IOC in talks with battery maker for its improved lead-acid battery
Published Date | 2019 April 19
IOC is working on new generation battery technology beside lead-acid and may get into manufacturing battery which will drive the new growth opportunities for battery market.India: Indian Oil Corporation (IOC), the nation’s largest refiner and fossil fuel retailer is in talks with battery makers to license its new technology, which boosts lead-acid battery life by 30% and cuts charging time by 40%, or jointly manufacture storage devices. State-owned IOC is researching new energy storage technology and improvising older battery technology such as lead-acid to stay relevant in a future when electric mobility is expected to eat into the company’s currently-flourishing liquid fuel business. The company’s research lab has improvised the lead acid battery and is now exploring ways to take it to the market. Company can set up their own manufacturing or they can join hands with some leading battery manufacturer in the country. Company has developed a new nano material, which when used in lead-acid battery in fixed proportion, increases the life of lead-acid battery by 30%. The improvised battery has been tested in three-wheelers. IOC is looking to set up its own manufacturing unit or joins hand with battery makers. 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. Increasing demand for environment-friendly vehicles is driving the Electric Vehicle Market which will consecutively propel the EV Battery Market. The demand for electric vehicles is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles. 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. The Lead Acid Battery market is growing with a CAGR of 18.6 %, in terms of value in 2025 due to their mature technology, high availability, and low cost. IOC chose to work on lead-acid battery as it was found more suited to Indian needs. The lead-acid battery is mature battery technology. Its raw material is available in India. Its recycling technology is available in the country. Lead-acid batteries are heavier and so limit the range of electric vehicles while lighter and fast charging lithium-ion batteries permit longer range and have thus become the key propeller of the new wave of electric vehicle that’s seeking to challenge the dominance of petrol and diesel vehicles. 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.