Increased Partnerships And Investments In R&D To Open New Opportunities For Lithium-Ion Battery

The fast-paced world is driven by smart electronic gadgets and lithium-ion (Li-ion) batteries play a major role in operating the gadgets. Li-ion batteries are rechargeable batteries used in laptops, smartphones, and iPods. With the increase in the use of electronics in day-to-day lives, implementation of stringent rules and regulations to control pollution levels, and higher energy efficiency requirement of technologically updated gadgets, the global Li-ion battery market has witnessed a speedy growth over the years and the market opened new opportunities to key players. According to Allied Market Research, the global Li-ion market is projected to grow at a CAGR of 18.0% from 2020 to 2027 and is likely to hit $129.3 billion by 2027. However, high prices of Li-ion batteries create a challenge for market growth. Thus, several start-ups and major corporations are investing big bucks to find an affordable way to manufacture these batteries. It is observed that the growth of the market is backed by rapid partnerships that opened new opportunities for market players.

Partnerships in Li-ion battery market

Over the last few years, several companies have partnered together to increase their businesses, provide better products and services, and sustain their market position.

For instance, Mahindra & Mahindra, an Indian car manufacturing company, partnered with LG Chem, the largest Korean chemical company, for collaboration in the sector of Li-ion battery technology. Mahindra & Mahindra aims to transform itself to become a sole solution provider of Li-ion batteries. LG Chem designed Li-ion battery modules particularly for Mahindra Electric, which would create battery packs for the Mahindra group and other customers. The partnership offered Mahindra & Mahindra access to advanced battery technology and enabled it to deliver competitive products globally.

On the other hand, Pinnacle Industries, a vehicle components maker, completed the set-up of the Li-ion battery assembly plant in India and partnered with China’s Phylion Battery company. The company aims to generate battery packs with Phylion and semi knocked-down (SKD) kits for light electric vehicles, passenger cars, and light commercial vehicles.

According to Mr. Sudhir Mehta, Chairman and Managing Director of Pinnacle industries, the Indian Li-ion battery market has high potential to grow. Setting up an assembly plant would help the company to reduce vehicle costs, make electric vehicles more viable, and provide better after-sales services. However, the recent pandemic has greatly affected the industry,

Impact on Covid-19 on Li-ion market

China has invested heavily in mining rare earth materials and is the largest manufacturer of Li-ion batteries, which makes it the largest supplier of the batteries globally. The pandemic has brought into focus the over-dependence of countries across the world on China for Li-ion batteries. Nations have now become desperate to find alternatives to Li-ion batteries to reduce the dependence on China. Keeping this in mind, start-ups have been experimenting with composite materials using derivatives of abundantly available carbon.

Faradion, a UK start-up has been developing a sodium-ion battery technology that can use salt. Moreover, an Indian start-up, backed by Mumbai Angels, a venture investing platform, has been experimenting with carbon. According to a published article, India will soon be able to manufacture Li-ion batteries that will reduce the dependence on China.

Apart from this, several countries have set up plants to manufacture the batteries in their respective nations. Moreover, countries such as the UK and India have been working on searching alternatives to Li-ion batteries to reduce the cost of electronic products. Despite increased R&D to find alternatives to Li-ion batteries, every research is far away from its completion. The pandemic is likely to affect the Li-ion battery market but with no alternatives available and the dependence of electronics on Li-ion batteries, the market is bound to grow in the near future.

Related Post