Rapid Uptake of Electric Mobility Triggers Momentum of Lithium-ion Gigafactory Market
Electric mobility is emerging at a rapid pace, propelling the demand for lithium-ion battery. Fairfield Market Research anticipates that the steady investment in electric vehicles (EVs) along with other industrial and commercial applications of lithium-ion battery will further boost the growth of global lithium-ion Gigafactory market. High demand for lithium-ion battery cannot be met with traditional battery production facilities, which makes it imperative to have the facilities or mega-factories that can support mass production of lithium-ion batteries in line with in-house development of battery packs, and assembly of EVs. This is projected to pave the way for lithium-ion Gigafactory market in future. Typically, a Gigafactory has the battery cell production capacity of more than 1 GWh. For instance, Tesla Inc. has been developing such facilities that are entirely powered by renewable energy sources for its in-house operations. With more industry leaders announcing investments in Gigafactory following the suit, lithium-ion Gigafactory market is all set to receive a strong impetus.
Cost Saving with In-house Development and Assembly to be an Added Advantage
Widespread adoption of EVs, growing R&D activities around lithium-ion batteries, formation of strategic contracts with automakers, and utilisation of renewables for in-house power are some of the key drivers pushing global lithium-ion Gigafactory market toward a bright future. The main advantage of lithium-ion Gigafactory is the in-house assembly of EVs and development of lithium-ion battery packs under one roof. This minimises the overall EV manufacturing costs, increasing the affordability of electric vehicles by manifold. Tesla has been developing such facilities, which will be entirely powered by renewable energy sources for its in-house operations. A majority of lithium battery manufacturers are investing in Tesla’s Gigafactory to grab additional market share soon. Analysts predict that Gigafactory would be the potential solution to cost optimisation for EV industry.
The COVID-19 Impact Has Been Harsh
Supply chain bottleneck due to COVID-19, high CAPEX and OPEX, followed by depletion and rising prices of raw material such as lithium, and cobalt have been some of the recent restraining factors for lithium-ion Gigafactory deployment. Lithium, the lightest and key element of all lithium-ion batteries, is sourced from just a few countries. More than 90% of all lithium comes from Australia (44%), Chile (34%), and Argentina (13%), which makes the business highly dependent on these nations. The COVID-19 pandemic has impacted not only the electric vehicle production but also the Gigafactory operations. Most of the production facilities either remained closed or were unable to attain full production capacity due to shortage of staff and raw materials during initial months of the viral outbreak. In April 2020, Tesla reduced its staff at Nevada, the US Gigafactory by a whopping 75% amidst the pandemic situation.
China to Lead Asia Pacific Lithium-ion Gigafactory Market in Terms of Capacity
Asia Pacific dominated lithium-ion Gigafactory market in 2019 owing to the deployment of high-capacity Gigafactory based in China. More planned projects in India, and a few other Asian nations are expected to drive demand for Gigafactory by 2030. Currently, there are more than five operational lithium-ion Gigafactory projects here. Globally, out of the 70 announced Gigafactory projects in 2020, more than 40 are based in China. Unlike China, Europe does not have a coherent industrial strategy to attract the large-scale battery manufacturing sector, which is impeding the expansion of lithium-ion Gigafactory market in the region.
Between 2018 and 2030, lithium-ion battery demand is set to surge about tenfold and
Europe is expected to be the new value pocket for key players involved in li-ion Gigafactory market. The region houses a number of planned projects under pipeline, expected to come into operations by 2030. Tesla is planning for new Gigafactory in Berlin. Sweden is the key market in the Europe region. This will reposition Europe in a competing position against Asia Pacific throughout the forecast period.
Global Lithium-ion Gigafactory Market: Competitive Landscape
The top three players in global lithium-ion Gigafactory are Tesla, LG Chem, and Contemporary Amperex Technology Co. (CATL). As of 2019, Tesla has been the spearheading lithium-ion Gigafactory market and the company’s market share is expected grow past 35% by 2030 owing to new Gigafactory establishments in recent times. Besides, other key players participating in the competition landscape of lithium-ion Gigafactory market are BYD Co. Ltd., Panasonic Corporation, SAMSUNG SDI CO, LTD., BAK Power Battery, Saft, and Toshiba International Corporation.
The lithium-ion Gigafactory market has been segmented as below:
Key Elements Included In The Study: Global Lithium-ion Gigafactory Market
Post Sale Support, Research Updates & Offerings
We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.Read more