Market Trends of North Europe Battery Industry
This section covers the major market trends shaping the North Europe Battery Market according to our research experts:
The Lithium-ion Segment is Expected to Witness a Significant Growth
- North Europe is expected to be the fastest-growing market for lithium-ion battery market during the forecast period. The penetration of electric vehicles and increased usage of batteries for transportation, energy storage, and the consumer market is anticipated to provide a massive impetus for the lithium-ion battery industry's growth.
- Factors such as growing environmental concerns and decreasing oil reserves are the main factors for the increasing demand for batteries for electric vehicles. Advances in battery technology have led to faster charging, higher energy densities, and reduced battery degradation.
- Nordic countries are gaining a share in the lithium-ion battery market owing to the high usage of EVs, particularly in Norway. Norway is the largest electric vehicle market in Europe. According to IEA, the total EV sales in Norway in 2021 accounted for 153,699 units, up from 63,041 units in 2017, making Norway one of the largest EV markets in Europe.
- The demand for electric car batteries and raw materials needed for manufacturing lithium-ion batteries is expected to continue to increase in the coming years in Finland. Based on its mineral resources and other strengths, Finland has the potential to fill the cathode material needs of one large Electric Vehicle Battery (EVB) plant. This translates into a key supplier position for one or two car manufactures in Europe.
- Moreover, declining battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for lithium-ion battery technologies. Therefore the growth in the automotive industry is expected to directly impact the growth of the lithium-ion battery market in the country during the forecast period.
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Sweden is Expected to Dominate in the Market
- Sweden has a unique position to establish large-scale battery production to support Europe's transition to renewables with its clean and affordable energy, proximity to raw materials, and a strong industrial tradition.
- Sweden has one of the highest shares of energy production from renewables among EU member states. As of 2021, Sweden's installed renewable capacity stood at 34.53 GW, up from 28.18 GW in 2017. Thus adding battery capacity in Sweden helps the country stabilize the grid while reducing the carbon footprint.
- Driving the automotive industry away from oil and towards lithium-ion batteries is expected to reduce its carbon footprint and make it possible to build affordable electric cars that perform at the same level, or better, as cars with combustion engines. And Sweden is already a leader when it comes to green electricity.
- Sweden's annual EV sales have reached 138,771 vehicles in 2021 from 20,553 vehicles in 2018 showing the increased demand for battery run vehicles in the country.
- Sweden is rich in minerals and the leading mining nation in Europe. Demand for batteries in electric vehicles is surging, which leads to growing interests from foreign companies to explore Swedish lithium deposits.
- The construction of Europe's largest green battery factory is underway in Sweden. Therefore, Sweden is expected to dominate in the North Europe battery market during the forecast period.
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