A new study from Frost & Sullivan finds that the lithium-ion battery market is rapidly evolving and is slowly becoming the technology of choice for next generation Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs). Lithium-ion batteries are a crucial part of EVs since the performance of the vehicle in terms of acceleration, cost, distance covered and life span since depends up on the battery pack.
A lithium-ion battery is lightweight, more efficient, has a longer life span, is cost-effective, and is safer when compared to a lead battery. Currently, lithium-ion batteries are used in most electronic equipment like laptops, smart phones, tablets, and cameras. Demand from the electronics industry is steadily rising as lithium-ion batteries have longer life and recharging capacities that are compatible with laptops, cameras and smart phones.
According the Frost & Sullivan forecast the demand for lithium cells is expected to grow significantly during 2014 -25 period. Batteries for grid, EVs and HEVs is expected to grow at 21.30 percent CAGR during the period followed by portable device at 9.7 percent and other gadgets by 4.7 percent.
Lithium consumption in batteries by 2025
| Utilities | Consumption by 2025 | 2014-25 CAGR (%) |
| Portable device | 1,11,176 tonne | 9.70 |
| Grid | 7,500 tonne | 21.30 |
| EVs and HEVs | 2,04,901 tonne | 21.30 |
| Others | 1,74,994 tonne | 4.70 |
| Total | 4,98,571 tonne | 10.10 |
