The market boost has come about following a rise in the number of EVs and HEVs being produced as well as a shift to lithiumn-ion batteries from the previously used nickel-metal hydride technology.

As a result, Frost & Sullivan’s Global Hybrid Electric and Electric Vehicle Lithium-ion Battery Market research finds the market earned revenues of $2.1bn in 2012 and estimates this to reach $12.8bn in 2019.

Various national government rebates for economical alternatives such as EVs has also boosted the market.

‘Some municipalities and employers also promote these vehicles by offering premier parking spots and free charging stations,’ said Frost & Sullivan Energy and Environment Research Analyst Wesley Dean. ‘All these initiatives are increasing the sales of HEVs and EVs and thereby, Li-ion batteries.’

However, the company adds that while rebates and other promotional schemes do persuade consumers to invest in EVs, the biggest purchase factor is the initial investment cost for the vehicle. Manufacturers are attempting to tackle this cost challenge by increasing production volumes, improving efficiencies in production processes, and finding other suitable applications for these batteries to improve economies of scale.

It also noted that manufacturers are striving to establish standards as each battery company is hoping to identify the ideal battery chemistry and configuration. The lack of standards complicates the logistics and practicality of both battery swapping and second-life applications. Consumers also expect lithium-ion batteries to provide superior vehicle performance, reliability, durability and range.

‘EV and EV battery manufacturers will do well to educate their target audience about the total cost of ownership, performance and reliability advantages of EVs over their ICE-driven counter parts,’ noted Mr Dean. ‘Meanwhile, they will continue to sign partnerships and joint ventures to facilitate sharing of resources, cost and risk mitigation, and the fostering of a cohesive technological environment guided by a single vision.’