Announcement of joint venture with Geely Auto Group by LG Chem for the production of electric vehicle batteries is expected to expand their foothold in china’s EV market which will fuel the global Electric Vehicle Battery Market in future timeline
Global: South Korean battery maker LG Chem Ltd had signed an agreement to set up a joint venture with China’s Geely Automobile Holdings Ltd to produce batteries for electric vehicles. The 50:50 joint venture plans later this year to begin construction of a battery plant in China with an annual production capacity of 10GWh. The joint venture would have an annual production capacity of 10 GWh by the end of 2021, and its products would be supplied to Geely‘s electric vehicles from 2022. The venture will give the South Korean company a firmer foothold in the world's largest EV market and will secure Geely a stable supply of high-quality batteries. LG Chem already has an EV battery plant in China's Jiangsu province and has another factory under development in the same region.
According to BlueWeave Consulting, Growing concerns related to decreasing oil and gas resources and degrading environmental conditions are positively influencing the global EV battery industry. An electric vehicle battery is a rechargeable battery. An electric vehicle battery or traction battery powers the propulsion of battery electric vehicles in the market. Electric vehicle vehicles rely upon electric batteries to give the essential or the auxiliary power. An electric fueled vehicle or battery electric vehicle utilizes a mixture of energy pack up in rechargeable battery packs for control. Other important advantages of EV batteries are their low price, an increased lifecycle or great functioning under normal parameters in harsh environments.
Due to EV batteries’ low weight, increased energy storage capacity and low price, compared to other battery technologies, they might be one of the best solutions for systems with high energy storage capacity. Additionally, EV batteries tend to have a lower center of gravity which makes them less likely to roll over and they have a lower risk for major fires or explosions and the body construction and durability of EVs may make them safer in a collision. Increasing global concerns regarding the negative effect of climate change coupled with rising pollution levels recorded in major developed and developing countries have drawn an alarming situation for the demand of electric vehicles which will foster demand of global electric vehicles batteries in next few years.
According to BlueWeave consulting’s report, Titled-“ 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. Additionally, governments’ regulations, particularly pollution prone countries have initiated supportive policies and programs to produce and adopt electric vehicles, which is surging the demand for global electric vehicles battery market over the forecast span.
Moreover, rising 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 electric vehicles battery market.