The Future of Lithium-ion Batteries for Electric Vehicles

The power for creating a better future is contained in the present moment: We create a good future by creating a good present.

Thankfully, there are environmentalists who practice this sage advice of Eckhart Tolle, and put their money where their mouth is. Their multi-pronged efforts towards sustainable growth have gradually begun to slow down the destruction of planet Earth, and holds a promise of a brighter future.

One such positive effort is the invention of Electric Vehicles (EV) that are powered by lithium-ion batteries. In one masterstroke, they address two burning issues:

Firstly, halting the degradation caused by the mammoth CO2 emissions given out by vehicles that run on diesel and gasoline. These fossil fuels along-with coal, are the biggest contributors to global climate change, accounting for over 75% of global greenhouse gas emissions and nearly 90% of all CO2 emissions.

The second issue addressed by EVs: Saving on fast depleting non-renewable natural resources. The hitherto indiscriminate use of fossil fuels that have been burnt up for running millions of vehicles worldwide, has caused it to be used up at an alarming rate, that’s exponentially higher than its ‘regrowth’ rate.

EVs indeed come as a ray of hope, to save our planet for future generations. There is a slow but sure transition to Electric Vehicles taking place, whether it is Bicycles, Two-wheelers, Three-wheelers, Cars, Passenger Vehicles, Light Commercial Vehicles, Tractors, or even niche vehicles like Golf Carts, Forklifts, and Marine Transportation. Our efforts of today, present a tangible lifeline to a sustainable future.

Numbers never lie, and so in order to gauge the future of lithium-ion batteries for Electric Vehicles, let’s first crunch some relevant numbers to understand where we are and where the world is going from here.

Beginning with our own country India, the lithium-ion battery size is estimated to be USD 2.48 billion for 2023 and is expected to reach USD 5.49 billion by 2028, which is an encouraging CAGR of 17.21% for the forecast period (2023-2028). Our Ministry of Road Transport and Highways, stated that India had over 1.8 million Electric Vehicles as of December 2022. Over half of India's EVs were three-wheelers, numbered in the thousands. The electric vehicle market in India is quickly evolving, and it is predicted that by 2035, the car market will be entirely electric – A bright future indeed!

The good news is that vehicle manufacturers who earlier imported battery cells from China or South Korea, now have the convenience of more suitable home-grown lithium-ion batteries from Battrixx – India’s pioneers of future energy. Battrixx understands Indian roads and weather conditions, and through in-depth research, has used its cutting-edge, customized Battery Management System (BMS) to design batteries that best suit Indian conditions, applying proprietary algorithms to perfectly align with your needs.

There is indeed a light at the end of the tunnel, as India slowly but surely progresses towards cleaner and greener transport solutions!

Moving on to the global arena, let’s review the trajectory of EVs and their inseparable counterparts – lithium-ion batteries.

The global lithium-ion battery market size which was estimated at USD 58.61 billion in 2021, is expected to surpass USD 278.27 billion by 2030 – clinching a robust CAGR of 18.9% from 2022-2030. By 2024, the market for lithium-ion batteries is expected to grow to a value of USD 90.01 billion. During the forecast period 2020-2026, the market is likely to see a healthy CAGR of 20%, thanks to the flourishing EV industry, high consumer electronics demand, penchant for smart electronics, increasing inclination for smart wearables, and falling lithium-ion battery prices.

Focussing on transportation, governments worldwide are framing policies and giving subsidies to encourage the transition to EVs, in a bid to reducing the use of gasoline and diesel-powered vehicles by 2030. This gives rise to the expectation that EVs will steadily and significantly replace vehicles powered by fossil fuel, in the near future. Taking cue, several industries have hopped on to the bandwagon. We have for example, the electric battery plant near Nissan’s Sunderland plant in Northeast England, as the car manufacturer has committed to increase EV production. In Ellesmere port facility, Stellantis (the owner of Vauxhall) invested £100 million (about $139 million) for transforming the plant to produce EVs only. There has been a surge in the electric car market space in recent years and the demand has resulted in competition among several manufacturers of EVs such as Tesla, Volkswagen, GM, SK Innovation, and LG Chem. In general, global sales of Electric Vehicles which exceeded expectations in 2020, have been steadily rising; brightening the hope of a greener planet.

The numbers have spoken – the verdict is explicit: Lithium-ion is steadily moving from the peripheries of the transport sector, to globally occupy centre stage in the foreseeable future. The environmental reasons are indeed compelling, as earth’s citizens must do their bit for the planet, if it is to be habitable for future generations.

However, there are also other reasons that are fueling the transition to EVs. Lithium-ion batteries that power EVs are indeed a value for money option, because vis-à-vis standard lead-acid batteries, they are three times more efficient and last up to 20 years. Furthermore, the cost of these batteries is decreasing because of technological advances. According to Bloomberg, a kilowatt-hour of battery electricity, which in 2010 cost more than $1100 USD, came down to merely $156 USD and is predicted to be about $100 USD by the end of 2023. These batteries are therefore finding many takers, because with cost-efficient lithium-ion batteries you get to breathe easier literally and figuratively, as these batteries are also easy on your wallet.

With the environmental crisis gaining gigantic proportions, EVs have proved to be the best alternative of the Internal Combustion Engine (ICE) vehicles. High storage density is part of lithium-ion’s success story. While solid-state battery technology is in its infancy, lithium-ion technology currently provides the best potential balance of energy storage capacity, volume, and mass for Electric Vehicles. It also offers the added advantages of high voltage, easy recharging, and long lifespan. All this promises a bright future for lithium-ion batteries for EVs.

Our analysis of the future of lithium-ion batteries cannot be complete without examining the important matter of installing Electrical Vehicle Charging Stations (EVCS), and the related issues of grid overloading and load forecasting, charging time, and traffic-crowd management at charging stations. These challenges, are sought to be addressed through various technologies including newer lithium-ion battery charging strategies, and BMS. Governments have also reduced tax on EVs and given subsidies for installing charging stations, in a bid to counter these challenges. This trend is expected to continue globally, and hopes to resolve EVCS related issues.

In conclusion, we can safely say, that the future of lithium-ion batteries for Electric Vehicles is indeed bright. Governments, car manufacturers, environmentalists, and Earth itself, are all rooting for the transition to EVs. Afterall, the earth is our common home and we must address its cries. We owe it to our future generations to do what it takes today, to ensure they too get to enjoy the habitable earth that we inherited.

Visit our website https://www.battrixx.com and check out our commitment to greener, cleaner, energy systems, that have a lot to offer you to strengthen your efforts to save our planet. The future belongs to Electric Vehicles powered by lithium-ion batteries. Our allegiance to sustainable innovation ensures that we consistently improve our lithium-ion battery packs, to keep constantly ahead of the safety curve.

With our ear to the ground, our in-depth research ensures your safety whether for e-Bikes, e-scooters, e-rickshaws, Electric Cars, e-Buses, e-Light Commercial Vehicles, e-Tractors, e-Golf Carts, e-Forklifts, and even e-Marine Transportation – Battrixx lithium-ion batteries cater to them all. Explore the multi-faceted benefits of our batteries that even power Portable Devices, UPS, and Telecommunication Systems.

With our advanced Battery Management System we offer bespoke energy solutions to suit your requirements… and your purse! Enjoy the advantages of scalability of capacity and voltage, that meet your preferences in terms of space, range and budget, while ensuring uncompromised safety and excellent performance.