Since 2010, the world has been talking about delivering cleaner energy that poses no danger to the environment. However, things were stagnant for years, with people turning a blind eye to the matter. In late 2020 and 2021, there has been a rapid shift towards the planet’s cleaner energy sector. And one of the most common strategies involves the increasing popularity of electric vehicles.
A lot of details have come to the public regarding electric vehicles and the outlook of this sector. But many investors would love to understand which sector stands to gain the most in the EV move and the increased popularity of lithium-ion batteries. For a start, what do you mean by lithium batteries? These are batteries with a recharge function and are most popular in electronic and electric vehicles. Lithium batteries are popular in various industries, automotive and consumer electronics. It is the source of the power of most of the things that you use daily, including tablets, smartphones, notebooks, and laptops.
In 2019, statics show that the market size behind lithium-ion batteries ranked at $36.7 bn. And this rating is expected to rise by 18% reading up to $129.3 bn. The central question is what will drive this almost impossible increase? EVs increase in popularity is the obvious answer in this case. Reliable sources and market trends indicate that EVs’ sales will grow up to 23 mn by 2030. These ranks are 30% more than the current deals in the market. India is also expected to increase from the two mn mark in the present time.
From a Bloomberg report, China is the biggest supply of lithium-ion batteries with a 72 Gwh demand. The country controls 80% of the refining raw materials, 60% of component manufacturing, and 77% of the world’s cell capacity. Japan and Korea and also ranked among the top best, with India ranking at the 16th position. Lithium’s demand keeps rising, but the world’s leading reserves are yet to commercialize the resources successfully. Some of the biggest-known reserves include Bolivia, Chile, the US, China, and Australia.
Currently, India has quadrupled its imports of Lithium-ion batteries and tripled the import bill on the product. Indian imports of the batteries ranged to $712 mn but fell between 2019 and 2020 to $450 mn. The country imports Lithium-ion batteries from the top supplies, including China, India, and South Korea.
Lithium-ion battery making involves three steps. The first step is manufacturing a cell to a battery pack whose value add is 40%, followed by cell manufacturing with 30% value addition. The final step involves the manufacturing of battery chemicals.
Many companies in India have expressed an interest in manufacturing Lithium-ion batteries. And the Government has offered incentives on the same. Lithium manufacturing still needs more research, but the industry plays a significant role in the EVs sector.https://loshijosdelamalinche.com/