Why The Lithium-Ion Battery Market Is Growing

Experts expect the lithium-ion market to grow at a phenomenal 13.1 percent CAGR and reach a size of 135.1 billion USD by 2031. Based on those stats, it’s evident to see that low-cost, energy-efficient lithium-ion batteries are taking the world by storm. But what’s the deal behind their surging popularity? Below, Big Battery discusses three reasons why the lithium-ion battery market is growing so quickly and so dramatically.

Use in EVs

With concern over global warming rising around the globe, businesses have to make their products eco-friendlier. This is especially the case for the automotive industry, which has ramped up production of electric vehicles, or EVs, in response to growing consumer demand for green vehicles. Because lithium-ion batteries are energy-efficient and eco-friendly, manufacturers are overwhelmingly choosing them as the main power source for their EVs, driving demand worldwide.

Global Domination

The US and China are the two largest manufacturers of lithium-ion batteries, accounting for over 90 percent of the world’s production. But recently, other countries, such as Canada, India, and Indonesia, have dipped their toes into the lithium-ion market. Businesses are investing millions of dollars into erecting battery manufacturing factories around the globe. Take TitanGreen, for example, which has recently established factories in the Americas. As these funded factories crop up, battery production will substantially increase, and lithium-ion products will gradually become more accessible and less expensive. This will drive demand further and increase lithium-ion battery use globally.

Military Use

As the US military looks to upgrade its fleets with newer technology, it’s increasingly relying on lithium-ion batteries as a source of power for aircraft, vehicles, and other equipment. This military investment has been a huge driver of recent market growth.

Because lithium-ion batteries are lighter than conventional lead acid and nickel-cadmium batteries, they can provide greater energy density for longer periods. By replacing traditional battery types with lithium-ion, the military can reduce the weight of their vehicles and increase range and endurance capabilities.

In short, the lithium-ion battery market is growing because businesses, government agencies, and consumers alike are beginning to see the overwhelming benefits that lithium-ion batteries provide over other power options.

If you want to see what all the fuss over lithium-ion batteries is about, BigBattery has large lithium battery packs that you can outfit your golf carts, RVs, vans, and more with. Once you observe the power and efficiency of a lithium-ion battery firsthand, you’ll understand why this small but mighty piece of tech is so coveted.