The Australia battery market is expected to grow at a CAGR of more than 12% during 2020 - 2025. Factors such as declining lithium-ion battery prices, increasing solar PV installations, and increasing adoption of electric vehicles are driving the battery market in the country. However, the insufficient supply of raw materials to maintain the demand is likely to restrain the growth of the market during the forecast period.
- The lithium-ion battery segment is expected to dominate in the Australia battery market during the forecast period.
- Australia is expected to become a hub for the entire lithium-ion battery value chain in the coming years, which, in turn, is expected to create an opportunity for the Australia battery market in the near future.
- The increasing adoption of electric vehicles is expected to drive the Australia battery market over the forecast period.
Key Market Trends
Lithium-ion Battery Technology to Dominate the Market
- The lithium-ion batteries were initially developed to serve the consumer electronics sector as these batteries last for a large number of charging cycles, have a high capacity-to-weight ratio, and high energy density, which makes them ideal for consumer electronics applications.
- The rise in urbanization and consumer spending across the country are expected to drive the demand for technically advanced devices, in turn, leading to a rise in demand for lithium-ion batteries.
- Australia being the world’s largest producer of lithium, and with mineral reserves that cover almost 90% of the elements that are required in Lithium-ion battery production, Australia provides an enormous opportunity for players engaged in the entire value chain of Li-ion battery production.
- The lithium-ion battery is gaining more popularity compared to other battery types, majorly due to its favorable capacity-to-weight ratio. Other factors that contribute to boosting its adoption include better performance, higher energy density, and decreasing price.
- The emergence of new and exciting markets, such as electric vehicle and energy storage systems (ESS), for both commercial and residential applications, has been boosting the demand for lithium-ion battery in the country.
Increasing Adoption of Electric Vehicles to Drive the Market
- In the early years of the lithium-ion battery market, the consumer electronics sector was the major consumer of the batteries. But in recent years, the electric vehicle (EV) manufacturers have become the biggest consumers of the lithium-ion batteries, owing to the growing sales of the EVs.
- The EVs do not emit CO2, NOX, or any other greenhouse gases, and hence, have a lower environmental impact compared to conventional internal combustion engine (ICE) vehicles. Due to this advantage, the adoption of EVs is expected to grow in Australia.
- As of 2018, Australia electric car stock has reached 10.95 thousands of vehicles from 0.60 thousands of vehicles in 2013. This substantial growth rate owes to the increasing adoption of EVs, which in turn boosts the demand for the battery market.
- The EVs mainly use lithium-ion batteries. The declining lithium-ion battery costs have resulted in bringing down the cost of EV manufacturing, owing to which EVs are expected to grow further over the forecast period.
The Australia battery market is moderately fragmented. Some of the major key players in the market include Century Yuasa Batteries Pty Ltd, EnerSys, Robert Bosch (Australia) Pty Ltd, Exide Australia Pty Ltd, and VARTA AG.
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