The advancement of technology in the 21st century is revolutionizing the way we commute. Whether its public transport or owned vehicles, automobile manufacturers across the world are prioritizing the environment before coming up with a design. EV battery manufacturing is the latest innovation, creating waves in the automotive domain to create and maintain a sustainable environment and safeguard life on the planet.
The EV Battery Manufacturing Market Size
As per a recent study, the EV battery industry is expected to reach a global market size of $900 bn by 2031.
Speaking of the Indian EV battery market, a significant growth was seen during 2015-2020 period. The scenario looks favorable for India, and the market is expected to grow at a CAGR of nearly 30% between 2021 and 2026. The forecast period itself recorded a CAGR of over 15%, and is set to grow severalfold despite the recent pandemic posing a degree of hiccup.
As per a recent report, the Indian lithium-ion battery market was valued at $1.66 billion in 2020, and is estimated to touch the $4.85 billion mark by 2027. This enormous surge registers a CAGR of 17.23% for the 2022-2027 forecast period.
The drastic effects of the recent COVID-19 pandemic has triggered a sudden upheaval of EV battery manufacturing in India and worldwide. The strict global lockdowns, including the shutdown of manufacturing industries disrupting the supply chains and production schedules has caused a significant decline in the production and demand for light vehicles.
The 20% decline in overall revenue, including India, combined with a paradigm shift in consumers’ purchasing behavior will continue to have significant consequences for the automotive industry.
All this will combine to give the EV battery manufacturing process a thrust that will transform the automotive manufacturing industry and consumer demand forever.
EV Batteries Market Segmentation
There has been a meticulous research to divide the entire EV battery industry based on several aspects. EV battery market is segmented on the basis of:
|Type||Vehicle Type||Vehicle Class||Top Speed||Vehicle Drive Type|
|Battery Electric Vehicle||Two-Wheelers||Mid-Priced||Less Than 100 MPH||Front Wheel Drive|
|Plug-in Hybrid Electric Vehicle||Passenger Cars||Luxury||100 to 125 MPH||Rear Wheel Drive|
|Fuel Cell Electric Vehicle||Commercial Vehicles||More Than 125 MPH||All Wheel Drive|
The EV batteries industry has gone a step further to segment the industry by region, including North America, Europe, Asia-Pacific, and LAMEA comprising of Latin America, Middle East, and Africa.
The Significance of EV Batteries
The enormous growth of EV battery manufacturing companies across the world is due to the energy various storage systems like batteries provide for hybrid electric vehicles, plug-in hybrid electric vehicles, and all-electric vehicles. Leading automotive brands opt for EV battery manufacturing process that includes Lithium-Ion batteries, Nickel-metal hydride batteries, and Lead-acid batteries to design and develop electric vehicles that provide comprehensive features and the energy to enhance vehicle performance and battery durability.
While Lithium-Ion batteries offer high energy per unit mass, high energy efficiency, and excellent high temperature performance, Nickel-metal hydride batteries offer specific power capabilities and longer life cycle. Ultracapacitors are other popular types of EV batteries that increase the energy storage capacity as the liquid’s surface area increases.
Growth Drivers for EV Battery Manufacturing in India
The Indian EV battery manufacturing market witnessed an enormous growth from 2015 to 2020, and the current trend estimates the market to grow at a CAGR of 20% from 2021 to 2026. Taking into account the recent pandemic and the rising negative impact fuel-based vehicles have on the health and the environment, the nation’s leading battery makers are doing all that it takes under the sun to cater to the demands of the automotive industry.
India has also witnessed a significant growth in the automotive domain, leading to the development of several customizable options for installing EV batteries in buses, trucks, excavators, vans, and other commercial and passenger vehicles.
Several government initiatives provide opportunities for battery manufacturing companies like Exide Industries Limited, Luminous Power Technologies Private Limited, HBL Power Systems Limited, and others to design and develop batteries for EVs to help curb air pollution, enhance performance, and increase the lifespan of vehicles.
Exide Industries has a worldwide presence, and has the widest variety of lead-acid storage batteries globally. The company produces batteries from 2.5Ah to 20,600Ah limit, and has distributorship across 46 nations. The company also cares for the environment and recycles and reuses nearly 100% of lead delivered from its production process.
Exide is currently venturing into Lithium-Ion battery production keeping the rising and future demands in mind. It has a current capacity of 1.5 GWh, and battery packs and modules are supplied to various clients across several sectors.
Likewise, Luminous Power Technologies currently has a turnover of about INR 3.500 crore in 2019-2020. Being a subsidiary of the French company Schneider Electric, the company plans to cross the INR 6,000 crore-mark by 2025. It currently leads the operations of EV battery manufacturing in India to enhance its manufacturing capacity and boost logistics.
Luminous has currently installed over 30 lakh batteries by operating seven plants across the nation.
India EV Battery Manufacturing Market Trends
Fuel-based vehicles leave enormous amount of carbon footprint, damaging the environment and causing severe health conditions, including heart problems, respiratory issues, and others in individuals, including the young and old. The rising concerns towards this negative impact is the driving factor for the increase in demand for electric vehicles.
The customizable options for EV batteries as discussed earlier is also propelling the product demand across several diverse industries like construction, logistics, mining, transportation, and others. Apart from government initiatives promoting the adoption of electric vehicles, it has launched various subsidiaries and financial aids for purchasing electric vehicles that is positively impacting the EV battery manufacturing process across the nation.
The extensive focus on the electrification of public transport is booming the EV market growth. And an increasing number of people relying on car rental services like OLA, Uber, and others is driving the public transport system towards adopting this emerging trend. It’s creating opportunities for the introduction of electric two-wheelers and hybrid EVs that promote ecological sustainability.
The declining cost of high-capacity Li-ion batteries and the growing production of EV batteries in the nation will continue to propel EV battery manufacturing in India.
Challenges to Encounter
The EV battery manufacturing process in India is driven by a few standout advantages. The few moving parts compared to a fuel-based vehicle significantly reduce repair costs and increase the lifecycle. While this depends on the capacity of the battery, it isn’t much worrisome since EVs offer a battery life for around 10 years.
However, the challenges to encounter include weather, road conditions, and the quality of the battery pack. All these factors play a key role in determining the battery’s performance that greatly alter the age of an EV. Less awareness, lack of sufficient charging infrastructure, and lengthy charging time are some factors that cause a degree of hesitancy in consumers to buy EVs.
Every EV manufacturing company has its unique charging port that becomes a huge hurdle for setting up a universal charging ecosystem. Lack of standardization can significantly impact the growth of the EV industry in India.
Temperature can affect the EV’s performance, and can become inappropriate for use in too cold or too hot regions.
Latest Developments in the Nation’s EV Industry
The EV industry in India has opened up ample business opportunities for several automobile companies to setup their plant within the country and abroad. The Union Government and state governments have announced new EV policies to accelerate manufacturing and encourage several startups to enter the market.
The Production Linked Investment program will trigger investments of over INR 5.72 billion in five years with an incremental production of over INR 2.3 trillion. The state-specific EV policies are drafted to allot subsidies for EV production based of the size of the battery packs.
The Go Electric campaign is the latest development that encourages the adoption of EV vehicles to promote energy efficiency and eliminate the burgeoning costs of importing fossil fuels.
The EV battery manufacturing process in India is well-supported by the cohesive network of EV battery manufacturers and EV service providers working with SolutionBuggy. The renowned manufacturing consultant in the nation offers clear-cut solutions and comprehensive services to enable the EV battery manufacturing domain reach new heights.
SolutionBuggy offers several customized service packages exclusively designed for the EV industry in the nation to drive home the advantage of large-scale production and post-production facilities. Their hands-on experience in addressing the intricacies and complexities of the EV battery domain makes SolutionBuggy a name that sets a new benchmark in the industrial manufacturing domain.
Meeting global standards of production and safety with innovation to meet and exceed the dynamic requirements of the manufacturing sector in India is something the company stands by throughout the process and beyond. Check out their services and give your EV battery manufacturing process in India a kickstart the propels growth, innovation, and development beyond the borders.