Plug-In Vehicle Battery Production GraphPanasonic's standing in the plug-in and hybrid battery production industry has zoomed ahead like a Tesla Model S taking off from a standstill. That's appropriate because the Japanese company's relationship with the California-based automaker has been the primary reason for its growth, which looks like it will continue to be rapid.

According to new numbers from Lux Research, battery manufacturers are producing 1.4 gigawatt-hours worth of batteries for plug-in and pure battery-electric vehicles per quarter, up from under 200 MWh in early 2011. Lithium-ion batteries account for 68 percent of the current total, while nickel-metal hydride batteries (like the one used in the non-plug-in Toyota Prius) account for 28 percent. The rest are made up of small numbers of things like solid-state batteries.

Panasonic has been the primary beneficiary of electric vehicle growth (click on chart to enlarge). The company has a 39percent market share for plug-in and hybrid batteries, while NEC has 27 percent and LG Chem has 9 percent. As for demand, Toyota, Tesla and Renault-Nissan account for about three-quarters of all batteries used for plug-in and hybrid vehicles. Panasonic expanded its battery-production deal with Tesla last October. There are more details in the Lux Research press release below.
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Panasonic Has 39% Share of Plug-In Vehicle Batteries, Thanks to Its Deal With Tesla

Batteries for Plug-Ins and Hybrids Were a $660 Million Market in Q1 2014, Led by U.S. Demand, According to Lux Research's New Automotive Battery Tracker

BOSTON, MA--(Marketwired - May 6, 2014) - Batteries for hybrids and plug-in vehicles are growing fast, more than tripling over the past three years to reach 1.4 GWh per quarter, according to the Automotive Battery Tracker from Lux Research. Panasonic has emerged as the leader thanks to its partnership with Tesla, capturing 39 market share) and LG Chem (9%) in 2013.

"Even at relatively low volumes -- less than 1% of all cars sold -- plug-in vehicles are driving remarkable energy storage revenues for a few developers, like Panasonic and NEC, that struck the right automotive partnerships," said Cosmin Laslau, Lux Research Analyst and the lead author of the new Lux Research Automotive Battery Tracker.

"To understand this opportunity, we combined a comprehensive data set of vehicle sales with detailed battery specifications for each car and supplier relationships, yielding a flexible tool that uncovers unexpected insights into this fast-changing market," he added.

Lux Research analysts used historical and current vehicle sales, detailed battery specifications for each car, and supplier relationships to create the Automotive Battery Tracker. Among their findings:

• The electric vehicle drivetrain is the most lucrative for battery developers. Hybrids move the most cars -- the Toyota Prius is the best-selling car in Japan and California -- but their small battery packs mean they require less energy storage in total than full electric vehicles like the Nissan Leaf. Hybrids demanded 481 MWh of batteries in Q1 2014, while electric vehicles called for 774 MWh. Nonetheless, in terms of demand by OEM, hybrid leader Toyota (28) and Renault-Nissan (21%).
• Regulations and consumer preference drive significant regional differences. China has the highest ratio in the world of plug-in vehicles to hybrids, but its average EV battery packs are less than half the size of those sold in the U.S. Adoption of hybrids also varies widely: Japanese consumers bought more than three times as many hybrids as U.S. drivers did, despite Japan being a much smaller automotive market overall.
• Lithium-ion extends its lead, but NiMH sticks around. Lithium-ion batteries captured 68 -- but kept aloft by Toyota's loyalty to the lower-cost technology for its top-selling Prius. Next-generation solid-state batteries continue to make only a small dent, with less than 1% of the market.

The Automotive Battery Tracker is produced by the Lux Research Energy Storage Intelligence team.

About Lux Research
Lux Research provides strategic advice and on‐going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.


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    • 1 Second Ago
  • 13 Comments
      Michael Walsh
      • 7 Months Ago
      MAKE THEM CHEAPER!
        Michael Walsh
        • 17 Hours Ago
        @Michael Walsh
        But as good!
        itsme38269
        • 17 Hours Ago
        @Michael Walsh
        They're already something like 50% cheaper than they were when the Roadster came out, and keep getting cheaper by 7-10% per year. This is not true with gasoline, or gas vehicle components. EVs are inevitable. But, there's no need to wait, they're here now. Get one for your next car. Everyone.
      Dave D
      • 7 Months Ago
      OH, SO CLOSE!!! It should have been reported as 1.21GW, not 1.4! LOL https://www.youtube.com/watch?v=I5cYgRnfFDA Yes, I know the difference between GW and GWH, but it's still funny :)
      Grendal
      • 17 Hours Ago
      Well duh. We have been doubling the amount of EVs every year so 3X in 3 years is actually a little low.
      purrpullberra
      • 7 Months Ago
      I wonder about the availability of each type for each manufacturer and costs graphed too. The Tesla batteries are all used immediately. Is there still a glut of battery production capacity outside of Tesla/Panasonic? And maybe someone could make a graph that shows what it may look like when the gigafactory comes online. I'm way too busy. I'll go out on a limb and say that this growth has just begun.
      • 17 Hours Ago
      Some days I just feel lucky that we have any plugin cars to argue about. Why not pick on the automakers who refuse to give us a choice of plugin cars! Encourage the ones that do.
      Jon
      • 17 Hours Ago
      How does the Tesla giga-factory affect Panasonic? Is Panasonic helping Tesla with the factory? Is Tesla licensing Panasonic chemistry? Is the giga-factory a win-win for Tesla and Panasonic or just a win for Tesla?
        Grendal
        • 17 Hours Ago
        @Jon
        They make more money. Panasonic is trying to put in a billion on the $5 billion factory. Probably and probably asking for exclusivity too. It would be a win-win for both as long as the Gen III Tesla is as big as Tesla expects it to be. Unless something goes horribly wrong then I expect this to be a big win for everybody.
        JakeY
        • 17 Hours Ago
        @Jon
        Tesla can license Panasonic chemistry and also get Panasonic to fund some of the investment (Tesla already said they won't fund the full factory themselves, only $2bil/$5bil). Panasonic gets a cut of the profits for their investment and licensing of technology. If the factory turns out to have excess cell capacity (although it's designed not to), it can also potentially supply Panasonic's other customers in the North American region (rather than shipping from Japan).
          Jon
          • 17 Hours Ago
          @JakeY
          Will Panasonic be intimately involved in designing the factory and setting up operations (for the cell side; Tesla knows packs)? Tesla has no expertise in manufacturing cells. This is basically a joint venture, correct?
          Grendal
          • 17 Hours Ago
          @JakeY
          Makes sense and yes.
      • 17 Hours Ago
      Some days I just feel lucky that we have any plugin cars to argue about. Why not pick on the automakers who refuse to give us a choice of plugin cars! Encourage the ones that do. http://www.kingwellbattery.com
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