The market for batteries to be used in electric vehicles is rising faster than expected and this brings tremendous business opportunities today and in the future for businesses looking for long term revenues. The EV battery market will be worth more than USD240 billion in 20 years time and this is just an estimate.
That assumption is based on the electrification of 40% of vehicles over the next two decades, which would be at least 40 million units annually, out of about 100 million currently produced yearly.
In the future to hit these numbers, the pricing of electrification and batteries is said to achieve parity with the internal combustion engine systems, at about USD6,000 per vehicle on average.
At this point, are are not sure whether 40% is not too conservative, but whatever it will ultimately be, there is need to build dozens of new battery giga-factories around the world.
40 million cars with average 60 kWh battery requires 2,400 GWh of battery capacity (more than 20x completed Tesla Gigafactory at 105 GWh cell production).
It must be noted that the Chinese government is also working hard to enable Chinese manufacturers to acquire the biggest share of this accelerating business as China is slowly moving to have much more Electric Vehicles on their roads and slowly phasing out combustion engines to reduce air pollution.
China at the moment has more than 140 EV battery manufacturers with more than 125 GWh capacity today (to be 250 GWh by 2020).
