The expansion of the electric vehicle battery housing industry is projected to be fueled by the increasing demand for electric vehicles, the development of charging infrastructure, the requirement for lightweight materials, and the pursuit of improved range capabilities, among other drivers.
According to the BIS Research report, the global electric vehicle battery housing market is projected to reach $13.54 billion by 2032 from $4.01 billion in 2022, growing at a CAGR of 13.14% during the forecast period 2023-2032.
In June 2023, Asian finance newspaper Nikkei reported that Japan intends to provide Toyota with approximately $854 million (120 billion yen) to assist the Japanese automaker in its efforts to invest in the domestic manufacturing of lithium-ion batteries utilized in electric vehicles.
Here’s the Complete Story
Toyota has revealed its strategy to embrace innovative technology and renovate its factories, indicating its firm determination to gain a more significant portion of the rapidly expanding battery-electric vehicle market. The assistance from the government arrives at a time when Japan and other U.S. allies are seeking to diversify their supply chains away from China, a dominant player in the electric vehicle battery industry.
In June 2023, the shares of Toyota experienced a 1.74% increase.
As reported by the Nikkei, Japan's trade ministry acknowledges the importance of storage batteries, particularly car batteries, for economic stability. Consequently, they have allocated $3 billion in their second supplementary budget to support the advancement and ensure the supply of these batteries.
Asia-Pacific and Japan Region to Dominate the Electric Vehicle Battery Housing Market
The Asia-Pacific and Japan region is witnessing an increasing desire for electric vehicles. The Asia-Pacific region stands out as a prominent region in terms of the adoption of electric vehicles, and this pattern is predicted to persist in the future.
Furthermore, the region boasts significant battery manufacturers. Asia-Pacific accommodates renowned battery manufacturers, including BYD, CATL, and Panasonic, among others. These companies are making substantial investments in the advancement of novel battery technologies, which, in turn, stimulate the demand for battery housings.
Alongside this, the government of Japan intends to offer financial assistance for both capital expenditure and technological advancements, with funding expected to cover approximately one-third and half of the respective expenses.
Conclusion
In the forthcoming years, the emergence of electric vehicles with extended driving ranges will lead to significant transformations in urban transportation. Several factors contribute to the expansion of the electric vehicle battery housing market, including the rising demand for lightweight solutions to enhance the range capabilities of electric vehicles and the imperative to decrease carbon emissions.
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