A new report from Pike Research shows that the market for Li-ion batteries in light duty vehicles will increase to almost $22 billion in 2020 from $1.6 billion in 2012.
Over the past years the lithium ion battery industry has improved and expanded, with battery cell manufacturers adding new plants to incorporate advanced production techniques and automakers significantly increasing their R&D efforts on EVs.
“The Li-ion battery looks set to be the chemistry of choice for the on-board energy storage market for the foreseeable future, taking over from nickel-metal hydride, which has been the preferred battery for hybrids to date,” says senior research analyst David Alexander.
Automakers and battery cell manufacturers are currently struggling to find solutions to cut the costs of EVs so that more customers could afford to buy them. But the only change to be done to decrease the price of the car, is to manufacture a cheaper battery pack, as this is the most important factor in determining the final price. According to the report, the price of the battery pack will be reduced to about $447 per kilowatt-hour by 2020.
“Li-ion batteries can supply the much greater capacity needed for battery electric and plug-in hybrid vehicles, and 2012 saw the launch and announcement of new models from many manufacturers, all featuring Li-ion batteries,” said David Alexander.