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EV battery market led by LG Chem and Johnson Controls

Press Release   •   Jul 24, 2013 12:33 BST

The electric vehicle battery is a key component that controls the performance of the electric vehicles, and accounts for a dominating share of the cost of the vehicle. Nickel-metal hydride and lithium-ion batteries are the key battery types that are used in electric vehicles.

Electric vehicles (EVs) have been around in various guises since the early 1900's and have found niche markets in low power, low range applications such as milt floats and golf buggies. However, despite previous failed attempts to launch the technology they have once again come to the fore as an option for more mainstream transportation.

Lithium ion (Li-ion) batteries have become the clear leader in the emerging market for electric vehicle (EV) batteries. Steady but gradual growth in sales of electric vehicles, however, has limited opportunities for makers of advanced batteries, including Li-ion batteries.

Several companies have either entered bankruptcy or shut down, leaving a few hardy firms struggling to remain solvent until the EV market creates a growing worldwide demand for electric drive trains. LG Chem and Johnson Controls currently lead the EV battery market in terms of both strategy and execution.

The market is largely concentrated in countries such as the US, Japan, China and some European Union (EU) countries where there is an increasing adoption of electric vehicles in order to reduce carbon emissions and dependency on fossil fuels.

The reduction in battery pack cost and further improvement in battery technology is essential for the growth of the electric vehicle battery market through to 2020.

According to a recent report, 'Electric Vehicle Battery Market - Market Size, Investment Analysis, and Forecast to 2020,' a strong manufacturing base and incentives for the purchase of Electric Vehicles (EVs) will push France to the fore of the global EV battery market. EV battery market revenue in France will increase exponentially in the coming years, from a modest $380m in 2012 to $7.2 billion in 2020, representing a dramatic Compound Annual Growth Rate (CAGR) of 44.2%.

Such explosive growth will make France a major figure in the global electric vehicle battery market, with only Japan ($10.3 billion) and China ($8.5 billion) forecast to have more valuable markets by 2020.

For more information on the EV battery market, see the latest research: EV Battery Market

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