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Exceeding 35% Sales Globally, Li-ion Battery Pack Demand to Swiftly Rise in Asia: Fact.MR

Revenue from Li-Ion Battery Pack Sales in Asia to Top 35% of Global Demand: Fact MR
뉴스일자: 2021-07-29

DUBAI-- July 29, 2021 -- Asia Pacific excluding Japan (APEJ) has hegemony in lithium-ion battery pack sales registered globally. Fact MR has estimated APEJ to account for 35% of global sales of lithium-ion battery pack sales through 2021.

Steering away from nickel-cadmium (NiCad) rechargeable batteries, automotive manufacturers are shifting to environment-friendly and more cost-effective lithium-ion batteries or li-ion batteries. These battery packs offer a range of benefits overshadowing key loopholes in NiCad counterparts.

Focus on repurposing batteries commonly installed in electric vehicles will help lo-ion battery pack sales to increase at a brisk pace in the coming years. Coupled with this, government initiatives undertaken to encourage sustainable energy will present a conducive environment for the market growth.

Japan to Exhibit Increasing Investment towards Li-ion Battery Capacity Expansion

Demand is expected to grow exceptionally in Japan, as the country registers increasing manufacturing of gasoline-electric hybrids. Prospects in Japan will remain impressive as investments towards production of lithium ion batteries continue increasing.

It was recently announced that Japan’s Sumitomo Metal plans to invest a whopping US$ 424 Mn to bolster battery material output in 2021. One of Japan’s biggest nickel smelters is gearing to build a new plant in Besshi, Ehime prefecture in western Japan, focusing on nickel-based cathode materials.

Nickel is a chief component found in lithium-ion rechargeable batteries commonly used to power electric vehicle (EV). With EV sales poised to soar in the coming years as the world slowly moves towards low-carbon future, demand for li-ion battery packs will increase.

Globally Increasing Focus on Clean Energy to Drive Li-ion Battery Pack Sales

Globally, the focus on strategy is on the rise. For instance, a leading li-ion battery pack company, LG Chem Ltd. collaborated with
a vehicle manufacturing company, General Motors (GM) in December 2019, to produce li-ion batteries for its electric vehicles.

Soaring environmental concerns and initiatives undertaken to curb carbon footprint from vehicles also will present opportunities for growth of li-ion battery pack sales.

For instance, the Paris Climate Change Agreement is aimed at reducing carbon footprint and greenhouse gas emission by reduci the use of fossil fuels. A number of countries are agreeing to Paris Climate Change Agreement, in turn, creating growth opportunities for the li-ion battery pack market.

“Companies operating in the market are focusing on developing highly durable batteries to cater to the increasing demand for clean source of energy from military, marine, and aerospace sector,” says a lead analyst at Fact.MR.

China to Lead the Li-Ion Battery Pack Market in Asia

According to Fact.MR, China, being the battery manufacturing powerhouse of the world, will continue leading the li-ion battery pack market in the Asia Pacific. Consistently expanding electronics and smartphone manufacturing has catapulted China to the forefront of the li-ion battery pack market in Asia.

Rising sales of electric vehicles in China will cause lithium-ion batteries pack demand to swell in the forecast period. Thanks to the increasing government subsidies on electric vehicle, li-ion battery pack market in China will grow at an accelerated pace.

Coupled with this, the presence of leading electric vehicle companies in the country such as Nissan, SAIC Motor, SAIC-GM-Wuling, NIO, Xpeng, and Li Auto will present attractive prospects for the expansion of the market.

Despite growth registered in the last few years, the outbreak of COVID-19 has restricted the production of li-ion battery packs. It has posed challenges such as shortage of workforce and insufficient raw material supply, which have significantly hampered production in the leading li-ion battery pack manufacturing country, China.

Nonetheless, manufacturing is on the path of recovery. For instance, Leoch - a leading manufacturer of batteries in China, resumed li-ion battery pack manufacturing in March 2020. This is indicative of positive growth of the market in China in the forthcoming years.

The Fact.MR study also profiles leading players in the li-ion battery pack market are:

· BYD Company Ltd.
· Sony Corporation
· GS Yuasa International Ltd.
· Hitachi Chemical Co., Ltd.
· A123 Systems LLC
· Shenzhen Huayu New Energy Technology Co., Ltd.
· LG Chem Ltd.
· NEC Corporation, Panasonic Corporation
· Johnson Controls
· Narada Power Source Co., Ltd.
· Samsung SDI Co., Ltd.
· Toshiba Corporation
· Saft
· Contemporary Amperex Technology Co.

Key Questions Answered by the Report

· The report offers insight into li-ion battery pack demand outlook for 2020-2030
· The market survey also highlights projected sales growth for the li-ion battery pack between 2020 and 2030
· Li-ion battery pack market analysis identifies key growth drivers, restraints, and other forces impacting prevailing trends and evaluation of current market size and forecast and technological advancements within the industry
· Li-ion battery pack market share analysis of the key companies within the industry and coverage of strategies such as mergers & acquisitions, collaborations or partnerships, and others



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