The global EV battery market is expected to witness sustainable growth (CAGR of 16%) from 2020 to 2025 due to the rising demand for electric vehicles across the world. Moreover, many countries are implementing policies with the focus to deploy and improve EV infrastructure, leading to market growth.
For instance, the Government of India is planning to set up 69,000 charging stations across the country by 2030. Moreover, the increasing efficiency starting from charging station set-ups to fast charging of the electric vehicle is expected to create a significant growth opportunity for the market in near future.With the growing requirement for EV batteries, the suppliers are finding newer sourcing and procurement methods for optimizing the cost of manufacturing, reducing the volatility of obtaining raw materials, and improving profitability.
Leading EV battery suppliers are mostly manufacturing EV batteries for their in-house charging infrastructure development. Hence, the competition is particularly high among the smaller regional EV battery suppliers.
An increase in mergers and acquisitions, coupled with diffused customer concentration, has enabled the EV battery suppliers to secure add-on offerings to realize growth in new geographies.
Raw materials, including lithium, graphite, MN+Li+Co, are the biggest cost component of EV battery manufacturing; accounting for more than 60% of the total cost.
The electric vehicle battery market procurement intelligence report provides a detailed analysis of the cost structure of the service along with the prevalent pricing models that prominent suppliers in the market opt for.
The majority of the big players in the market are based out of APAC. It is also the fastest-growing market, owing to the supportive policies of China's government and the development of China as the global EV battery manufacturing hub. However, the majority of the EV battery produced in China are sold to domestic electric vehicle manufacturing companies. Hence, countries like Japan and South Korea are the preferable sourcing destination of Western Countries, most of the major suppliers in these markets have comparable functional and operational capabilities.
Since 2015, Japan has been a constant presence in the top 5 electric accumulator exporters globally. The exporting reached its peak in 2016 but since then it has not matched the previous heights majorly due to a shift in the supply chain toward China and other Southeast Asian countries
From a sourcing perspective, the majority of the suppliers opt for a hybrid or bundled outsourcing engagement model as it reduces the complexities associated with in-house production.
Suppliers widely prefer approved provider operating models to reduce risks and improve the potential for value creation. As such, suppliers are expected to move from offering generic services to proprietary services in the future. The report also provides details regarding quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis.
b. The global EV battery market size was estimated at 564 GWh in 2019 and is expected to reach 654 GWh in 2020.
b. The global EV battery market is expected to grow at a CAGR of 16% from 2019 to 2025 and reach 1,374 GWh by 2025.
b. Increasing production of electric vehicle and government initiatives towards sustainable development are some of the major driving factors of EV battery market.
b. LCC/BCC sourcing analysis indicates China to be one of the best sourcing destinations for EV batteries.
b. Some of the key manufacturers in the EV charging connector market are LG, Panasonic, Tesla, CATL.
b. The EV battery market is concentrated with the top five players occupying more than 50% of the market.
b. The raw materials account for more than 60% of the overall manufacturing cost of EV batteries.
b. The key raw materials for manufacturing EV batteries are lead separator, lithium, graphite, nickel, etc.
b. Prevalence of regional sourcing practices, increasing spend transparency, migration to cloud-based procurement tools, and standardization of contract period are some of the best practices in the EV battery market.
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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