High Voltage Battery Market Trends

Growth Drivers

• Growing Demand in the Automotive Industry – Batteries are an important part of the automotive industry. It is a power supply device that assists in starting the vehicle. Despite supply chain issues and rising prices, global SUV sales also increased, growing by about 3% from 2021 to 2022. By 2022, SUVs will account for about 46% of new car sales worldwide.
• Increased Sales of Electric Vehicles Battery – All-electric vehicles, plug-in hybrid electric vehicles (PHEW), and hybrid electric vehicles require an energy storage device (usually a battery). Batteries serve as an alternative to diesel and gasoline and are responsible for the entire purpose of the car. New model launches, rising oil prices, and targeted regulatory support drove electric vehicle sales up in all high voltage battery market. Global sales of electric vehicles will increase by nearly 60% in 2022 from 6.6 million in 2021, surpassing 10 million for the first time.
• Reducing Battery Cost – In the past few times, there has been a decline in the price of batteries primarily driven by advancements in technology, economies of scale, and increased manufacturing efficiency. These declining costs have made electric vehicles more affordable for consumers and have boosted the demand for high-voltage batteries worldwide.

Challenges

• Negative Impact on Environment – The raw material which is required for the production of batteries, such as lead, cobalt, and others are rare earth minerals. These are extracted through the process of mining which adversely impacts the surrounding the area of mine. However, the production of batteries requires huge amounts of water, as the production of 1 ton of lithium requires nearly 2 million tons of water. Furthermore, even the aftermath of using batteries is not environmentally sustainable. Battery corrosion releases chemicals that contaminate groundwater and surface water as well as soil. When contaminated by battery chemicals, our ecosystem which supports thousands of aquatic plants and animals is put at risk.
• Lack of adequate facilities for the manufacturing
• Shortage of charging stations for battery-operated vehicles.