The European Lithium-Ion (Li-Ion) battery market was valued at US$5.195 billion in 2020. The market is projected to grow at CAGR of 25.37% to attain size worth US$25.929 billion by 2027.
Deep concerns about environmental sustainability are pushing for the adoption of sustainable energy sources. Furthermore, European countries have strict regulations regarding environmental sustainability. The European Union (EU) has some of the world’s highest environmental standards, developed over decades. The EU has a range of measures to improve the quality of the environment for its citizens while safeguarding their quality of life. Each European Country has set targets to reduce the overall greenhouse gas (GHG) emissions. For instance, Germany aims to become greenhouse gas neutral by 2050. The Country has set an initial goal of reducing emissions by at least 55% by 2030 compared to 1990 levels. The Country has set the primary target of cutting emissions by at least 55 percent by 2030, compared to 1990 levels. The UK’s parliament passed the legislation in June 2019, requiring the government to reduce the Country’s net greenhouse gas emissions by 100 percent by 2050 compared to 1990 levels. Spain also intends to reduce greenhouse gas emissions by at least 90% by 2025 compared to 1990. Spain also aims to cut its greenhouse gas emissions to at least 90 percent by 2025 relative to 1990 levels.
To reach these targets, governments and car manufacturers are investing heavily in the electric vehicle sector since the transport industry causes the most GHG emissions. Thus, the major factor driving the demand for lithium-ion (Li-Ion) batteries in Europe is the booming production of electric vehicles in the region. According to the IEA (International Energy Agency) data, the European BEV (battery electric vehicle) stock has surged from 0.01 million units in 2010 to 0.97 million units in 2019. Also, the region’s PHEV (plug-in hybrid electric vehicle) car stock increased from 0.01 million units in 2012 to 0.78 million units in 2019. Moreover, on the demand side, governments are taking several initiatives and implementing favourable policies to boost the adoption of electric vehicles among people.
With high investments in the electric vehicle sector, the presence of global automotive manufacturers further strengthens the demand for Li-Ion batteries in the region. Moreover, global automakers are further expanding their production facilities in this region. In 2019, Europe attracted €60 billion of total investments in electric vehicles 2019. Also, the Czech Republic received €6.6 billion from Volkswagen. The global automaker has plans to manufacture 75 all-electric models globally by 2029, along with plans to set up a manufacturing plant in Germany. In 2019, Fiat Chrysler Automobiles (FCA) announced it would invest $788 million in the construction of a production line at its historical plant of Mirafiori (Turin) for the new electric version of the 500 models (BEV).
Increasing investments in EV charging infrastructure will make the European market more lucrative in the coming future for lithium-ion battery manufacturers. The presence of a vast network of EV charging infrastructure will attract consumers to buy EVs, which will drive up their production and, thus, the demand for lithium-ion batteries. The German government aims to build up to 10 million electric vehicles and 1 million charging stations on the Country’s roads by 2030. In late 2019, electric vehicle charging supplier Fastned announced the new financing and location plans. The company got secured permits for 13 motorway locations in Belgium, allowing it to expand its fast charger network.
Meanwhile, the European Investment Bank (EIB) announced it would support Be Charge’s expansion of charging infrastructure for electric vehicles throughout Italy. EIB signed a €25 million loan facility for ten years in Rome. In February 2020, Enel X, an advanced energy services business unit of Enel SpA, has reached the full financing close for its project- AMBRA-Electrify Europe (AMBRA-E)- to install more than 3,000 charging stations for electric vehicles across Romania, Spain, and Italy. To support this project, the European Commission’s Innovation and Networks Executive Agency (INEA) has provided a grant of €14.15 million through its Connecting Europe Facility (CEF) programme.
High investments in renewable energy sources are also pushing up the investments in energy storage systems, which will continue to pave the way for the growth of the li-ion battery market in this region. Policy support for battery energy storage is gaining momentum across this region as national governments are removing barriers while the EU provides financial support for this emerging technology. The UK, Italy, Ireland, and Portugal have designed capacity markets, which allow storage operators to bid for contracts in auctions. This would allow them to generate a fixed and predictable revenue stream for committing capacity. The region is investing billions of dollars into R&D in an attempt to surpass Asia’s dominance in the battery market. For example, the EU has put $550 million into battery projects within its Horizon 2020 global competitiveness program. In December 2019, the EC approved €3.2 billion of state funding to support battery research and innovation across France, Finland, Belgium, Poland, Italy, and Sweden.
The European Lithium-Ion (Li-Ion) battery market has been segmented based on type, chemistry, Industry, and Country. Based on type, the market has been segmented into rechargeable and non-rechargeable. By chemistry, the European Lithium-Ion (Li-Ion) battery market has been classified as Lithium-cobalt Oxide (LCO), Lithium-iron Phosphate (LFP), and Nickel Manganese Cobalt Oxide (NMC), and others. By Industry, the market segmentation has been done as automotive, consumer electronics, communication and technology, and energy and power.
COVID-19 IMPACT
The rising demand for continuous power from crucial infrastructure systems in the immediate wake of COVID-19, growing preference for plug-in vehicles, rising demand for battery-operated resource devices in industry segments due to the continued development of smart devices, automation, and high popularity of lithium-ion batteries in the renewable energy are driving the growth of the lithium-ion battery market during the Covid-19 disease outbreak.
Competitive Insights
SAMSUNG SDI CO., LTD., LG Chem, Toshiba Infrastructure Systems & Solutions Corporation, Panasonic Industry Europe GmbH, Northvolt AB, Contemporary Amperex Technology Co., Limited, BYD Company Ltd., Exide Technologies, and GS Yuasa Battery Europe Ltd. are among the prominent key market players in the European Lithium-Ion (Li-Ion) Battery market. Prominent key market players in the Europe Lithium-Ion (Li-Ion) Battery market include SAMSUNG SDI CO., LTD., LG Chem, Toshiba Infrastructure Systems & Solutions Corporation, Panasonic Industry Europe GmbH, Northvolt AB, Contemporary Amperex Technology Co., Limited, BYD Company Ltd., Exide Technologies, and GS Yuasa Battery Europe Ltd. These companies hold a significant share of their good brand image and product offerings in the market. Major players in the European Lithium-Ion (Li-Ion) Battery market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments of different market players over the last two years.
Market Strategies And Launch
June 2021 -Launch
The European Commission (EC) and the Batteries European Partnership Association (BEPA) have announced the establishment of a public-private partnership to promote research into smart battery tech for Europe. With over 165 members, BEPA demonstrates that there is a lot of interest and know-how in Europe for developing a competitive battery value chain.
July 2021-Acquisition
Ecobat's position in Europe as the leader in recycling batteries of all chemistries is strengthened by the acquisition. Ecobat's combined capabilities allow it the only service provider in Europe to provide the full range of lithium-ion recycling purposes. Ecobat, the leading company in recycling and reuse of batteries, confirmed the acquisition of Promesa, a leading EV lithium-ion battery recycling operator based in Hettstedt, Germany.
2021
The Norwegian government had kept the zero-emission car rewards in place for the end of 2021. So after 2021, the rewards are likely to be modified and altered in tandem with market development. The European Free Trade Association Surveillance Authority (EFTASA) has sanctioned a VAT exemption for zero-emission automobiles in Norway till the end of 2022. ?
December 2020
Britishvolt agreed to build the United Kingdom's first electric vehicle battery production plant in Blyth, northeast England, with a total investment of USD 3.4 billion and the creation of 3,000 jobs. The new factory will use green energy, which includes hydropower created in Norway and transferred 447 miles under the North Sea via the interconnector of the North Sea Link project. Furthermore, the factory aimed to produce more than 300,000 lithium-ion batteries per year, reaching the end scheduled for the end of 2023.
Segmentation
SAMSUNG SDI CO.,LTD.
LG Chem
Toshiba Infrastructure Systems & Solutions Corporation
Panasonic Industry Europe GmbH
Northvolt AB
Contemporary Amperex Technology Co., Limited
GS Yuasa Battery Europe Ltd.
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