In the next 20 years, electric vehicle (EV) batteries will occupy 83% of global battery demand.
That’s according to research from IDTechEx, estimating that in two decades time, cars will account for 79% of EV market revenues.
It does, however, predict that prices will only continue to rise, as popularity increases and barriers add to cost.
The report cites the Ukraine war, COVID-19 and hiking electricity and petrol prices as the key reasons for EV parts jumping up in price.
EV batteries are no different – and the report intimates that the mining costs of lithium and nickel will have an impact on the overall battery market.
The analysis reveals that as shortages continue and key battery minerals are prioritised for the growing EV sector, non-automotive sectors that use the same technologies will suffer.
This will lead to the EV market making up 83% of demand, as countries and automakers rush to meet quotas and net zero targets.
EV sales more than doubled in 2021, reaching 6.4 million and the report cites the price of a Tesla Model 3 increasing from $39,990 (£32,560) in 2020 to $46,990 (£38,345) this year as an example of the industry trying to cope with increasing delays.
These price increases, along with industry demands are two key factors the report provides for the battery market shifting so heavily to accommodate EVs.