Comparing the market size for consumer electronic and electric bus batteries, electric bus batteries are expected to take over around 2019-2020.
According to research firm IDTechEx, electric bus sales will be a ‘game changer’ for the global battery market, given that worldwide sales of these buses are growing at a rate of 20% a year.
The increasing demand from the consumer electronics sector by 2019 will make it the largest single segment of the global battery market. This sector of global battery market could alter the entire value chain for battery production from material suppliers, battery manufacturers and original equipment manufacturers.
The batteries required by electric buses range widely – 4kWh for fast-charging buses to 300kWh for slow-charging models. With rapid growth, the e-bus battery market could reach $30 billion by 2026.
Majority of the world’s electric buses as well as three-quarters of batteries – Lithium iron phosphate (LFP) being the most common, are produced in China. Nickel manganese cobalt (NMC) batteries are largely produced outside China.
According to the report, the country is attempting to stay on top of the battery market by keeping the whole supply chain of electric vehicles and batteries within its borders.
The report also states that if recent Chinese government policy intervention in favor of LFPs is rigorously applied, market dynamics will largely lean towards the technology.
The electric car market uses a mix of different battery chemistries; although in contrast, 80% of the battery market is comprises of LFP.
Buses need larger batteries, meaning that LFPs are safer than NMC lithium-ion technologies. IDTechEx guesses that by 2025, safety will improve and non-LFP battery technology could account for almost half the market.
Source and image credits: Business Green