Significant reductions in battery cost must for electric vehicle batteries industry to grow to nearly $8 billion market by 2015

DUBLIN, IRELAND: Research and Markets has announced the addition of the "Electric Vehicle Batteries" report to its offering.

The automotive industry will launch dozens of new plug-in hybrid and battery electric vehicles as it begins the gradual process of moving away from petroleum based fuels and towards battery power.

These vehicles will rely almost exclusively on lithium ion (Li-ion) batteries, while hybrid vehicles will slowly switch from nickel-metal hydride (NiMH) technology. However, Li-ion batteries today increase the cost of vehicles by 30 to 50 percent, which limits the attractiveness of the vehicles.

The initial market for electric vehicles will be largely dependent on government subsidies and incentives; significant reductions in battery cost are seen as a requirement for the industry to grow to the nearly $8 billion market that the authors forecast by 2015.

Japan, which has been a leader in batteries for hybrid vehicles, is likely to continue to play a leading role, while China, Korea and Japan are also likely to all be significant suppliers of electric vehicle batteries.

There are currently more than a half dozen battery chemistries with unique properties for power, energy density and life cycle performance that are being commercialized, but this report anticipates a consolidation in the market.