Electric vehicles will account for more than 80% of battery demand in the next 20 years

A new report from new energy vehicle research institute IDTechEx shows that despite some current challenges, electric vehicles are expected to account for 79% of EV market revenue and 83%
of battery demand in the next 20 years.

According to the research firm, the reason why cars continue to lead the EV industry is that they have long been the focus of government policy due to their popularity and the need
to reduce road emissions.

Currently, electric vehicles are the largest segment in the electric vehicle industry, with sales set to more than double to more than
6.
4 million units by 2021.

But the industry also faces challenges, including the Russia-Ukraine conflict and insufficient metal supply
.

"As the economy opened up after COVID-19 restrictions, sanctions against Russia limited oil and gas supplies, electricity and gasoline prices climbed
.
At the same time, factors such as automakers' efforts to cope with a lingering chip shortage, a new round of lockdown measures in China, rising raw material prices, and shortages of auto parts such as wiring harnesses produced in Ukraine will all add to the industry
.
”

IDTechEx data shows that many EV manufacturers have begun to respond to the new situation
by raising prices or delaying and limiting production.

"The price increase is not insignificant
.
In 2020, Tesla's base Model 3 sold for $39,990 — and $
46,990 in 2022.
In March, Rivian announced a price increase of up to $14,500 (R1T) for its model, then faced backlash
from customers and investors.
In addition to start-ups, automotive giant Volkswagen has announced that by 2022, its electric cars in the United States and Europe will be virtually sold out
.
”

Batteries remain the largest cost component of electric vehicles, and the climbing cost of raw materials for batteries, especially lithium and nickel, is a factor
contributing to rising costs.
This is mainly due to the new round of lockdown policies in the Chinese market and the conflict between Russia and Ukraine, most of the world's lithium is processed in China, and Russia accounts for about one-fifth
of the global supply of Class 1 nickel.

"As shortages persist and the supply of EV components eaten up by the automotive industry, the EV truck market is also affected, with the EV truck market becoming the second largest battery demand
by 2042," the report states.
Tesla's Semi is a battery-electric Class 8 long-haul truck that was originally scheduled to be produced in 2020; The target now is 2023
.
Semi needed new large-size 4680 batteries, but limited battery production was prioritized for high-demand cars, generating more profit
per kWh.
”

IDTechEx mentioned that as the shortage continues, electric leisure boats may also have to consider new deals
with new suppliers.
"Although the non-automotive industry has less demand for batteries, they still need them
.
Improving the efficiency of the overall EV powertrain, rather than focusing on pure battery development, will be key – meaning silicon carbide power electronics, more efficient motors, 800V platforms, solar bodies and fewer cables
.
”

Despite the growing challenges, consumer and government demand for electric vehicles remains very strong
.
As the challenges increase, the transition continues
.