Europe Lithium-Ion (Li-Ion) Battery market was valued at US$5.487billion in 2019. High concerns about environmental sustainability is pushing the adoption of sustainable sources of energy. 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. To achieve this, the country has set the preliminary target of cutting emission 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 aims to cut its greenhouse gas emissions to at least 90 per cent by 2025 relative to 1990 levels.
In order to reach these targets, governments as well as car manufacturers are investing heavily in the electric vehicle sector since the transport industry causes the most GHG emissions. Thus, the major factor that is 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.
The presence of global automotive manufacturers, with high investments in electric vehicle sector, further strengthens the demand for Li-Ion batteries in the region. Moreover, global automakers are further expanding their production facilities in this region. Europe attracted €60 billion of total investments for electric vehicles in 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 to invest $788 million in the construction of a production line at its historic plant of Mirafiori (Turin) for the new electric version of the 500 model (BEV).
Increasing investments in EV charging infrastructure makes the European market more lucrative for 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 so, the demand for lithium-ion batteries. The German government aims to build upto 10 million electric vehicles along with 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 to 13 motorway locations in Belgium, allowing it to expand its fast charger network. Meanwhile, the European Investment Bank (EIB) announced to support Be Charge’s expansion of charging infrastructure for electric vehicles throughout Italy. EIB signed a €25 million loan facility for a period of 10 years in Rome. Recently 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 is also pushing up the investments in energy storage systems which will continue to pave the way for the growth of 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 is providing 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 in return 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 on the basis of type, chemistry, industry, and country. On the basis of type, the market has been segmented into rechargeable and non-rechargeable. By chemistry, Europe Lithium-Ion (Li-Ion) battery market has been classified as Lithium-cobalt Oxide (LCO), Lithium-iron Phosphate (LFP), 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.
Competitive Insights
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 noteworthy share in the market on account of their good brand image and product offerings. Major players in the Europe Lithium Ion (Li-Ion) Battery market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.
Segmentation
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