Driven by demand for electric vehicles and smartphones, the market for lithium ion batteries is set to explode according to a new market research report..Fuelled by growing demand in North America and the EU, the global market for the ubiquitous power cells is expected to top US$187 billion — roughly the size of the entire Canadian oil and gas industry — from $50.65 billion in 2022, as per US-based Verified Market Research firm..In addition to EVs, demand will be fuelled by the emerging marine, aerospace, defence and power sectors, in addition to continuing proliferation of personal electronics and even power tools..“The lithium-ion battery market is expanding rapidly as technology advances, resulting in increased manufacturing of electric plug-in automobiles,” it said. .“Elon Musk’s automobile company, as well as GM and other automakers, are focusing on developing significantly longer-lasting and more durable battery cells.” .The new technology will allow cars to go 400 miles or more between charges and have a range of up to one million miles as battery manufacturers concentrate efforts on removing costly — and contentious — cobalt from batteries..”Supportive” government regulations, along with subsidies to purchase EVs, have driven their sales across developing countries. .The report notes lithium-ion batteries have several advantages over comparable batteries; they’re capable of having a very high voltage and charge storage per unit mass and unit volume compared to other power cells. .Lithium-ion batteries have higher energy densities compared to lead-acid batteries or nickel-metal hydride batteries, so it is possible to make the battery size smaller while retaining the same storage capacity. Nissan’s Lithium-ion battery technology uses materials that allow a higher density of lithium ions to be stored hence, increasing travel distance and making it attractive for EVs..“As the market evolves, key players are adopting strategic development approaches to secure a competitive edge and solidify their market presence,” it says..But despite their technological promise, they still have some significant shortcomings, particularly with regard to safety. .They contain flammable electrolytes and concerns regarding the transportation and storage of spent batteries. The report says these are some of the major factors that are expected to hinder the growth of the market in the short term..Looking ahead, the lithium-Ion market is projected to continue its growth trajectory, particularly in the Asia Pacific region, where it holds the largest market share. But also in North America and Europe where compounded annual growth rates will be higher..While there are a large number of battery cell and electric vehicle manufacturing facilities under construction in Canada and the US, there is a large void in the domestic supply chain resulting in a significant shortage in the amount of domestic and environmentally responsible battery materials required to feed these facilities..In February, Canada adopted a so-called ‘critical minerals strategy’ to develop domestic supply chains for rare Earth minerals which are presently dominated by China. .“Recent geopolitical events, such as Russia’s invasion of Ukraine, highlight the fragility of critical mineral supply and the need for Canada’s partners and allies to diversify their sources,” according to Natural Resources Canada.
