Lithium-Ion Battery Market to Grow at 22.58% CAGR: Report

Lithium-Ion Battery Market to Grow at 22.58% CAGR: Report

The lithium-ion (Li-Ion) battery market is expected to grow at a CAGR of approx. 22.58 percent, during the forecast period between 2018-2025, said Mordor Intelligence in its report.

Lithium-Ion Battery Market to Grow

According to the market intelligence and advisory services provider firm, the major factors driving the market includes – emergence of new and exciting markets; via electric vehicle (EV) and energy storage systems (ESS), for both commercial and residential applications, declining lithium-ion battery prices, and the rising sale of consumer electronics.

However, Mordor Intelligence further stated that, the increasing demand-supply mismatch of raw materials is likely to hinder the growth of the market studied.

As per the report highlights, automobile industry which dominated in 2018, is also likely to grow during the forecast period, on the back of its high energy density, fast recharge capability, and high discharge power, owing to which, the Li-Ion batteries are the only available technology that are capable of meeting OEM requirements for vehicle driving range and charging time.

It further added that, the recycling of Li-ion batteries is expected to secure the supply of raw materials, such as lithium and cobalt, and reduce the reliance on extracting and refining materials from mineral resources. Recycling of Li-Ion battery that is currently being used in electric vehicles (EVs) offers an excellent opportunity for companies to utilize the refined constituent materials, for manufacturing Li-Ion batteries that are to be used for Energy Storage Systems (ESS).

The other highlights of the market report includes – encouraging incentives taken by the governments, such as net metering, have encouraged the installation of rooftop solar PV systems. Battery storage is an important part of rooftop solar PV power generation process, as solar energy is intermittent and unavailable during the night.

In 2018, Asia-Pacific region dominated the global market share. Now with rising deployment of electric vehicles (EVs) in countries like – China and India, and uptick in demand for electronics with urbanization and surging power purchase parity, the usage of Li-Ion battery is expected to witness a significant growth in the region.

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Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.