formats, and integration methods.

Optimizing Li-ion battery packs entails a multifaceted approach, considering factors like manufacturing, materials, safety features, and structural design. The pack's performance hinges on cell chemistry, vehicle integration, and key components such as the BMS, thermal management system, interconnections, and safety mechanisms.

“The modular approach where multiple modules composed of various cells are connected to make the final battery pack remains mainstream for cell integration (~80% market share in 2023); however, another approach to building a battery pack, the cell-to-pack approach, where battery cells integrate directly into a pack is growing and had a 20% market share in 2023, while alternatives like the cell-to-chassis method are also emerging,” asserts Shalu Agarwal. “Though NMC[5] cathode chemistry dominates high-range EVs, cobalt-free options like LFP[6] and advanced variants are gaining traction due to concerns over the stability of the nickel and cobalt supply.”

Enhancing longevity and efficiency necessitates a robust BMS, commonly employing a modular master-slave topology. While wired BMS is standard, wireless iterations show promise, reducing weight and enhancing reliability for extended driving range.

Electrical interconnections vary across xEV[7] battery pack levels; cell-level connections typically use wires, while modules employ busbars or high-power cables. Busbars are favored by many for their potential to minimize pack height and bolster thermal conductivity.

Maintaining Li-ion batteries within safe temperature bounds is critical, with liquid cooling predominant in xEV packs. As the battery recycling market burgeons, end-of-life xEV packs offer significant potential. Repurposing batteries for second-life applications can add substantial value to recycling efforts alongside traditional routes utilizing manufacturing scrap.

The Yole Group has been covering battery technologies and markets for some time. This year, the market research & strategy consulting company provides a special focus on batteries for automotive applications. Learn more about this market segment, its challenges and dynamics with a dedicated article: EV batteries: balancing innovation and supply chain challenges.

Yole Group invites you to follow the battery technologies, related devices, applications, and markets on www.yolegroup.com.

In this regard, do not miss the numerous upcoming events and Yole Group’s presentations:

• PCIM EUROPE, from June 11 to 13 in Nuremberg, Germany. More information about Yole Group’s presentations: HERE.

• THE BATTERY SHOW EUROPE, from June 18 to 20 in Stuttgart, Germany. Discover Yole Group’s presentation:

Empowering tomorrow: Aligning market trends with advanced thermal management systems and cutting-edge battery technologies in electric vehicles

Speaker: Shalu Agarwal, Senior Technology & Market Analyst, Power Electronics and Battery at Yole Group.

Interested in an on-site meeting with us? Send a request to [email protected].

Stay tuned!

[1] BEV: Battery Electric Vehicle

[2] PHEV: Plug-In Hybrid Electric Vehicle

[3] BMS: Battery Management System

[4] EV: Electric Vehicle

[5] NMC: Lithium nickel manganese cobalt oxides

[6] LFP: Lithium Iron Phosphate – LiFePO4 (battery cell)

[7] xEV: Electric Vehicles including Battery Electric Vehicle (BEV) and Plug-in Hybrid Electric Vehicle (PHEV)

Source: www.yolegroup.com