Written by BIS Research Analysts Ajeya Saxena

In spite of rapidly increasing adoption of electric vehicles (EVs), their competitiveness in terms of performance and pricing with internal combustion (IC) engine vehicles still seems a farfetched objective. Sluggish developments in the battery chemistry combined with the scarce supply of raw materials have been major roadblocks in the EV market establishment. Stakeholders in the EV market have already invested more than $150 billion between 2014 and 2018 to overcome the challenges faced by EVs. While automotive OEMs have been key contributors in terms of investment, government support in form of subsidies and tax incentives has played a pivotal role in ensuring EV adoption.

The automotive industry is undergoing a transformative shift toward the adoption of electric vehicles (EV) and is investing significantly in the research and development (R&D) of its battery technology and components. The energy density and weight of the battery are the major factors that determine the designing and manufacturing cost of an electric vehicle. The conventional lithium-ion (Li-ion) battery technology has been in existence since 2000s and has found its applications in various sectors, namely electronics & automotive industry, and energy storage systems. However, key limitations of the li-ion batteries such as high flammability, risk of leakage, high cost, and ageing have propelled the researches to develop better battery chemistries such as solid-state batteries (SSB).

Global warming and rapidly increasing pollution level are some of the alarming environment concerns that have led the manufacturers in the automotive industry to opt for the alternative sources of energy. Batteries have been used as a secondary source of energy ever since the introduction of the first automobile.  According to the market intelligence report by BIS Research titled, ‘Global Electric Vehicles Battery Market- Analysis and Forecast (2017-2026), the market is expected to register a CAGR of approximately 20% during the forecast period. This tremendous market growth is attributed to the increasing demand for electric vehicles, stringent governmental regulations, and high energy density of batteries. Further, the electric vehicle market is driven by the changing paradigms in governmental regulations and increasing environmental awareness among the consumers.