Greetings solar enthusiasts! Today, we’re going to delve into some exciting projections for the promising future of the lithium-ion battery industry. These batteries make up the backbone of electric vehicles (EVs) and stationary storage systems that most solar arrays for the home utilize. By having a broader knowledge about this industry, it will help you make an informed decision when considering solar panels for your home.
IDTechEx, a reputable research company, recently shared a comprehensive outlook for the global lithium-ion battery industry that offers some truly interesting insights. According to their analysis, the industry is projected to be valued at an astonishing $400 billion by 2035. One can see just how integral these batteries have become in our move towards a more sustainable future.
The lithium-ion battery market’s growth is primarily driven by the high demand for stationary energy storage and electric vehicles. You see, stationary storage is essential for integrating renewable energy generated sporadically into our grids. For instance, solar energy harvested by your solar panels for your home needs to be stored for later use during night-time or cloudy days.
Also contributing to this trend are legislative motions such as the European Union’s emissions standards and the United States’ Inflation Reduction Act, influencing both car manufacturers and solar companies to invest more in sustainable solutions.
But what does the future hold for these energy-giving powerhouses? Alex Holland, IDTechEx Research Director, forecasts that by 2035, continuous tech advancements will result in safer, more energy-dense, faster charging, and longer-lasting batteries. However, there’s a caveat: further reducing the prices of these batteries beyond present lows poses a challenging situation due to the current oversupply market.
It’s fascinating to note that the variability in battery prices in recent years has been primarily due to fluctuations in the availability of raw materials like lithium, nickel, and cobalt. This sometimes makes it tough for newer solar companies and battery manufacturers, particularly those situated outside Asia.
Despite these challenges, the impressive demand for lithium (driven mainly by batteries) and the ever-wavering supply chain conditions for nickel and cobalt, are predicted to hold sway in significant ways in the battery manufacturing market. One example Holland offered is the “NMC 811” battery—this high-demand device contains cathodes comprised of 80% nickel, 10% manganese, and 10% cobalt and could see a cost contribution from these materials of up to $60/kWh in 2022.
Overall, this panorama will influence consumers and solar companies alike in ways never before seen. As solar companies continue to offer increasingly efficient solar solutions, and more homeowners flip the switch to power their homes with solar arrays, the unique intersection between solar panels for your home and lithium-ion batteries is a topic worth keeping an eye on.
Stay tuned for more exciting insights into the world of solar and feel free to reach out with any questions as you navigate your own solar journey!
Original Articlehttps://pv-magazine-usa.com/2024/10/04/lithium-ion-battery-market-to-top-400bn-in-2035/
