Market Trends of Nickel-based Batteries For Electric Vehicles Industry
Battery Electric Vehicle Segment Anticipated to Dominate the Market
The rising demand for sustainable transportation and cleaner energy has increased the demand for battery electric vehicles. Promotional activities and government legislation are solving consumer constraints such as vehicle range, greater upfront prices, limited model availability, and lack of knowledge. These factors are expected to impact the demand for battery electric vehicles, which will drive the nickel-based batteries for the electric vehicles market.
- Battery-electric vehicle sales reached an estimated 7.3 million in 2022, up from around 4.6 million in 2021. BEV sales have soared due to several factors, including an increased consumer interest in more sustainable transport and governmental regulations to curb direct transport emissions. In 2021, these sales more than doubled compared to 2020, and 2022 witnessed a new record in all-electric sales volume.
Nickel plays a vital role in electric vehicle batteries. It is used in the production of electric batteries. This material is used as the basis for lithium-ion batteries, which are a very common energy source in electric vehicles. Moreover, nickel weighting in battery electric vehicles jumped 8% yearly to an average of 25.3 kilograms in July 2023 as carmakers continue to opt for high-nickel batteries for long-range, performance, and many entry-level new models.
In recent years, a few automakers have been gradually developing business strategies that take electrification into account to increase market share and keep a competitive edge. Companies have kept their stance in a way to comply with policy regulations or in response to government incentives. Companies have also announced their plans with a greater choice of models to be rolled out sooner over the coming years, propelling the nickel-based batteries market over the forecast period.
- Toyota, the world’s largest car manufacturer, plans to roll out 30 BEV models by 2030. The company aims for 3.5 million annual sales of electric cars. Lexus aims to achieve 100% BEV sales globally in 2035.
- Volkswagen announced that all-electric vehicle sales would exceed 70% of its European and 50% of its Chinese and US sales by 2030. By 2040, nearly 100% of vehicles should be zero-emissions. On the other hand, Volvo is committed to becoming a fully electric car company by 2030.
Owing to these factors, the adoption of nickel-based batteries in electric vehicles is increasing globally. Such positive trends are expected to enhance the growth of the nickel-based batteries market over the forecast period.
Asia-Pacific Region is Expected to Dominate the Target Market
Asia-Pacific is expected to have a majority share in the global nickel-based batteries market. Rising disposable income and an increase in GDP in the region are driving the market. Ease of manufacturing auto parts, vehicle sales, growing government regulations, and robust expansion adopted by original equipment manufacturers and suppliers in the region to accommodate rising demand from the automotive industry across the region are expected to create a positive outlook for the market during the forecast period.
China is one of the largest markets for electric vehicles, and the increasing adoption of electric vehicles in the country has been in line with the clean energy policy. Moreover, the Chinese government has been providing both financial and non-financial incentives to promote the adoption of electric vehicles.
- For instance, in 2022, China produced around 5.47 million battery-electric vehicles, an increase of 85.8% compared to 2021. In the same year, around 1.59 million plug-in hybrid cars were produced in China, an increase of 164.2% compared to the previous year.
Furthermore, the Government of India is targeting the conversion of two and three-wheelers into 100% electric ones and the total automotive sales to 30% into e-mobility by 2030. Currently, India is dependent on other countries to source EV batteries, which has resulted in the hiked price of EVs. The penetration of EVs in the Indian automotive sector is expected to bolster indigenous manufacturing of Li-Ion batteries and make them economically viable.
- In June 2023, Japan’s Ministry of Economy, Trade, and Industry announced that it would invest JPY 127.6 billion (USD 900 million) in Toyota Motor Corporation and other companies for seven projects relating to the technical development and capital investment for storage batteries and their parts.
Due to such developments, the electric vehicles industry is expected to see significant growth and create opportunities for the nickel-based batteries market over the forecast period.
