An electric vehicle battery is a type of energy accumulator that stores power for use by an alternating or continuous current engine. However, its significance goes well beyond this. The battery is what makes these vehicles sustainable and frees them from their reliance on fossil fuels. In the last decade, the battery industry has seen an extraordinary change. The average range of electric vehicles has significantly risen. The lowering price of lithium-ion batteries, which have dominated the market in recent years, has been a major aspect of the electric mobility revolution. With growing concerns about the environmental effects of conventional automobiles, governments all over the world are supporting the use of alternative-fuel vehicles. EVs are zero-emission cars that are becoming popular for clean public transportation in several nations. To stimulate the adoption of EVs, some national governments provide financial incentives like tax exemptions and refunds, subsidies, reduced parking and toll rates for EVs, and free charging. As a result, the need for EV batteries is rapidly increasing. However, the rise in lead pollution from electric vehicles, high import duties on EV batteries, and volatile raw material prices are expected to hinder market growth. Additionally, advancements in lithium-ion batteries and an increase in EV charging facilities are expected to lure market attractiveness in the future.
According to the report titled "China Electric Vehicle Battery Market Research Report, 2027" published by Actual Market Research (ActualMR), the market size of the China electric vehicle battery market is increasing enormously in the forecasted period from 2022 to 2027. The China passenger vehicle segment is expanding, whereas the commercial vehicle segment is expected to grow at an exponential rate. As a result of the increased demand for EVs, major vehicle manufacturers are joining the EV industry. Several major manufacturers, including Tesla, Toyota, Tata Motors, BMW, Mercedes-Benz, Mahindra & Mahindra, and Hyundai, are developing EV cars in order to strengthen their positions in the automobile business. Aside from that, new start-ups like OLA are also involved in the EV industry. Electric vehicle development is projected to accelerate in the near future, with major manufacturers showing interest in the EV industry, which would in turn drive demand for EV batteries. When compared to lead-acid batteries, lithium batteries are more efficient and charge faster. It has a longer lifespan, is more efficient, and produces consistent, steady, and long-lasting power. As a result, this technology is gaining traction in solar energy backup systems and electric automobiles. The commercial vehicle segment is expected to drive the future demand for electric vehicle batteries as it is efficient, cost-effective and has zero emissions.
In this report, the EV battery market is segmented by propulsion type, by battery type, and by vehicle type. A BEV needs more energy absorption to meet the higher kinetic energies of a heavier vehicle, as well as a stronger roof structure to withstand higher roof crush loads. AHSS grades have more strength per unit density than competitive materials, giving BEVs an edge. A PHEV propels itself using stored electrical energy, reducing gasoline usage by the combustion engine. This opens up the possibility of driving solely in electric mode and reducing emissions in crowded cities throughout the world. The country's plug-in hybrid automobile market is progressively expanding. Electric vehicles are more efficient, and when paired with the cost of power, charging an electric vehicle is less expensive than filling it up with gasoline or diesel for your travel needs. The battery is what makes these cars sustainable and frees them from their reliance on fossil fuels.
Government incentives, the presence of individual investors, and a technological edge are bolstering demand for commercial electric vehicles. This will result in an increased demand for electric batteries for these vehicles in the forecast period. The rise in fuel prices and increasing global warming due to rising temperatures and emissions are driving the need for electric vehicles. Compactness and cost effectiveness are other features driving the EV battery market for commercial vehicles. Further, the increasing demand for plug-in vehicles, the growing need for battery-operated material-handling equipment in industries due to automation, the continued development of smart devices and the growing adoption of lithium-ion batteries in the renewable energy sector are expected to propel market demand. The major factors driving the demand for electric vehicle batteries are their peak electricity demands and their flexibility to the grid in terms of energy storage that helps overcome fluctuations in renewable energy sources.
Automotive and related sectors were hit hard due to the pandemic effects. They had to shut down facilities to manufacture EV vehicles, which resulted in a decline in EV battery demand during the period of the pandemic. They had to work in limited capacities to be in spare of government guidelines and norms. The EV battery manufacturing facilities came to a standstill due to the non-availability of raw materials, impacting the supply and demand chains harshly. The battery and other components were not easily available. However, the market has recovered and the manufacturers are now concentrating on increasing the sales of electric vehicles in the world markets. That would create demand for electric vehicle batteries in the forecast period.
The lithium-ion batteries are most commonly used in the electric vehicles. The lithium-ion battery is a type of rechargeable battery which used EV as well as in many other portable electronics. The battery has high energy density than other lead-acid and nickel-cadmium batteries. The lithium-ion batteries are the safest batteries than others and also the battery manufacturers have to ensure that the safety measures are in place to protect the consumers, in times of battery failure. In the recent years China has seen a rapid economic growth and similarly this has enabled many consumers to buy cars. As a result, this has improved the mobility and the country has become the largest automotive market in the world.
The rise of environmental issues like air pollution, high greenhouse gas emissions and the growing dependence on oil imports, the Chinese government has imposed few policies to encourage consumers to adopt the electric vehicles. However due to the high price of the EVs in the market, in 2009 the government began to provide generous subsidies for the purchases. As an end result paying for the subsidies became extremely costly for the government, because the price differential and the number of buyers were both large so it was very costly for the government itself.
As per propulsion type, the BEV (battery-electric vehicles) are expected to grow with the highest CAGR by the end of the forecasted year 2027. The electric propulsion systems EVs or BEVs, they are characterized by an electric energy conversion chain up stream consist of a battery and also an electric motor with a controller.
Key Players: CATL, BYD, Lishen Battery, Waterma Battery, Grepow Battery, Panasonic, China Aviation Lithium Battery, SK Innovation, LG Energy Solution
Considered in this report
Historic Year: 2016
Base year: 2021
Estimated year: 2022
Forecast year: 2027
Aspects covered in this report
China EV Battery Market with its value and forecast along with its segments
Application wise EV Battery industry distribution
Various drivers and challenges
On-going trends and developments
Top profiled companies
Based on By Propulsion Type:
Based on by Battery Type:
Others (Nickel Metal Hybrid, sodium ion, solid state)
Based on By Vehicle Type:
The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to electric vehicle battery industry, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
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List of Figures
Figure 1: China Electric Vehicle Battery Market Size By Value 2016 to 2027F (In USD Million)
Figure 2: China Electric Vehicle Battery Market Share By Battery Type (2016, 2021 & 2027F)
Figure 3: China Electric Vehicle Fluids Market Share By Propulsion Type (2016, 2021 & 2027F)
Figure 4: China Electric Vehicle Battery Market Share By Vehicle Type (2016, 2021 & 2027F)
Figure 5: Market Attractiveness Index, By Battery Type
Figure 6: Market Attractiveness Index, By Propulsion Type
Figure 7: Market Attractiveness Index, By Vehicle Type
Figure 8: Porter's Five Forces Meter of Electric Vehicle Battery Industry in China
List of Table
Table 1: China Electric Vehicle Battery Market Size of Lithium-ion Battery (2016 to 2027F) in USD Million
Table 2: China Electric Vehicle Battery Market Size of Lead Acid (2016 to 2027F) in USD Million
Table 3: China Electric Vehicle Battery Market Size of Others (2016 to 2027F) in USD Million
Table 4: China Electric Vehicle Battery Market Size of BEV (2016 to 2027F) in USD Million
Table 5: China Electric Vehicle Battery Market Size of PHEV (2016 to 2027F) in USD Million
Table 6: China Electric Vehicle Battery Market Size of HEV (2016 to 2027F) in USD Million
Table 7: China Electric Vehicle Battery Market Size of Passenger Vehicles (2016 to 2027F) in USD Million
Table 8: China Electric Vehicle Battery Market Size of Commercial Vehicles (2016 to 2027F) in USD Million
Table 9: Key Facts of Company 1
Table 10: Key Facts of Company 2
Table 11: Key Facts of Company 3
Table 12: Key Facts of Company 4
Table 13: Key Facts of Company 5
Table 14: Key Facts of Company 6
Table 15: Key Facts of Company 7
Table 16: Key Facts of Company 8