Battery Pack for Automotive 2023

The annual demand for Li-ion battery packs for xEV will grow more than 3-fold  from 2022 to 2028 to about 1.5 TWh

The total annual demand in GWh for lithium-ion battery packs for plug-in hybrid EVs (PHEV) and battery electric vehicles (BEV) will grow from around 430 GWh in 2022 to about 1,500 GWh by 2028 – more than a 3-fold increase! Demand will be driven mainly by BEV applications, which will require a battery capacity of 1,370 GWh, representing 90 % of the total market in GWh by 2028. The total annual market for Li-ion battery packs for BEV and PHEV will grow from around $70B in 2022 to about $180B, with a  16.9% CAGR2022-2028. A significant portion of the global battery pack market for the segments studied in this report (i.e., cells, battery modules & packs, battery management systems, thermal management systems, electrical interconnections, safety components, and housing) is the battery cell, representing around 55 % (for PHEV) - 70% (for BEV) of the total battery pack market. Although the cell price ($/kWh) is decreasing, the overall cell capacity per pack is increasing, thus keeping the cell’s share of the cost within a battery pack high.

Battery cell supply chain is dominated by China followed by South Korea and Japan

Currently, cell production in GWh is dominated by Asian companies, with China having a 57% market share globally for lithium-ion batteries, followed by South Korea (25%) and Japan (7%). Europe and the US are working on different approaches: Europe is investing hugely to create local cell suppliers, and US OEMs are mainly partnering with Asian suppliers. Battery manufacturing capacity is increasing rapidly. Most battery manufacturers announced expansion plans, mainly in countries that produce xEVs. Many Chinese players – such as BYD, CATL, Gotion and EVE – plan for capacity increases in Asia other than China, such as in India (BYD), Indonesia (CATL; 25 GWh by 2025), Thailand (EVE; 16 GWh by 2030), and Vietnam (Gotion; 5 GWh by 2024). Most of the capacity expansion plans are announced by China; if they all convert into reality, the cell cost may be reduced. However, this will result in long-term dependency on China and could negatively impact start-ups and small-scale battery manufacturing companies. Vertical integration in battery manufacturing is increasing for cost benefits and volume security. Battery module/pack manufacturing is a focus for both cell and car makers. To our knowledge, very few cell manufacturers or car OEMs are not vertically integrated and focus only on their own business.

Towards higher energy capacity, cost optimization, and greater safety for Battery Pack

A Li-ion battery pack's performance depends on the battery cell chemistry, cell integration choice in the vehicles, battery features (e.g., energy and power density, charge/discharge efficiency, calendar life, cycle life), and battery pack components (e.g., battery management system (BMS), thermal management system, interconnections, safety components, etc.). The most common approach to integrating cells into the vehicle is the modular approach (90% in 2022). However, an alternative approach is the cell-to-pack approach, which many battery manufacturers, such as BYD, CATL, and LG Energy Solution, are exploring. The newest way of integrating cells into the vehicle is the cells-to-chassis approach, where cells are directly integrated with the vehicle body. The most common battery cathode chemistry for high-range EVs is NMC (~55% market share in 2022). In addition, low-cost cobalt-free LFP and advanced LFP, e.g., LMFP batteries, are gaining popularity. There is a clear trend to increase the capacity per cell (in kWh), leading to an increase in the physical dimensions of the cells. The thermal management system in EVs is so crucial that many countries like China are imposing some legislation, due to which all manufacturers of EVs are forced to improve their thermal management systems to withstand the chain reaction in case of a thermal runaway for at least 5 minutes. Today, both liquid and air cooling are used in xEV battery packs. However, the share of air-cooling in e-mobility applications is decreasing. In the case of BMS, the modular master-slave design is the most used BMS topology for large packs. Although wired BMS is the industry standard today, wireless BMS shows promising advancements in making EVs lighter, more reliable, and drive farther per charge. Today, the battery recycling market is mainly driven by battery cell manufacturing scrap. However, in the coming years, tons of xEV battery packs will reach the end of life for recycling. The second-life battery will represent an additional added value for end-of-life xEV batteries

3M, ABB, Automotive Cells Company (ACC), Aptiv, Akasol, Accumotive, AESC, Amphenol, Amara Raja, Ads Tec, All Cell Technologies, Analog Devices, Amte, All Cell Technologies, Ametherm, Albemarle, Alliance Nickel, Autoliv, AVL, Audi, BTR, Batrium, Bonnen, BMW, Bmser Technology, BMZ, BYD, Boyd, Bitrode, Bosch, Carling Technologies, CALB, CATL, Canada Nickel, CelLink, Caliente, Constellium, CIC Energy Gune, Continental, C4V, Dow, Denso, Dexerials,  ETI Elektroelement, Exoes, Electrovaya, EC Power, Eaton, Elektronik, EV Energy, ETE, EV Energy, Elithion, Eagtop, Exide, Edison, Esmito, EVE, Freyr, Ford, Forsee, FSM, Freeport-Mcmoran, FAAM,  FMC, Freyr, Farasys, Furukawa Electric, Gentherm, Glencore, Ganfeng Lithium, GEM, GS Yuasa, Godi, Gotion, Gentherm, Henkel, Huawei, Hyundai, Hesse, Huayou Cobalt, Huber Automotive, Hitachi, Hydro. Interplex, Hudson, Honeywell, Idneo, Itavolt, Inobat, Iron Edison, Jonver, JFE, JCTC Terminal & Connectors,  Korepower, Kokam, Kulicke & Soffa, LG Innotek, Lishen, Laserax, Littelfuse, Legrand, Leclanché,  LG Energy Solution, Laird, Livent, Lithium Americas, Lithium Balance, Marrow, Molicel, Mercedes, Manz, Marelli, Methode Electronics, Mersen, Mahle, Manz, Modine, Magna, Morgan, Microvast, Nornickel, NEC Energy Solution, Northvolt, Narada, Nuvation Energy, Nio, NOVO, Nissan, Nemak,  Nemaska Lithium, Novelis, NXP Semiconductors, Optimum Nano, Omron, Orion BMS, Panasonic, Phase Change Material Products Ltd. (PCM Products), Pacific Engineering Corporation (PEC), Preh, Piedmont, PowerCo, Posco, Recharge Industries, Renault, Recodeal,  Rimac, Rogers Corporation,  Storm Power Components, Svolt, Stellantis, SAIC, Saint-Gobain, Samsung SDI, SK ON, SNAM, Sherritt,  Sunon, SEC Carbon Ltd., Stäubi, Startec Energy, Saft, Sensata, Schneider Electric, Sunwoda, Sgi Carbon, Terrafame, Texas Instruments, TRB Lightweight Structures, Thyssenkrupp, Tesla, TE Connectivity, TATA Motors, Total Energies, Toshiba, Teijin, Umicore,  Vale, Verkor, Volkswagen, Visteon, Volvo, Wenlind, XING Mobility, Yinlun, Yazaki, and more.v

Table of content

Glossary

Report objectives

Identity card

About the author

Companies cited

What’s on track, what's not

Methodology and Definitions

Three-page summary

Executive summary

Context

Market trends, at different levels

• Electrification driving forces
• Li-ion battery: market trends
• Main drivers for electric mobility and related battery packs
• Battery pack size per electric vehicle and plug-in electric vehicle
• Battery pack voltage and energy capacity, by application

Market forecasts

• Market forecasts – highlights
• 2018 – 2028 Li-ion cell market value for xEV
• 2018-2028 evolution of Li-ion cell ASP
• 2018 - 2028 BEV battery cell price and cost of cell-to-pack integration
• 2018– 2028 Li-ion battery pack demand for XEV (in GWh)
• 2018 – 2028 Li-ion battery pack market value for XEV (in $B)-Split by xEV types and split by battery pack components
• Battery pack for BEV Cost breakdown
• Market share of various Li-ion battery cell chemistries for EV
• Market share of various Li-ion battery cell formats for EV

Supply chain

• Battery pack Supply chain – highlights
• xEV supply chain - towards more vertical integration

Li-ion battery pack supply chain - raw materials suppliers

• Li-ion battery raw materials suppliers
• Li-ion battery raw materials supply chain is reshaping
• Top Li-ion battery raw materials producer countries

Li-ion battery pack supply chain - Li-ion battery cell, battery module and battery pack manufacturers

• Li-ion battery cell manufacturers – geographic location
• Battery pack manufacturers - geographic location
• Battery pack supply chain reshaping
• 2022 Market shares of top Lithium-ion battery manufacturers

Li-ion cell production capacity

• Cell production capacity (gigafactories) announced in Europe, USA and Asia
• How China dominates the xEV battery pack supply chain

• Global Cell production capacity (gigafactories) expansion
• Cell production capacity (gigafactories) announcements in China and Europe - comparison
• Will China increase battery manufacturing capacity way more than required

LI-ion battery supply chain – joint ventures, partnerships and merger & acquisitions

• Battery makers’ joint ventures with car makers
• Battery chemistries and formats used by various battery and car makers
• Cell supply chain– partnerships and M&A

Li-ion battery pack supply chain – other battery pack components suppliers

• Battery management system suppliers – geographic overview
• Thermal management solution suppliers - geographic overview
• Electrical interconnection - geographic overview
• Safety components suppliers - geographic overview
• Battery pack housing suppliers - geographic overview

Battery recycling – supply chain

• Li-ion battery recycling companies – geographic overview
• EV battery recycling projects/announcements in Europe
• Li-ion battery recycling supply chain is reshaping
• Li-ion battery recycling and 2^nd life applications– partnerships, M&A, and joint ventures

Battery swapping – supply chain

Li-ion battery pack - technology trends

• Battery pack technology - highlights
• Key technology trends
• Battery pack components
• Battery pack voltage and energy capacity range in EVs
• Li-ion battery packs – manufacturing process flow
• Three main axes of innovation in batteries
• Battery cells for EVs - global trends
• Li-ion Battery pack for XEV – global trends

Li-ion Battery cell technology

Li-ion cell chemistries

• Different Li-ion battery cells – Comparative table
• Comparative graph of energy density for different Li-ion battery cells
• Technology trends: NMC cells
• Technology trends - LFP cells
• Technology trends in LFP cells - Towards higher energy density
• Li-ion battery anode materials technology trends
• Main Battery chemistries used in xEV – technology trends

Li-ion cell formats

• Main battery formats Used In EV – technology trends

Li-ion battery pack - technology trends

Three ways to install cells into vehicles– technology trends

• Cell To module; cell to pack; cell to chassis

Battery management system (BMS) technology

• Battery management systems- Main functions
• Battery cell balancing
• Sensors
• Wireless BMS

Thermal management system technology

• Battery temperature affects xEV performance
• Safety issues related to Li-ion batteries – Thermal runaway (TR)
• Battery safety legislation
• Types and requirements of thermal management systems
• Trend towards a holistic approach
• EV thermal management trends
• Active thermal management system
• Thermal management system – technology trends

Electrical interconnection technology

• What would be an ideal interconnect solution?
• Market shares of different cell interconnect technologies- 2022
• Electrical interconnection– technology trends

Safety components (fuses, Circuit Breakers and Contactors)

• Various solutions of circuit protection (safety components) in xEV
• Battery safety component trends overview

Battery pack housing technology

• Battery pack housing – technology trends 

Technology trends – higher integration & extended battery packs

• Technology trends: integration choices in BEVs
• Technology trends: extended battery packs

Technology trends - 800 V battery pack

Technology trends – Li-ion Battery recycling

Technology trends - battery swapping

Beyond the Li-ion battery

Conclusion

Key Features

• 2018-2028 market forecasts for battery packs for BEV and PHEV.
• Illustrate the battery pack supply chain landscape
• Discuss market opportunities for players that supply materials, devices, or technology solutions to the Li-ion battery pack industry.
• Provide insight into different technologies currently used in battery packs, their components, and related technology trends.
• Provide insight into different approaches to recycling end-of-life batteries.
• Discuss the B00V battery system technology and extended battery pack

Product objectives

• Provide market metrics and forecasts for battery packs for BEV and PHEV.
• Demonstrate the strong, consistently growing potential for battery pack players, such as suppliers of cells, battery modules, battery packs, safety components, battery management systems, thermal management solutions, and housing materials for PHEV and BEV battery packs.
• Illustrate the battery pack supply chain landscape, including the key players for battery cells, battery modules and packs, battery pack components, and associated business models.
• Discuss market opportunities for players that supply materials, devices, or technology solutions to the Li-ion battery pack industry.
• Provide insight into different technologies currently used in battery packs, their components, and related technology trends.
• Provide insight into different approaches to recycling end-of-life batteries.
• Discuss the 800 V battery system technology and extended battery pack

What's new?

• Discuss battery swapping
• Discuss beyond Li-ion battery
• Provide insight into battery pack expansion plans in the USA, Europe, and Asia and the impact of the overproduction of batteries in China.
• Discuss how China dominates the xEV battery pack market