Report: Global EV Battery Market Could Hit $154.9B in 2028
PUNE, India – The global electric-vehicle battery market is projected to grow from $27.3 billion in 2021 to $154.9 billion in 2028 at an average rate of 28% a year, according to a new report issued by Fortune Business Insights.
The report, titled “Electric Vehicle Battery Market, 2021-2028,” shows that investments in electric vehicles by legacy automakers such as Ford Motor Co., General Motors Co. and BMW AG stand to fuel this market growth.
In 2020, the global EV battery market was valued at $21.95 billion, the report said.
In the United States, Ultium Cells LLC, a joint venture between GM and Korea-based LG Energy Solution, commissioned its first battery cell manufacturing plant in Lordstown, Ohio. The company plans to launch similar plants in Tennessee and Michigan, and potentially another site in Indiana.
Also, Honda announced last year that it would invest $4.4 billion to build an EV battery manufacturing plant near Columbus, Ohio.
According to the report, advances in new battery technology are critical to reducing the price of EVs. New research is underway to elevate battery range, improve energy storage and reduce their size to produce a more lightweight battery. This would further empower electric vehicles to compete with traditional combustion engine vehicles, the report added.
The demand for electric vehicle batteries is driven by efforts to reduce dependence on nonrenewable energy sources, the report noted. Electric vehicles are expected to play a central role in the global commitment toward attaining sustainable development goals set by the United Nations, the report said. This demand and production is further underpinned by the rising concerns regarding rampant pollution and unchecked carbon emissions that are exacerbating the effects of global warming and climate change, the report found.
Pictured at top: The Ultium Cells plant in Lordstown.
Published by The Business Journal, Youngstown, Ohio.