![]() ![]() Moreover, companies have been focusing on investing in R&D, in order to increase productivity and efficiency, which is expected to increase the demand for Li-ion variants. Since the impact of the pandemic was high in the region, the requirements could not be fulfilled, which resulted in limited production, leading to a decline in the business in various countries during the pandemic. This condition has exposed the overdependency on the region for key materials. Thus, battery manufacturers in developed countries were majorly impacted by the shutdown of operations in APAC during the COVID-19 pandemic. Key components for batteries are majorly manufactured in APAC. Furthermore, the decreasing prices of EVs due to increasing number of government policies and subsidies which, in turn, will also drive the need for Li-ion batteries. The expanding middle-class population, changing lifestyle preferences, the booming demand for electric vehicles, rapid technological advancements, and surging inclination toward smart electronic devices are the primary factors for the market expansion. These factors will cumulatively drive the requirements for Li-ion cells in the coming years.ĪPAC accounted for the largest revenue share, more than 50%, in 2022. Additionally, falling battery costs, due to the construction of a number of large-scale manufacturing plants mainly in APAC, Europe, and North America, will result in the lower cost of electric automobiles. By keeping this in consideration, various countries are offering subsidies for EVs. In the current scenario, batteries are the main factor for the high cost of EVs as compared to ICE vehicles. Moreover, this sector is the largest user of such power sources, due to the increasing demand for electric automobiles as an alternative to conventional fuel-based automobiles. The increasing focus of major developing and developed countries to reduce carbon emissions and shift from conventional internal combustion engine (ICE) vehicles to EVs are the major factors driving the demand for these power sources in the automotive sector. In the automotive industry Li-ion generated the highest revenue, around $16 billion, in 2022 in the market. This is due to the increasing adoption of electric vehicles, the decreasing costs of Li-ion batteries, the surging government initiatives, and the rising number of innovations. The rising demand for such products has increased rapidly across industries, predominantly in manufacturing and automotive. As opposed to disposable batteries, which make use of metallic lithium as the electrode, lithium-ion batteries (LIB) employ intercalated lithium compound as the electrode. Things like smartphones to power tools, electric vehicles to aerospace parts is driven by such batteries. Since these are light weight, have a high energy density to extend battery life, and can be recharged, their use is expanding across a variety of applications. Li-ion batteries are mostly used in hybrid and electric vehicles as well as in computers and cellphones. The lithium-ion battery market size was valued at $49.6 billion in 2022, and it is expected to grow at a CAGR of 16.3% during 2022–2030, to reach $165.6 billion by 2030.
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