Over $7,000.0 Million Revenue Explosion Expected in Global Second-Life Automotive Lithium-Ion Battery Market Between 2020 and 2030
The global second-life automotive lithium-ion battery market attained a valuation of $430.0 million in 2019 and is predicted to exhibit a CAGR of 23.1% between 2020 and 2030. As per the forecast of P&S Intelligence, a market research company based in India, the market would generate a revenue of $7,392.0 million by 2030. The rising usage of electric vehicles (EVs) around the world and the highly costly battery recycling process are the main factors driving the advancement of the market.
Lithium-ion batteries consist of only 2–7% of lithium and obtaining the material via recycling is five times costlier than obtaining it directly from various natural sources. The only substance worth recycling in these batteries is cobalt. However, the companies manufacturing these batteries are increasingly focusing on eliminating the composition of this material and replacing it with a cheaper and more stable material. This is massively reducing the requirement for battery recycling across the world.
Apart from the aforementioned factor, the rising deployment of EVs is also fueling the demand for electric vehicle batteries. This is, in turn, causing the expansion of the second-life automotive lithium-ion battery market. The soaring concerns being raised in several countries over environmental degradation, on account of the rapid depletion of the ozone layer, are propelling the demand for electric vehicles. According to many reports, the automotive sector emits nearly 43% of the total greenhouse gases across the world.
Furthermore, the governments of several countries are increasingly enacting various initiatives and regulations for promoting the usage of electric vehicles. This is also boosting the sales of the second-life automotive lithium-ion batteries around the world. Based on type, the second-life automotive lithium-ion battery market is classified into lithium ferro phosphate (LFP), lithium-ion manganese oxide (LMO), lithium–titanate oxide (LTO), lithium–nickel–manganese–cobalt oxide (NMC), and lithium–nickel–cobalt–aluminum oxide (NCA) categories.
Out of these, the NCA category is predicted to demonstrate the highest growth rate in the market in the future years. This would be a result of the fact that the NCA batteries have higher energy densities and greater fast charging capabilities than the others. Globally, the second-life automotive lithium-ion battery market is predicted to exhibit the fastest growth in Europe in the forthcoming years, mainly because of the ballooning sales of electric vehicles in the region.
The enactment of the strategic action plan for batteries in Europe in May 2018 is another major factor driving the progress of the market in this region. Under this action plan, the enhancements in developing a battery value chain, including the adoption of raw material extraction, the processing and sourcing of battery materials, the manufacturing of battery systems and cells, and recycling and reusing, are proposed to be done in the coming years.