Advances in battery technology to increase energy density, widespread commercialization of HD EVs such as trucks and buses, and sustainable and efficient methods for sourcing and handling raw materials all contribute to a growing EV Battery market. Challenges to the market include cost and technology limitations, which remain priority concerns for consumers and automakers, but are expected to make headway during the next decade. According to a report from Guidehouse Insights, battery pack prices across all vehicle classes and powertrains are expected to experience declines by 2030, with the biggest declines observed in LD battery EVs (8.3% annual decrease) followed by LD plug-in hybrid EVs (8.1% decrease).
Today’s battery systems may use several technologies, with chemistries demonstrating varied benefits and drawbacks. Some of the more popular Lithium ion (Li-ion) technologies continue to be prominent in the market due to their cost-effectiveness and reliability. Others, such as solid state batteries, are still in their infancy and are not yet practical for commercialization but show promise in the new decade.