|Status : Published||Published On : May, 2021||Report Code : VRAT9601||Industry : Automotive & Transportation||Available Format :||Page : 135|
In 2019, the worldwide second-life automotive lithium-ion battery market was estimated at $480.0 million and is expected to progress during the forecast period (2020-2025) with a CAGR of 24.6 percent. The costly process of battery recycling and the increasing worldwide adoption of electric vehicles (EVs) are the main factors driving the growth of the second-life lithium-ion automotive battery industry.
Furthermore, policymakers in a number of countries are gradually enacting policies and legislation aimed at encouraging the use of electric vehicles. This is also helping to fuel sales of used car lithium-ion batteries all over the world.
• Lithium–Iron Phosphate (LFP)
• Lithium–Manganese Oxide (LMO)
• Lithium–Nickel–Manganese–Cobalt Oxide (NMC)
• Lithium–Titanate Oxide (LTO)
• Lithium–Nickel–Cobalt–Aluminum Oxide (NCA)
Based on type, the LFP segment dominated the second-life automotive lithium-ion battery market. In addition, it is also projected to remain the largest group throughout the forecast period. This is mainly due to the fact that, compared to other types of batteries, LFP batteries are safer and have a higher life span, and are favoured by many EV manufacturers, especially in China.
Based on Vehicle Type
• Passenger Car
• Commercial Vehicle
In 2019, the passenger car segment had the largest share, based on vehicle model, in the second-life automotive lithium-ion battery industry. It is also expected that the group will experience the highest growth during the forecast period and continue to hold the largest market share. This can be due to government funding for the development of new energy cars in major automotive-selling countries, such as China and the United States, and increasing demand for high-range per-charge fully electric passenger cars.
Based on Geographies
• North America
• Asia-Pacific (APAC)
• Rest of World
Throughout the historical era, APAC was the world's largest second-life market for lithium-ion automotive batteries and is projected to remain the largest market in the forecast period as well. The demand for APAC is led by China. China is currently experiencing the world's largest adoption of EVs. In addition, the country also aims to achieve a 50 percent EV share domestically by 2025. This projects a prospective market in the country for second-life batteries.
In 2019, on the basis of application, the base station segment accounted for the largest share in the second-life automotive lithium-ion battery industry. This is due to the fact that battery systems, as an aggregate and highly dispersed reserve asset for frequency containment disruptions, are increasingly used in telecommunications base stations.
In May 2018, the Strategic Action Plan for batteries in Europe was adopted. Under this initiative, it is proposed to improve the development of a battery value chain in the area, including the adoption of the extraction of raw materials, the procurement and processing of battery materials, the manufacture of cells and battery systems, as well as reuse and recycling.
The growing worldwide adoption of EVs is a major factor contributing to the high demand for EV batteries, which, in turn, is driving the growth of the market for second-life lithium-ion automotive batteries. EV sales around the world are motivated by growing concerns about environmental safety, largely due to the rising rate of ozone depletion. The automotive industry currently contributes about 43% of the total greenhouse gases released into the atmosphere.
Thus, the growing environmental concerns about the degradation of air quality caused by the increasing quantity of vehicle exhaust fumes are paving the way globally for various government initiatives to protect the environment.
Companies should industrialise and scale remanufacturing processes to minimise costs and preserve the value gap between new and used lithium-ion batteries in order to stay competitive in the face of declining costs for new lithium-ion batteries. Automakers should build their EVs with second-life applications in mind to deal with the growing number of EV models and batteries. Nissan, for example, announced a collaboration with Sumitomo Corporation to reuse Nissan Leaf battery packs for stationary distributed and utility-scale storage systems.
There are no assurances about the quality or efficiency of second-life batteries, and there are few industry guidelines that concentrate on battery management systems or state-of-health disclosures, let alone standard performance requirements for a battery that would be used for a particular application.
• SAMSUNG SDI CO. LTD.
• GS Yuasa Corporation
• BMW AG
• Nissan Motor Co. Ltd.
• LG Chem Ltd.
• Toshiba Corp.
• Hitachi Chemical Company Limited
• China Aviation Lithium Battery Company Limited
• Tesla Inc.
• Panasonic Corp.
• GS Yuasa Corporation announced in January 2020 that it had agreed to increase the manufacturing capacity of lithium-ion batteries used in electric vehicles. This will promote the growth of electric and hybrid vehicle production.
• BMW AG revealed its intention in July 2019 to double the production capacity of lithium-ion battery packs at its U.S. facility. The fourth-generation batteries will be used in the BMW X5 and upcoming BMW X3 plug-in hybrid models.
Source: VynZ Research
Source: VynZ Research