R&D Helping Develop Better Anode Materials for Automotive Li-Ion Batteries
Key factors such as the soaring sales of electric vehicles (EVs) and reducing prices of electrode materials will drive the anode material for automotive lithium-ion (Li-ion) battery market at a CAGR of 5.7% during the forecast period (2020–2030). The market generated $707.2 million in 2019, and it is expected to reach $1,348.6 million by 2030. In recent years, academic institutions and original equipment manufacturers (OEMs) have started investing in research and development (R&D) for better anode materials than the ones currently in use.
These entities have realized that the improvement in Li-ion batteries centers on enhancing the abilities of their components. OEMs have, therefore, are partnering with and investing in the research programs of academic institutions that are working toward the development of such products. These investments facilitate the creation of batteries with a long life, high performance, high power density, low cost, and eco-friendly nature. One such way that R&D has unearthed is using different concentrations of silicon and graphite, to do away with the technical problems associated with anodes predominantly containing Li or silicon.
Globally, the Asia-Pacific (APAC) region adopted the highest quantity of anode material for automotive Li-ion batteries in 2019, and it is expected to be the largest consumer in the coming years too. This can be owed to the wide scale adoption of EVs in China, on account of the favorable government policies, infrastructural support, such as for charging station installation, subsidies and incentives, and investments in the EV industry. Moreover, the growing awareness regarding the lower total cost of ownership (TCO) of EVs in comparison to conventional vehicles and the environmental benefits of the former are fueling the demand for the min the region.
On the other hand, Europe is expected to display the fastest growth in the anode material for automotive lithium-ion battery market in the forecast period. This can be ascribed to the joint efforts by the European Union (EU), commercial lenders, and battery manufacturers to create a conducive charging ecosystem and become self-sufficient in battery manufacturing. For example, in 2018, the European Investment Bank approved a loan to Northvolt Ett to start a battery Giga factory in Sweden. Similarly, the German government is planning to increase the domestic production of Li-ion batteries for EVs.
Thus, the increasing R&D activities and reducing cost of the anode materials will ultimately fuel the sales of EVs in the foreseeable future, by making them cheaper for the masses.
Source: P&S Intelligence
