The electrification of transport is not limited to passenger cars, as there are significant opportunities for battery innovation in various transport applications. The market for non-car electric vehicle batteries is projected to grow at a compound annual growth rate of 15.8% from 2023 to 2034.
Different segments of the electric vehicle industry require different battery chemistries. Electric cars often use high nickel content NMC and NCA batteries for longer range and increased energy density, but these batteries may have stability and cycle life issues. Mid-nickel NMC variants like NMC 532 and 622 are better suited for applications that require higher throughput and daily mileage, such as commercial delivery vans and trucks.
In Europe and North America, turnkey pack manufacturers prefer NMC-based chemistries over LFP batteries due to their superior energy density. However, the cycle life and C-rate performance of NMC batteries can be competitive with LFP batteries. For 2-3 wheelers and micro-cars, cost considerations drive battery choices, with lithium-ion batteries gradually replacing low-cost lead-acid batteries. Na-ion batteries are also emerging as a promising alternative for these lower-power mobility applications.
When it comes to commercial electric vehicles, modular pack designs are preferred to meet the needs of multiple sectors and vehicle models without the need for fundamental redesigns. Battery requirements for electric trucks, heavy-duty vehicles, and off-road vehicles pose additional challenges, requiring low-cost solutions with extended cycle life and ruggedization.
While third-party and turnkey pack manufacturers are generally relied upon for these segments with lower volumes, OEMs and automotive suppliers are increasingly bringing battery expertise in-house through acquisitions and partnerships. This allows them to expand their electrification product offerings and meet their own vehicle electrification needs.
Non-car applications also play a crucial role in battery technology development and data collection for battery management systems (BMS). Cloud analytics provide insights into battery life, optimization strategies, and fault diagnostics, allowing commercial vehicle users to optimize asset utilization and prolong the lifespan of their EVs.
The electrification of transportation requires tailored battery solutions for diverse vehicle segments. Technological advancements in cell-to-pack designs, innovative battery chemistries, and the integration of advanced BMS technologies and analytics are driving electrification across various transportation sectors.
