Lithium-ion battery pack

Add UK-based Frost & Sullivan as the latest research firm to forecast a big jump in lithium-ion battery sales, implying that a jump in plug-in vehicle sales is in the making.

Frost & Sullivan says global li-on battery sales will jump sixfold to $12.84 billion in 2019, up from $2.13 billion in 2012. Working as a tailwind of sorts are factors such as oil-price volatility, government incentives for plug-in vehicle purchases, infrastructure improvements and lower prices that go hand-in-hand with higher production numbers. No specifics were broken out on numbers of hybrids, plug-in hybrids or electric vehicles.

Last May, Munich-based Roland Berger Strategy Consultants warned of a potential overcapacity in lithium-ion battery production, estimating that industry sales will reach $9 billion by 2015. That year, RBSC predicts, battery supply will be about twice as high as demand. AESC, LG Chem, Panasonic/Sanyo, A123 Systems and SB LiMotive will have almost three-quarters of the global lithium-ion battery market by 2015, Roland Berger said last year.

Check out Frost & Sullivan's press release below.
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Sales of Lithium-ion Batteries Soar with the Introduction of New Electric Vehicles, Finds Frost & Sullivan

Technologies that help reduce emissions and lower dependence on petrol-based energy are gaining currency

London - 20 February 2013 – The lithium-ion (Li-ion) battery market is racing ahead with the launch of eagerly awaited brands of electric vehicles (EVs) and hybrid EVs (HEVs). These types of vehicles are produced in much larger numbers than previous generations of EVs and HEVs, giving a boost to the installation of Li-ion batteries. Further, HEVs that previously used nickel-metal hydride (NiMH) technology are now shifting to Li-ion. New analysis from Frost & Sullivan (http://www.powersupplies.frost.com) Global Hybrid Electric and Electric Vehicle Lithium-ion Battery Market research finds the market earned revenues of $2.13 billion in 2012 and estimates this to reach $12.84 billion in 2019.

The persistent volatility of crude oil prices turns the spotlight on more economical alternatives such as EVs to meet transportation needs, without compromising reliability and convenience. Owing to their environment-friendliness, the Li-ion battery market has significant government support in the form of rebates, which varies according to the country, state and city.

Rebates are further determined by the actual vehicle type including (hybrid, fully electric); extended range EVs (EREVs); and battery EVs (BEVs), all of which qualify for higher rebates than HEVs.

"Some municipalities and employers also promote these vehicles by offering premier parking spots and free charging stations," said Frost & Sullivan Energy and Environment Research Analyst Wesley Dean. "All these initiatives are increasing the sales of HEVs and EVs and thereby, Li-ion batteries."

While rebates and other promotional schemes do persuade consumers to invest in EVs, the biggest purchase factor is the initial investment cost for the vehicle. The high costs of the battery makes EVs less price competitive than the more traditional internal combustion engine (ICE) vehicles.

Manufacturers are attempting to tackle this cost challenge by increasing production volumes, improving efficiencies in production processes, and finding other suitable applications for these batteries to improve economies of scale.

Manufacturers are striving to establish standards as each battery company is hoping to identify the ideal battery chemistry and configuration. The lack of standards complicates the logistics and practicality of both battery swapping and second-life applications. Consumers also expect Li-ion batteries to provide superior vehicle performance, reliability, durability and range. "

EV and EV battery manufacturers will do well to educate their target audience about the total cost of ownership, performance and reliability advantages of EVs over their ICE-driven counter parts," noted Dean. "Meanwhile, they will continue to sign partnerships and joint ventures to facilitate sharing of resources, cost and risk mitigation, and the fostering of a cohesive technological environment guided by a single vision."

If you are interested in more information on Frost & Sullivan study Global Hybrid Electric and Electric Vehicle Lithium-ion Battery Market (N9E7), please send an email to Katja Feick, Corporate Communications, at katja.feick@frost.com, with your full contact details. Connect with Frost & Sullivan on social media, including Twitter, Facebook, SlideShare, and LinkedIn, for the latest news and updates. Global Hybrid Electric and Electric Vehicle Lithium-ion Battery Market is part of the Energy and Environment Growth Partnership Service program. Frost & Sullivan's related research services include: Global Inverter Market for Renewable Energy Systems, Global Nickel Battery Market, Analysis of the Global Thin-film Battery Market, and Annual Global Power & Energy Outlook 2012. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Join us at our upcoming event Urban Mobility 3.0 Frost & Sullivan will be hosting its two day event on 19-20 June 2013 for the 4th time this year, taking place in London at the House of Lords and the Siemens Crystal Building. Day 2 will consist of 5 different panels, focussing on megatrends and their impact on mobility, new business models, such as mobility integration, car sharing, and new fleet/leasing models, urban logistics an online retailing, the future of public transport, including HSR, BRT buses, PRT and hybrid/electric buses, as well as autonomous driving and infrastructure trends. For more information, visit: www.gilcommunity.com/urbanmobility