From Battery Cell to Battery Pack Components, Companies are Seeking Better Margins
July 5, 2016 | Yole DéveloppementEstimated reading time: 2 minutes
Battery pack components are gaining importance in the fast-growing battery pack market, reaching US$65.7 billion by 2021. Cost decrease and performance improvements will directly impact the market and contribute to a larger adoption in many applications. Many companies have identified this potential and focused their R&D efforts on the development of disruptive technologies for Li-ion battery packs. Whereas battery cells become a sort of “standard” products, companies are developing new solutions for battery pack components in order to ensure the increase of their margins: the added-value in batteries spreads from battery cells to battery pack components.
Yole Développement (Yole) pursues its exploration of the battery world and releases this year a new report dedicated to the stationary batteries and plug-in HEV & BEV solutions. “Stationary storage & Automotive Li-ion battery packs” report demonstrates the strong consistently-growing potential for power electronics players in the energy storage business based on Li-ion battery technologies. Yole’s team analyzes market opportunities, supply chain technologies’ evolution and latest innovations for battery pack elements. This technology & market analysis is covering a large variety of different products and technology solutions used in battery packs elements.
The battery pack is the key element of battery storage systems. Such systems are used for clean mobility in hybrid electric vehicles and battery electric vehicles, and are crucial for the further deployment of intermittent renewable energy sources like wind and photovoltaics. Also, battery storage solutions are increasingly used in buildings and for electrical grid stabilization. Demand for battery packs in these applications is growing rapidly and 2015 - 2021 CAGR for pack components will reach 47.4%, according to Yole’s stationary storage & automotive Li-ion battery pack report.
A main part of the battery pack demand will come from the automotive industry. In 2015 the demand in MWh for plug-in hybrid electric and battery electric vehicles was about 18x higher than for stationary applications. This ratio will remain almost unchanged by 2021 because both the automotive and stationary markets will feature strong growth. Stationary applications also present opportunities for companies with relatively small production capacities that are not compatible with automotive industry volumes but offer a higher differentiation/added value.
Today, the development of innovative battery technologies is focused mainly on battery cells as a key component of the battery pack. In fact, cells represent more than 50% of the battery pack cost. “Strongly decreasing cell costs will shift R&D efforts to other battery cost elements like BMS , thermal management and protection solutions,” comment Dr Milan Rosina, Senior Analyst Energy Conversion & Emerging Materials at Yole.
Many players with the know-how and/or manufacturing capacities for such technology solutions have already identified these business opportunities and are diversifying their activities into the battery pack business.
Suggested Items
SCHMID Group Closes Business Combination, Begins Trading on NASDAQ
05/02/2024 | SCHMID GroupGebr. SCHMID GmbH, a global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries, and Pegasus Digital Mobility Acquisition Corp. announced the completion of their business combination.
Real Time with… IPC APEX EXPO 2024: Sigma Engineering's Recycling and Regeneration Systems for PCB Etching
05/02/2024 | Real Time with...IPC APEX EXPOEvan Howard of Schmoll America interviews Kristoffer Bjorklund, Sigma Engineering's supply chain manager. We learn about Sigma's recycling and regeneration systems for PCB industry etching and the benefits and challenges of implementing these systems in existing factories.
Real Time with… IPC APEX EXPO 2024: Outlining Rehm's Innovations and Global Presence
05/01/2024 | Real Time with...IPC APEX EXPOMichael Hanke, the chief sales officer for Rehm Thermal Systems, shares insights on the North American market, new machinery, and software development. He also discusses Rehm's turnkey solutions, process flexibility, global presence, and the dedicated team of 700 employees working on global solutions.
Real Time with… IPC APEX EXPO 2024: The Latest Advancements in Dry Storage
04/30/2024 | Real Time with...IPC APEX EXPOEditor Marcy LaRont and Super Dry Totech's Jordan Mandel discuss the latest developments in dry storage solutions, the J standard, and the ongoing challenge of moisture management while highlighting the industry's shift toward smart solutions and the importance of seeking expert help for moisture mitigation.
Keysight Secures New Test Case Validations for Narrowband Non-Terrestrial Networks Standard
04/30/2024 | Keysight TechnologiesKeysight Technologies, Inc. has validated new conformance test cases for 3rd Generation Partnership Project (3GPP) Release 17 (Rel-17) standards for non-terrestrial networks (NTN) using narrowband internet of things (NB-IoT) technology.