Battery Contract Manufacturing Market Report Scope & Overview:

The Battery Contract Manufacturing Market size was valued at USD 4.6 billion in 2022 and is expected to grow to USD 14.90 billion by 2030  with an emerging CAGR of 15.8% over the forecast period of 2023-2030.

Battery contract manufacturing has a number of benefits, including reduced prices, quicker production times, and access to specialised knowledge. Companies may concentrate on their core strengths and leave the manufacturing process to the pros by outsourcing the production of batteries. These causes were responsible for the expansion of the battery contract manufacturing market in the United States during the projected period.

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The market is anticipated to increase as a result of growing electric car sales and the sector's expansion in renewable energy. It is anticipated that technological developments to lighten batteries and boost their power output would support industry growth. Additionally, effective distribution channels are probably going to be a key strategy for gaining a competitive edge. With a revenue share of 37.81%, lithium-ion accounted for the bulk of the worldwide battery contract manufacturing market in 2022.

MARKET DYNAMICS

KEY DRIVERS:  

• Growing automotive sector

• Increasing demand for batteries

The market is anticipated to be driven by rising demand for lithium-ion batteries in smartphones due to their longer shelf life and increased efficiency. Additionally, rising consumer interest in electric cars as a result of increased consumer concern about lowering global carbon emissions is anticipated to boost market expansion.

RESTRAIN:

• Decreasing price of custom lithium-ion batteries

• Supply chain risk

OPPORTUNITY: 

• Storage technology advancements

• Supportive government policies to encourage manufacturing investment

CHALLENGES:

• Rising interest in pollution-free HEVs and EVs is anticipated to fuel battery

• Demand for alternative options

Excellent safety and a long product life are features of LFP batteries. As portable and stationary applications need high load currents and durability, rising demand for lithium-ion phosphate batteries is anticipated to support market expansion. Over the course of the projection period, increasing demand for nickel cadmium batteries is anticipated due to their high specific energy, specific power, and extended lifespan. Medical equipment, industrial processes, and electric cars all require nickel cadmium.

IMPACT OF RUSSIA-UKRAINE WAR

Due to its effective energy storage per unit of weight, lithium has practically become unreplaceable in EV batteries.
Lithium consumption is expected to soar by 400% to 4,000% globally over the next few years. Without further investment in mining capacity, costs may grow too high for EV adoption as demand exceeds supply. Soon after the crisis started, Tesla announced a price raise of more than $2,370 for its Model Y vehicle, crushing Elon Musk's aim of cutting prices to draw in new consumers. A successful transition to sustainable energy requires lithium.

KEY MARKET SEGMENTATION

By Product

• Lithium ton

• Lithium-polymer

• Lithium iron phosphate

• Alkaline

• Nickel Metal Hydride

• Nickel Cadmium

By Application

• Electric vehicles

• Consumer Electronics

• Defense / Military

• Telecom Towers

• Energy Storage System

• Mining

• Space

• Marine and sub-marines

• Others

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REGIONAL ANALYSIS

In 2021, the industrial battery market was dominated by Asia-Pacific, and this dominance is anticipated to persist throughout the forecast period. China, India, Japan, and other Asian countries are the key market drivers for industrial batteries in the region South Korea, too.

Due to the growing usage of lithium-ion batteries in energy storage systems, electric cars, and other applications, the Germany market for battery contract manufacturing is anticipated to rise moderately during the course of the forecast period, gadgetry for the home. The development of renewable energies and energy storage technologies are both prominent industries in Germany.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENTS

• Samsung SDI and Stellantis NV declared in October 2021 that they had signed a joint venture (JV) memorandum of understanding (MOU) to create battery cells and modules for North America. The project is scheduled to begin in 2025. The project wants to reach a 23 gigawatt-hour initial annual output capacity having the potential to grow in the future to 40 gigawatt hours.

• In June 2021, the Chhattisgarh State Renewable Energy Development Agency (CREDA) issued a call for proposals to purchase 15,000 on-site, low-maintenance lead-acid batteries for solar power applications of various powers. The contract was valued at around $1.37 million USD.

KEY PLAYERS 

The Major Plauyers are Rose Batteries, Ttek Assemblies Inc., PH2, Johnson Controls, Valmet Automotive, Tiger Electronics, inc., Coulometrics, LLC, Enersys, Exide Industries Limited and other players are listed in a final report.

Ttek Assemblies Inc-Company Financial Analysis