All the major automotive manufacturers are developing EVs -- considered the next generation of vehicles and a means for the OEMs to differentiate and stay ahead of competition. Escalating oil prices and environmental concerns are driving governments to grant incentives and encourage zero emission vehicles, endorsing the importance of EVs and stepping-up the demand for EV batteries. EV batteries come with different chamical compositions like lead acid, NiMH and lithium-ion. The rapidly evolving market for EVs is boosting demand for new battery technologies and greater supply. New analysis from Frost & Sullivan, finds that the EV Li-ion battery chemical and materials market is expected to grow at a compound annual growth rate (CAGR) of 125 per cent from 2010 to 2016 for products like anodes, cathodes, electrolytes as well as binders and casings.

Only a few market participants can supply separators, electrolytes, anodes and cathodes, particularly in Europe, causing a bottleneck in the EV batteries value chain. Chemical and battery companies have failed to keep pace with the development of vehicles as electric vehicles have been as it took a lot of time to develope the market. The EV industry has finally taken off very suddenly, causing a potential bottleneck in battery technology supply and very few companies are in a position to capitalise on the opportunities. The market is likely to face significant price pressure from downstream companies as well as increasing competition from low-cost production locations. The chemical industry can help achieve these goals with the development of innovative materials, chemicals, and solutions as EV batteries need considerable improvement in terms of energy storage capacity, size, weight, and cost. There is a clear trend in the market that chemical companies are partnering with the key battery producers to supply the required volumes and enhance existing battery technology. More at http://bit.ly/bPq6mU