A new report from Pike Research indicates that improvements across the board in the lithium ion battery sector is likely to lead to a $22 billion market by 2020, from 2012’s roughly $1.6 billion.
From the Daily Finance:
“The Li-ion battery looks set to be the chemistry of choice for the on-board energy storage market for the foreseeable future, taking over from nickel-metal hydride, which has been the preferred battery for hybrids to date,” says senior research analyst David Alexander. “Li-ion batteries can supply the much greater capacity needed for battery electric and plug-in hybrid vehicles, and 2012 saw the launch and announcement of new models from many manufacturers, all featuring Li-ion batteries.”
Lithium ion technology developments are crucial to the wider emergence and acceptance of electric vehicles, as the high battery cost continues to be a major deterrent. But the report suggests these costs could come down to around $447 per kilowatt-hour by 2020.
The report offers a breakdown of the current market with projections under multiple scenarios. It includes revenue forecasts categorized by vehicle type, region, and other criteria.