OUTLOOK COMMENT ON EMAIL PORTABLE

The recovery depends on government assistance, as well as the level of corporate debt and how the companies and markets cope with the trimmed demand.вЂќДЄnd what about the environmental impact of this anticipated surge in battery demand? After all, the heavy power consumption that is expected, along with the growth of the global battery market, has enormous implications for clean-energy usage and sustainable development as a whole. вЂњIt has also resulted in limited production leading to a serious decline in business inputs. Battery manufacturers in the US, Germany, and Australia are highly impacted by the shutdown of operations in China and other Asia Pacific countries,вЂќ according to Research and Markets. вЂњThe COVID-19 situation has exposed the overdependency on the region for key raw materials, especially China. Indeed, as is the case for many industries at present, supply-chain disruptions are greatly affecting output levels-in this case, it is mainly due to key components for batteries being manufactured in the Asia-Pacific region. The prevailing COVID-19 situation, however, means that the expected growth of the Li-ion battery market is likely to be curbed by the pandemic restricting the supply of batteries and other components due to severe disruptions in businesses and the global economy, the report acknowledged. вЂњLithium-ion battery energy storage systems enable grid operators to save electricity when there is a surplus of renewable energy.вЂќ вЂњThe flexibility offered by these batteries to the grid in terms of energy storage helps to deal with fluctuations associated with renewable energy sources, such as solar and wind energy, is catalysing the adoption of lithium-ion battery energy storage systems,вЂќ the report noted. This has increased the demand for Li-ion batteries.вЂќДЄ July 2021 report from Research and Markets, moreover, saw the global Li-ion battery market growing from $41.1 billion in 2021 to $116.6 billion by 2030 at a CAGR of 12.3 percent, with the need to fulfil peak electricity-demand requirements being the major contributory factor. вЂњThe market for these vehicles is expected to grow in the near future, partly driven by the adoption of various environmental norms and emission regulations. вЂњIncreasing adoption and awareness of EVs, government initiatives, and regulations supporting the adoption of EVs around the world are the factors that are driving the growth of the lithium-ion battery market,вЂќ according to MarketsandMarkets. The Li-ion-battery market for the automotive industry, meanwhile, is widely expected to represent the biggest market share during the forecast period. WhatвЂ™s more, an increase in demand for plug-in vehicles a growing need for automation and battery-operated material-handling equipment in industries propelling the demand for smart devices and an expanding need for Li-ion batteries across a broad range of industrial applications are key factors that will drive Li-ion-battery-consumption growth over the next few years. Growth is likely to be driven by the preferable, often unique qualities possessed by such batteries, which will boost adoption of consumer electronics as well as expand the number of research and development initiatives by different organizations and battery manufacturers, the report noted.

OUTLOOK COMMENT ON EMAIL PORTABLE

Thanks to the specific qualities of lithium that make charging and discharging much safer than other materials, Li-ion batteries are already used across a broad spectrum of applications, including portable devices such as mobile phones, laptops and tablets, as well as efficiently supplying energy for electric vehicles (EV), medical equipment and power tools.ДЄ March 2021 report from the MarketsandMarkets research company forecasted that the global Li-ion battery market will grow at a CAGR of 16.4 percent between 20, from $44.2 billion to $94.4 billion. Of the three, lithium-ion (Li-ion) batteries will likely generate the bulk of the growth over the next few years.

Lead-acid, lithium-ion and nickel-based batteries are currently the battery types most commonly used worldwide, with some estimates calculating their total share of the global battery market at around 95 percent.

Indeed, the global battery market size is expected to reach $310.8 billion by 2027, expanding at a CAGR (compound annual growth rate) of 14.1 percent from 2020 to 2027, according to a July 2020 report by Grand View Research. And with electric vehicles (EVs), electricity storage and renewable power all set to play increasingly significant roles across the world over the next decade, our global dependence on batteries will continue climbing expeditiously.

Whether powering our laptops, phones and cars or being used extensively across power-storage solutions, it is clear that batteries are essential to our everyday lives.

By Cary Springfield, International Banker

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