According to a report released by the international market research institute Technavio, the global 21,700 lithium-ion battery market will grow by 2.63 billion US dollars in 2019-2023.
As the automotive industry increasingly adopts battery technology and suppliers develop cost-effective production methods, the cost of lithium-ion batteries has decreased significantly over the past decade, reducing the total cost of ownership of electric vehicles. Compared to alternative technologies such as lead-acid batteries and nickel-metal hydride batteries, lithium-ion battery manufacturers are offering products that are becoming more competitive.
Increasing global demand for electric vehicles is expected to further reduce the price of lithium-ion batteries in the coming years. The cost of 21700 lithium-ion batteries is usually lower than other lithium-ion batteries used in electric vehicles. Lower costs, favorable policies and increasing demand for lithium-ion batteries are expected to boost the market's growth over the forecast period.
Increasing investment in electric vehicle charging infrastructure is a major driver of 21700 lithium-ion growth worldwide. At present, the biggest constraint on the popularity of electric vehicles is the lack of public charging facilities. However, both the public and private sectors are investing heavily to increase the number of electric vehicle charging stations to support the penetration of electric vehicles. For example, in 2018, ChargePoint, a leading global electric vehicle charging network, announced plans to install 2.5 million electric vehicle charging points in North America, Europe, New Zealand and Australia by 2025. These projects will have a positive impact on lithium-ion battery demand.
Based on these factors, Technavio believes that the global 21700 lithium-ion battery market will achieve a compound annual growth rate of more than 19% during the forecast period.
From the perspective of suppliers, LG Chem, Panasonic, Samsung SDI, Shenzhen BAK Power Battery, Far East Battery, Tianjin Lishen Battery, etc. will become the main 21700 lithium-ion battery suppliers. In 2018, Far East Battery, a subsidiary of Far East Smart Energy (stock code: 600869), officially launched the 3GWh high-nickel 21700 power lithium battery project, becoming one of the few companies in the market that can mass-produce this type of battery. The company introduced two intelligent and green production lines with a daily output of 403GWh 21700 power batteries, mainly from Japan and South Korea. The mass production of 21700 batteries has a capacity of 5.0Ah, which is 45% larger than 18650. The energy density of battery cells is greater than 260Wh. / Kg, which is nearly 20% higher than 18650; the system energy density can reach 180Wh / Kg, and the weight of the battery system is reduced by more than 10%.
From the application market point of view, 21700 lithium-ion batteries are mainly used in the automotive market. This trend is expected to continue during the forecast period. Factors such as technological advances and falling lithium-ion battery prices have increased the use of 21,700 lithium-ion batteries in electric bikes.
From a regional market perspective, the Asia-Pacific region will account for the highest share of the 21700 lithium-ion battery market throughout the forecast period. Governments such as China, Japan, India and South Korea are working to shift from fossil fuel vehicles to electric vehicles to reduce emissions and achieve the goals of the Paris Agreement. These factors will contribute to the growth of the 21,700 lithium-ion battery market in the Asia-Pacific region.
Through a comprehensive study of the company's growth opportunities, it has been determined that the Asia-Pacific region will account for the highest share of the 21700 lithium-ion battery market throughout the forecast period. The governments of China, Japan, India and South Korea are working to shift the focus from fossil fuel vehicles to electric vehicles. These countries have also set goals and adopted several reforms to encourage the adoption of electric vehicles. These factors will contribute to the growth of the 21,700 lithium-ion battery market in the Asia-Pacific region.