Rise of EVs Brings Windfalls to Global Battery Industry

With governments around the world scheduling to replace petroleum vehicles with electric vehicles (EV), global sales of EVs are estimated to post an annual compound growth of 35.8 percent in the coming years, to trigger considerable demands for lithium batteries and related materials, reported Frost & Sullivan, an international well-known consulting firm.

The firm said that prices of lithium batteries will rise year by year, and increase to double that as seen in 2017 by 2020.

Fubon Financial Holding Co., Ltd., a Taiwan-based firm providing asset management services, added that apart from the demands from the EV industry, the rise of 3C products will boost needs for lithium batteries and related materials.

The four main materials of a lithium battery are cathode materials, anode materials, electrolytes and bettery diaphragms. Among the said materials, the production of cathode material calls for lithium and cobalt, both of which are natural resources that can not be made artificially. Thus, it is estimated that the market for cobalt, due to limited sources, will suffer from supply shortages.

On another front, supply of artificial graphite, the main material for anode products, remains stable in the market for the moment; meanwhile, China is the world's biggest producer of lithium, the main element for electrolyte.