In this article, we discuss the 10 most advanced countries in battery technology. If you want to read about some more advanced countries in battery technology, go directly to 5 Most Advanced Countries in Battery Technology.
Advanced battery technology manufacturing covers the creation of technologically advanced batteries with better design, safety, high energy capacity and more importantly, funding for research. Both commercial and educational institute research facilities are looking for methods to advance battery technology i.e., increasing capacity, reducing charging times, and lowering prices. The ultimate aim is to make available even more affordable batteries that will enable inexpensive grid storage and significantly longer ranges for EVs.
Concerns over the availability of crucial battery components like cobalt and lithium are driving a need for alternatives to the prevalent lithium-ion chemistry. Some of the top firms working towards this goal include Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV), among others.
Advancement in technology means that a country has the means to do better research for more efficient battery technology and designs, better development strategies and modes, and smooth processing and manufacturing facilities. This significantly differs from the countries which can manufacture more batteries than others. Because just manufacturing involves the assembly and creation of a large number of batteries with cheap labor. We will consider the countries in this list which have the highest number of patents, research and funding involved in this field.
Several countries are key players in the battery tech manufacturing industry and claim a major share of the global market. These countries are home to large battery manufacturers, and often have well-developed supply chains and infrastructure to support the production of batteries on a large scale. Some of the key battery tech manufacturing countries include China, Japan, South Korea, the United States and Germany.
The technology that revolutionized the world in terms of batteries was the invention of the lithium-ion battery. John B. Goodenough, an American scientist, developed the first lithium-ion (Li-ion) battery in 1980 using a cobalt oxide cathode. This invention, later in 2019, won Goodenough the Nobel prize in chemistry. His invention proved to be one of the breakthroughs of the 21st century as it allowed the development of handheld electronic devices, gadgets and electric cars. At an age of 100 years, Goodenough is still pushing the boundaries of science by working more energy-efficient and sustainable batteries.
These days, lithium-ion batteries, which have good energy-to-weight ratios, high open circuit voltages, and low self-discharge rates, are the most widely used rechargeable battery types for portable gadgets. These batteries have a long lifespan and are frequently used in consumer gadgets. Asia-Pacific (APAC) leads the lithium-ion battery industry as a result of the growing purchasing power of consumers and higher demand for electric cars. The Asia-Pacific lithium-ion battery recycling market is anticipated to expand to a value of USD 5,047.18 million by 2029, at a CAGR of 22.3% over the course of the forecast period, as stated by data bridge market research.
The next breakthrough in battery tech would be the commercialization of solid-state batteries. Solid-state batteries employ solid electrodes with a solid electrolyte composed of ceramics such as oxides, glass, and sulphides, as opposed to traditional lithium batteries, which use liquid and polymer gel electrolytes. These batteries may be recharged up to seven times and have a ten-year lifespan while having a greater energy density than lithium-ion batteries. Toyota Motor is regarded as having the most patents for solid-state batteries. Although solid-state batteries for EVs are not yet commercially available, they are likely to do so starting in 2025. In recent news, QuantumScape started delivering its latest solid-state battery prototypes to its clients.
In the Asia-Pacific region, Chinese firms dominate the electric vehicle (EV) battery market, accounting for 56% of the market share. Several of the ten largest battery manufacturers are based in China. South Korean companies and Japanese firms also have a significant presence in the market. The North American and European blocks are trying to keep up with the Asian manufacturers and researchers to decrease their dependence on them. Technology-wise Japan and the US lead the race with several famous names such as Toyota motors and Panasonic in Japan and QuantumScape, A123 Systems, Enovix, SES AI, and Amprius Tech in the US.
The global battery technology market size is expected to grow from $95.7 billion in 2022 to $136.6 billion by 2027 at a compound annual growth rate of 7.4%. The adoption of electric and hybrid vehicles and the increasing usage of wearable devices are responsible for the growth of the battery technology market size. Some other sectors, such as solar and wind energy systems, are also merging and the world is making its way towards environment-friendly energy.
Our Methodology
These were picked from a careful assessment of the battery industry. The details of each battery tech country are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions. The countries have been ranked according to the average number of patents filed by businesses based in these countries between 2017 and 2019.
Photo by Mika Baumeister on Unsplash
Most Advanced Countries in Battery Technology
10. Canada
Average no. of patents filed between 2017-2019: 3441
The battery market in Canada is anticipated to grow at a CAGR of 18.13 percent over the course of the forecasted years, reaching a revenue share of $6770.67 million by 2028. The projected timeframe is from 2022 to 2028, with 2021 serving as the base year for the market study. The strategic actions made by major market participants and the rising sales of consumer electronics are the main drivers of the market expansion in the nation.
Numerous strategic activities are being carried out in Canada by major battery industry participants. Joint ventures, investments, partnerships, and other strategies are among those anticipated to support the expansion of the battery market in Canada throughout the course of the forecast period. For instance, the American-European manufacturer Stellantis stated in 2022 that it will collaborate with LG Energy Solution. At a new Canadian facility, the alliance plans to produce batteries for electric cars.
Additionally, the joint venture has allocated almost $4 billion for the facility’s development in Windsor, Ontario. The factory will be in charge of providing batteries for a sizeable chunk of Stellantis’ North American production of electric vehicles. Therefore, over the anticipated years, these variables are expected to boost the market growth in Canada.
Last year, in September, the Canadian battery manufacturing industry got the best opportunity to invest in the battery industry. This is made possible by the US’s new electric vehicle tax credit which states that the EVs batteries and the vehicles themselves be made in the North American region. If Canada wants to cash this opportunity, they have to take the right decisions. Ideally, this new opportunity will open 250,000 job openings by the year 2030. Additionally, the Canadian economy can grow by USD 48 billion annually.
Just like Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Canada is also home to some of the most advanced battery firms in the world.
9. Italy
Average no. of patents filed between 2017-2019: 3786
Italy, with roughly 3700 patents to its name in battery technology, hopes to completely phase out coal power in favor of greener energy sources including gas, wind, and solar by the end of 2025. The country’s battery industry is anticipated to grow as a result of this change in energy generation since batteries may be utilized to store excess renewable energy for later consumption. Additionally, the country’s telecommunications industry is expanding quickly, and rising demand for batteries in data centers will probably have a favorable effect on the local battery market. The total amount of renewable energy installed in 2021 was 56,987 megawatts (MW).
The market for electric vehicles is expanding quickly in Italy’s automotive sector, propelling that nation’s battery market. The government of the nation has adopted a variety of initiatives and steps to encourage the use of electric vehicles (EVs) there. The majority of these EV-related activities have a favorable effect and are most likely to influence the country’s battery industry.
Italvolt announced ambitions to build an Italian EV battery facility in spring 2023, in August 2022. The 45 GWh battery cell facility that houses the EV battery plant is located in Piedmont, a region of northwest Italy. The firm anticipates obtaining the building permit in the early spring of 2023. MNC (nickel, manganese, cobalt) lithium-ion battery cells with silicon anodes will be produced at the new plant for automobile manufacturers to assemble into packs. Italvolt, in January 2023, also announced that it has made a deal with Israeli battery startup StoreDot to manufacture Li-ion batteries for the aforementioned manufacturing plant.
8. United Kingdom
Average no. of patents filed between 2017-2019: 5180
UK has several EV battery companies such as British Volt, Aceleron, Williams Advanced Engineering, Zenobe, Moixa and Oxis Energy etc. As the world is gradually shifting from fossil fuels to renewable energy resources, the UK government plans to ban the sale of diesel and petroleum cars by 2030. Hence, there is a growing demand for batteries in automobiles, aerospace, electrical utilities and other related sectors.
The government of the UK has promised nearly £500 million in the next four years for mass-scale production of batteries. British Volt has plans for a £2.6bn Gigafactory in Northumberland on the site of the former Blyth Power Station. The Company will produce 300,000 lithium-ion battery packs each year. These will be supplied to the automobile electric industry.
In May 2022, British Volt, a UK-based battery manufacturer, revealed that it has acquired EAS, a battery cell developer and manufacturer, to ramp up and develop its larger 46xx high-performance cell formats. The company said that this technology will be delivered to customers faster and more efficiently. The company has also collaborated with Aston Martin, the ultra-luxury car maker, to launch its first electric vehicle in 2025.
7. France
Average no. of patents filed between 2017-2019: 7733
France is taking part in the race for the most technologically advanced battery manufacturing country in the world with an average greater than 7000 patents for the years 2017, 2018 and 2019. According to the report by Bonafide Research, the market for EV batteries in France is expanding quite quickly. According to Statista, the revenue of the EV battery manufacturing segment is expected to reach USD 13.19 billion in 2023. During the forecast period of 2023 – 2027, the CAGR is anticipated to reach 18.65% which is equivalent to a projected market volume of USD 26 billion.
This is due to efforts made by the government, automakers, and OEMs in the battery sector to lessen their reliance on nations outside the European Union for the production of batteries. There is now a lot of reliance on the acquisition of raw materials and other stages of the value chain, thus various attempts are made to construct a domestic supply chain with the establishment of mega factories, which are in varying phases of development in various regions of Europe.
Two gigafactories for the production of EV batteries are now being built in France, one of which will have a 9 GWh capacity by 2024 and be expanded to 30 GWh by 2030 through strategic cooperation between Renault Group, Verkor, and AESC (occupied by Envision Group). The other is from ACC, a cooperation between Stellantis and TotalEnergies subsidiary Saft. This will encourage the expansion of the batteries business in France and lessen reliance on Asian and North American nations for EV batteries.
Some of the key companies in the French market include Verkor, Saft, easyLi and Olenergies. Verkor is creating two types of batteries including large cells called pouch cells and small cells called cylindrical cells. The modules made from the cells are subsequently sent to customers. Verkor has decided to concentrate on producing significant volumes of battery cells for the stationary storage and electric car industries.
6. Taiwan
Average no. of patents filed between 2017-2019: 10702
The covid-19 pandemic had positive impacts on the global battery manufacturing industry and Taiwanese companies took advantage of it as stated by researchers at the Industrial Technology Research Institute (ITRI). Especially the Taiwanese battery pack manufacturing industry benefited from it. In the years 2017, 2018 and 2019, an average of 10,000 patents were filed by the Taiwanese battery manufacturers
With US$4.16 billion in sales in 2019, Taiwan has a far bigger presence in the battery pack assembly industry and had close to 13% of the global market share. Simplo, DynaPack, Celxpert, Delta, and Foxlink are competitors in this market. Due to Taiwan’s connections to international IT supply chains, battery pack assemblers are well-positioned to capture a sizeable market share. According to ITRI statistics, Taiwanese companies manufacture over 60% of laptop batteries worldwide, over 45% of tablet batteries, and 11% of power tools.
Apart from that, Taiwanese battery manufacturers are looking to get into the EV battery market which not only provides great growth opportunities, and high-profit margins and is the upcoming major trend in battery manufacturing. Taiwan’s current EV battery production is limited to small vehicles such as EV 2-wheelers.
In September 2022, ProLogium, a battery manufacturer from Taiwan was seeking to expand its operation of solid-state batteries into Europe for establishing a 120 GWh capacity plant. This plant, when established, will be able to contribute to the emerging EV battery market.
Just like Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Taiwan is also home to some of the most advanced battery firms in the world.
Click to continue reading and see 5 Most Advanced Countries in Battery Technology.
Suggested Articles:
- Jim Cramer Stock Portfolio
- Top Dividend Stocks To Invest In
- 15 Best Cloud Computing Stocks To Invest In
Disclosure. None. 10 Most Advanced Countries in Battery Technology is originally published on Insider Monkey.