The demand for Lithium Batteries are expected to be multiplied by 7 until 2030 and reach an output of more than 2000 GWh/year. This increase is largely driven by the transition to electric vehicles. Bloomberg’s research division estimates that roughly 60 percent of all new car sales in the world will be electric by 2040. In the global vehicle fleet, there will be more than 400 million electric vehicles in the same year. Other sectors will also see an increase of Lithium Battery usage, with one prominent area being energy storage.
GROWTH IS INEVITABLE
Looking at announcements, it is quite clear that both small and large players expect a high growth rate the coming years. In addition, there are also newcomers who are striving to become more established in the global market.
The major players in the lithium battery market are the large cell producers, utilizing economies of scale in automated production, and car companies, who in increasing share in-source the vehicle pack integration. In between, there is a cluster of companies focusing on modules and packs which don’t require as large of volumes to be competitive.
In today’s post, we will go through how a packaging partner can address challenges faced by companies in the Lithium Battery market during this wave of growth.
CHALLENGES WHEN GROWING
With the volatile nature of lithium batteries, it is vital to comply with regulations to secure growth and safety. Companies are scaling production from zero to large industrial volume in a short time span and expanding across continents. It is common for there to be internal flows between production hubs and external flows to customers, which often include intercontinental shipping. The complexity and risks involved put higher demand on the packaging partner.
During the past couple of years, analysts have stated that it is strategic for car OEMs to source batteries close to their production sites. This is now happening, with the Asian cell and battery manufactures taking the lead and expanding into Europe and the Americas. Using a global packaging partner enables you to use the same partner when growing geographically, creating synergies in efficiency, quality and optimization.
It may be that you are new in the market with the aim to grow. When choosing packaging partner, it is important to take the whole journey into consideration. The choice of the right packaging solution is defined by a number of criteria, including battery type, transport mode, statuses and more. As you grow, you might change location or transport mode, which would influence requirements on the packaging solution. Your packaging partner should be able to secure your packaging from day one, but also throughout the journey and for years to come.
A consequence of growing is that more material needs to be used. However, a larger volume also brings greater impact when optimizing your supply chain for environmental impact and cost efficiency. One way to do this is to investigate your packaging flow. With increased shipments and a trend towards regionalization, a returnable packaging alternative can be studied.
No matter if you are big or small, growing fast has it challenges . By working with a complete packaging solution provider, you minimize the administration regarding packaging while also ensuring that all your packaging needs are covered.
With the sender of batteries being responsible for safe shipments, it becomes crucial to have a packaging partner with expertise and a long experience in the field. With a packaging partner that also has multi-material solutions with existing certifications, you can reduce lead-times and ensure compliance in all flows and statuses. Using a multi-material approach also opens the door to continuous optimization of your solution by not being limited to certain materials.