Guidehouse Insights Estimates Global Market for LD BEV Batteries Will Grow to Nearly $325 Billion by 2032

EV battery market is a critical component of the trend toward increased electrification in the global automotive business

BOULDER, Colo., Oct. 12, 2023 /PRNewswire/ — A new report from Guidehouse Insights analyzes the drivers and barriers for the EV battery market, examines the current state of the industry, trends in manufacturing, and outlook for future prices.

Rising sales of plug-in EVs (PEVs), growing regulatory pressure on vehicle emissions and internal combustion engine vehicle sales, and OEM commitments to electrification have increased the demand for advanced batteries and the associated minerals. According to a new report from Guidehouse Insights, global manufacturing volume for light duty (LD) battery EV (BEV) batteries is expected to rise from more than 533 GWh in 2023 to over 4.5 TWh in 2032, at a compound annual growth rate (CAGR) of 26.9%.

Manufacturing growth is expected to outpace the decline in pack prices such that global revenue for LD BEV batteries is expected to increase from more than $71 billion in 2023 to over $324 billion in 2032, at a CAGR of 18.3%.

“Battery cell technology continues to improve and has led to a diverse landscape in terms of chemistries, physical formats, and suppliers. Nickel-rich and lithium iron phosphate (LFP) batteries constitute the majority of the market today, and this is expected to continue, with LFP gaining in adoption over the coming years,” says Michael Austin, senior research analyst with Guidehouse Insights. “Next-generation technologies in development, such as silicon anodes and solid-state, lithium sulfur, and sodium ion batteries, continue to mature and approach mass-market production.”

Meeting the expected global demand for PEVs—which include BEVs as well as plug-in hybrid EVs (PHEVs)—in the next 10 years will require a massive buildup of capacity all along the value chain. This will correspond with a trend toward localizing mineral extraction and refinement and cell production, in some cases incentivized by government regulations and subsidies. In the short term, expanded cell manufacturing capacity may be at risk of outpacing raw material availability, leading to potential supply disruptions, according to the report.

The report, EV Batteries, includes analyses for light duty passenger EV and medium and heavy duty commercial EV battery pack prices, production volumes, and revenues. Expected figures include regional segmentation of the world market. The topics examined include market trends, drivers, and barriers of the EV battery market, and market analyses, which extend through 2032. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, EV Batteries, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

Contact:

Cecile Fradkin for Guidehouse Insights

+1.646.941.9139

[email protected]

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