The global market for rechargeable batteries in electric vehicles (EV) is expected to reach new heights in the next 10 years, growing to $54 billion by 2010, up from $35 billion in 2010, says IHS iSuppli.
By 2015, lithium-ion batteries will be the leading technology occupying 55 percent of the market. Lead-acid will have 31 percent of the market, NiMH batteries will be 6 percent of the market and 1 percent will be NaS batteries.
Looking ahead to 2020, lithium-ion will only gain in its lead over the other battery technologies taking market share away from lead-acid batteries while NiMH and NaS will maintain roughly the same presence in the market.
Lithium-ion batteries will grow in demand with automotive applications. The main commercial driver will be the need for aggressive cost reductions while maintaining safety. The cost of lithium-ion rechargeable batteries is much higher than any other. However, the research notes that prices will need to drop 50 percent in order to achieve widespread market adoption.
The significant cost reductions should be possible through volume production and material improvements. As a result, lithium-ion batteries could become less expensive than standard lead-acid equivalents by 2020, concludes the study.