According to data published by Allied Market Research, the global lithium ion (Li-ion) battery market is projected to reach $46.21 billion by 2022 and at a CAGR of 10.8 percent. The increasing demand for durable rechargeable batteries is attributable to increasing usage of rechargeable electronic devices, grid storage systems and electric vehicles.
Although, utility storage and portable devices control majority of the lithium-ion market, it is projected that electric vehicles will take over that market in the coming years. Electric vehicles are growing more popular due to its environmentally impact, which led governments to aggressively encourage developments in the industry and companies to invest in R&D.
Lithium batteries are compact, but the energy density allows for the vehicles to drive a further range than previous battery options. Gerard Reid, equity researcher and fund manager at Alexa Capital, explained, "Lithium is quite unique as a material in that it is very light with the lowest reduction potential of any chemical element which allows batteries based on lithium to have unbeatable performance. Lithium-ion batteries costs are likely to fall another 50 percent by 2020 to $100/kWh while at the same time energy density should increase by 20 percent, which will help bring the range of the average electric vehicle (EV) towards 500km."
(Source: FinancialBuzz.com)