New Study Sees Li-ion Car Battery Biz Nearing $8 Billion By 2015
The latest information compiled by Pike Research indicates that the growing demand for Lithium-ion (Li-ion) batteries -- primarily in new automotive applications -- will cause the market for these "transportation related" cells to expand from a projected $878 million in 2010 to nearly $8 billion by 2015. In its report, "Electric Vehicle Batteries," Pike sees the greatest opportunity for growth in the Li-ion battery industry coming from skyrocketing demand for those required by plug-in hybrid and pure EV models which presently need far larger and more expensive battery packs than those used in conventional hybrids. According to Pike senior analyst John Gartner, short term growth in the Li-ion arena as well as in the EV market in general will be spurred on by a combination government subsidies, incentives, and production goals. Garter contends that "2012 will be the make or break year for the electric vehicle market. As government support for the sector winds down, demand from consumers and businesses will need to pick up the slack, or the industry faces the risk of oversupply." The Pike study shows that pricing is destined to play a major role in the phase in of Li-ion technology. On that aspect of the business model, Gartner foresees the significant reductions on the horizon with cost of these cells and packs falling by 50 percent from $940 per kilowatt hour (kWh) in 2010 to $470 per kWh in 2015.