The mushrooming requirement for electric vehicles is one of the major factors responsible for the soaring demand for automotive lithium-ion batteries across the globe. As per the observations of the International Energy Agency (IEA), “the global electric car fleet exceeded over 5.1 million in 2018 up 2.0 million in previous year”. In addition to this, the fluctuating prices of oil and gas and the rising environmental degradation caused due to the usage of oil and gas-powered automobiles are further boosting the sales of electric vehicles all over the world.
In addition to the above-mentioned factors, the increasing implementation of favorable regulations and policies by the governments of several countries is also propelling the sales of electric cars all around the world. Furthermore, the provision of various financial incentives and benefits by the governments of many countries on the purchase of electric cars is pushing up the sales of these vehicles, which is, in turn, boosting the demand for lithium-ion batteries as these batteries are extensively used for charging these cars throughout the world.
Besides the growing popularity of electric vehicles, the falling prices of these batteries are also contributing to their ballooning usage across the world. Because of these reasons, the global automotive lithium-ion battery market is predicted to record swift advancement in the forthcoming years. Lithium-ion batteries are extensively used in passenger cars, commercial vehicles, and two-wheelers. Amongst these, the utilization of these batteries was observed to be the highest in passenger cars in the past, primarily due to the large-scale manufacturing of electric cars in the major automobile manufacturing countries such as the US and China during the last few years.
Globally, the European automotive lithium-ion battery market will be very lucrative in the coming years, according to the estimates of PS Intelligence, a market research company based in India. This is attributed to the rising sales of electric vehicles in the region, primarily on account of the presence of favorable government policies. Furthermore, the European Union (EU) has partnered with commercial lenders and battery manufacturing companies for developing an ecosystem that will make the region completely self-sufficient in automotive battery manufacturing in the near future.
The biggest example of such joint efforts is the recent approval granted by the European Investment Bank (EIB) for the provision of a loan worth $392.0 million to NorthvoltEtt for setting up a battery manufacturing Gigafactory in Sweden. Similarly, the German government is also planning to increase the domestic manufacturing of automotive battery cells in the near future to make the country self-sufficient in lithium-ion battery production. These factors will boost the sales of automotive lithium-ion batteries in Europe in the years to come.