Yole Group - Battery Technology Trends

Battery technology – and energy management in general – is currently undergoing a bit of a revolution, particularly in the electric vehicles (EV) industry. At Yole Group, we’re continuously keeping track of current and future challenges at both the systems and grid levels, from solid state battery emergence to battery production capacity and energy storage optimization, all the way to lithium-ion battery dismantling and recycling. We are here to identify the latest innovations and business opportunities – all in service of achieving your objectives as a manufacturer or integrator on the battery market.

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BRINGING INTELLIGENCE TO POWER

Batteries are quite interesting, complex modules: multiple technologies are under development to increase specifications such as new Li chemistry and solid state batteries that are becoming more and more relevant, even if Li-ion batteries are very much leading the market. In addition to battery physics and chemistry, battery management systems (BMS) are becoming a critical part of the battery itself, ensuring its smooth operation and unfailing performance over time. At Yole Group, we closely follow these (r)evolutions at the battery and BMS levels, in parallel with competing technologies, to provide you with insights into what is paving the way for the future of the battery industry. As the urgency of the climate crisis becomes ever more prominent, semiconductor advancements hold the answer to transitioning to a renewably fueled world.

Semiconductor advancements have far-reaching benefits that influence several industries. An example is the Electric Vehicle (EV) segment: until recently, those batteries were large and costly, as well as inefficient. However, these challenges are being addressed with the emergence of multiple semiconductor devices that can operate at higher voltage and higher temperature, and in more difficult environments.

Our vision

STAYING CONNECTED TO THE BATTERY AND ENERGY MANAGEMENT INDUSTRY

The semiconductor content of battery systems, as well as the use of semiconductor processes to build batteries, is driven by lithium-ion and, increasingly, by sustainability requirements.

Consumer electronics have been the initial driver behind lithium-ion (Li-ion) battery sales. smartphones, laptops and other digital devices continue to be adopted (and replaced) worldwide. The declining price of Li-ion batteries is set to be one of this market’s main development opportunities in the coming years. This will have to be balanced against finite resources and the small number of countries where battery production and key materials is concentrated.

Changes in battery specification, and the need to make the battery industry sustainable, are also pushing the new technologies and investment that will help you deliver on your promises.

The recycling of end-of-life batteries can also provide an opportunity for battery recyclers to recover the valuable materials that make up the battery.

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FROM SEMICONDUCTOR TECHNOLOGIES TO BATTERIES

At Yole Group, we help you understand the holistic industrial environment of batteries in all their potential uses. We address both the battery and energy management system markets across lithium-ion and solid-state technologies, as well as emerging solutions. In addition to monitoring all semiconductor-related activity, we specifically focus on the life cycle of batteries, helping you understand the recycling process leading to their second life.

Through Yole Group’s battery activities, we offer deep insights into the rechargeable Li-ion battery market, covering the three main application segments: consumer electronics, electric mobility, and stationary energy storage. We estimate battery demand data and market value for various Li-ion battery applications.

Our analyses cover different Li-ion chemistries and their future applicative potential. Our expertise also includes cost analysis and the main challenges of various types of Li-ion batteries. The main technologies, alongside battery cell materials, formats, sizes, cell components and battery packs are also deeply investigated. Beyond the technologies themselves, we have the capability to detail the Li-ion battery supply chain, ranging from raw material supply, cell components, and manufacturing and testing equipment to battery integrators in different applications and battery recycling companies.

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LITHIUM-ION: THE BATTERY TECHNOLOGY OF CHOICE

Consumer electronics, e-mobility and stationary battery energy storage are just a few of the specialized, high-end applications that made Li-ion rechargeable batteries the technology of choice. Research and development labs, material suppliers, cell component developers, battery pack manufacturers and system integrators are all poised to improve their performance across multiple industries and applications.

Battery use and technology trends are now shifting to include larger form-factor batteries. This is especially true for electric vehicles (EV) and stationary storage, and the higher demand has catalyzed new supply chain dynamics for the materials used to make Li-ion batteries.

Sales and production of EVs continue to accelerate globally, and the double-digit annual growth expected over the next decade will strongly impact the battery market. And while the electric vehicle (EV) segment is driving the greatest and fastest growth in battery technologies, electricity production, grid management and sustainable energy systems are other areas showing strong innovation.

Overall, the global Li-ion battery market is estimated to top off at over $100 billion in 5 years, with battery energy demand projected to reach over 60 GWh.

Several players are eyeing on this opportunity, but major ones remain LG Energy Solutions, CATL, Panasonic, BYD, Samsung SDI and SK Innovations. They do represent over 90% of the market.

Key Drivers

FROM MOTION TO STORAGE: THE ELECTRIC VEHICLE (EV) FORCE ON THE BATTERY MARKET

Automakers and other mobility players continue to announce electrification strategies as electric vehicle (EV) growth is being driven by a number of interwoven factors such as rising fuel economy regulations, various governments’ CO₂ emission reduction targets, the need for cleaner air in cities and quota systems implemented by government agencies in emerging economies.

Over the past few years, government action has been matched by a flurry of investment in battery technology developers and battery pack manufacturers. Today, there are many gigafactory facilities in the pipeline across major automotive manufacturing regions in Asia, Europe and northern USA. The rising demand for Li-ion batteries has led to major battery cell suppliers – along with startup EV battery suppliers – to increase their battery production capacity.

EV manufacturers including Tesla, Volkswagen Group, BMW, General Motors and Ford are also investing billions of dollars to secure raw materials (in short, their lithium supply), diversify suppliers and expand Li-ion battery and battery pack production. These major players are devoting part of their focus to mining lithium and to the production of electrolyte and cathode materials.

Stationary storage applications continue to be propelled by the deployment of renewable sources and new demand on batteries to serve as an energy buffer in EV/HEV charging stations. Residential battery storage systems are also in growing demand thanks to residential photovoltaic installations that generate electricity for home use.

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SUPPORTING GRID OPTIMIZATION THROUGH ENERGY STORAGE

Management and storage of electricity in the grid, from production to point of use, is another area of strong growth in batteries and battery management systems. Trends toward renewable energy production requires the storage of such energy to make it readily available when the sun or wind aren’t on hand to produce the electricity houses, industries and cities need.