To boost to electrical vehicles and renewable energy initiatives, domestic and global battery makers will be asked to bid for setting up plants in the selected states which will drive the electric vehicle battery market.
India: The government is considering a plan to establish a battery making capacity of 40 gigawatts (GW). It will ask states to compete for the opportunity to set up internationally competitive facilities that will also service global markets. The proposal is projected to entail investments of USD 40 billion in the next two-three years and is likely to garner interest from global battery manufacturing firms and renewable energy players such as SoftBank, Tesla, and Panasonic. Bids will be judged on the basis of land, incentives, power tariff discounts and regulatory and industrial support. Plants have to be competitive so that exports are commercially viable. The large-scale battery manufacturing proposal is aimed at making storage systems competitive in India so electric vehicle adoption becomes more viable. With plans to add 175 GW renewable energy generation capacity by 2022 and ensure that 30% of India’s vehicles are electrically powered by 2030, the demand for battery storage is pegged at 300 GW.
According to BlueWeave Consulting, the market for EV batteries has developed significantly over the past decade, with manufacturers focusing research on introducing cost-effective solutions to be used in automobiles. The electric vehicle market in India is anticipated to create lucrative opportunities for electric vehicle manufacturers as well as for vehicle component manufacturers in the near future. The demand for electric vehicles is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles.
Increasing demand for environment-friendly vehicles is driving the Electric Vehicle Market which will consecutively propel the EV Battery Market. Declining crude oil reserves and issues concerning deprivation of the environment are the main factors fuelling the expansion of electric vehicle battery industry. Electric vehicles (EVs) are the inevitable future of the automotive industry. The market for electric vehicles depends heavily upon the development of its primary component, i.e. the EV battery. However, incentives and subsidies on the utilization of such a vehicle is a new factor propelling expansion for electric power drive vehicles. In the current market scenario, policy support is among the major factors driving the electric vehicle battery market, as policies have been lowering the barriers for electric vehicles adaptation.
India’s renewable energy sector is expected to attract investments of up to US$ 80 billion in the next four years. The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. In 2018, India ranked 5th in installed renewable energy capacity. The Government of India is committed to augmented use of clean energy sources and is already undertaking numerous large-scale sustainable power projects and promoting green energy heavily. Moreover, technological advancements in electric vehicles and infrastructure with proactive government initiatives are expected to unfold various opportunities for the growth of the electric vehicle and infrastructure market in the future.
According to the recently published report by BlueWeave Consulting on “Global Electric Vehicle Battery Market, by Battery Type (Lithium-ion Battery, Lead Acid Battery, Nickel Metal Hydride Battery, and Others), by Vehicle Technology (BEV, PHEV and HEV), by Vehicle Type (Passenger Car, Commercial Car and Two Wheeler), by Region (North America,Asia Pacific, Europe, Latin America, and Middle East & Africa); Size and Forecast, 2014-2025,” Global Electric Vehicle Battery market is expected to grow with a CAGR over 19% during the forecast period 2018-2025, owing to increasing demand for environment-friendly vehicles. Diseases caused by air and water pollution are epidemic among minorities. Environmental pollution causes more than three times of death than malaria, tuberculosis, and AIDs, countries such as India and China records the maximum death caused by environmental pollution. Pollution causes 7% of the medical expenses among middle-income group people across the world. According to World Bank air pollution cost in India was approximately 8% of its GDP or USD 560 billion in 2013. Hence, raising public awareness of air quality and the burden of disease caused by air pollution is an essential step in reducing air pollution and improving public health which is accelerating market demand for the electric vehicles battery market.
According to the recently published report by BlueWeave Consulting on “India Lithium-ion Battery Market, By Type(Lithium Cobalt Oxide, Lithium Manganese Oxide, Lithium Iron Phosphate and Others), By Components (Cathode, Anode, Electrolytic Solution, Others) By Application (Consumer Electronics, Industrial and Automotive), by Region; Size and Forecast, 2014-2025,” India Lithium-ion Battery market is expected to grow with a CAGR over 23% during the forecast period 2018-2025. Increasing pollution concerns, rising adoption of electric vehicles, increasing income-levels and surging demand for quality and uninterrupted power are some of the key factors driving the growth of Lithium-ion batteries market in India. The growing consumer electronics market is complimenting the growth of Lithium-ion batteries market in India owing to its light-weight, high energy, and power capacity features. Moreover, increasing awareness towards portable and stationary energy storage coupled with the government’s push towards solar and wind projects are expected to contribute to the growth of the lithium-ion battery market over the projected period.