Lithium Ion Batteries for Electric Vehicles Will Surpass $26 Billion in Annual Revenue by 2023

April 2, 2014

Nearly all new EV models will use lithium ion technology, report concludes

The steady increase in sales of electric vehicles (EVs) has led to advances in EV batteries, particularly those using lithium ion (Li-ion) technology.  While early hybrid vehicles featured nickel-metal hydride (NiMH) batteries, Li-ion batteries have taken over, particularly in the latest generation of plug-in electric vehicles (PEVs).  Click to tweet: According to a new report from Navigant Research, worldwide revenue from Li-ion batteries for EVs will grow from less than $6 billion in 2014 to $26.1 billion in 2023.

“The shift to lithium ion represents a major endorsement of the ability of this chemistry to perform consistently in an automotive environment,” says David Alexander, senior research analyst with Navigant Research.  “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.”

Demand for Li-ion batteries will be driven primarily by BEVs throughout the forecast period thanks to the size of the battery required, according to the report.  Both hybrid EVs and PHEVs will decline slightly as a percentage of the total, while stop-start vehicles (SSVs) will see their share of the Li-ion battery market steadily increase, as a result of higher volumes of vehicle sales and the adoption of Li-ion batteries in stop-start models as the cost-per-kilowatt-hour decreases.

The report, “Electric Vehicle Batteries”, provides a detailed examination of the growing market for Li-ion batteries, including profiles of the leading Li-ion battery manufacturers and systems integrators.  It assesses the relative sizes of the battery markets for different vehicle types, as well as vehicle roadmaps and projected sales for BEVs, PHEVs, and hybrid electric vehicles (HEVs).  Global market forecasts for revenue from Li-ion batteries, segmented by vehicle type and region, extend through 2023.  The report also includes a review of the different Li-ion battery chemistries and competing technologies, such as ultracapacitors and NiMH batteries.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin


* The information contained in this press release concerning the report, “Electric Vehicle Batteries,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

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