Cell to Pack Battery Market Size, Share & Analysis

[232 Pages Report] The global cell to pack battery market size was valued at USD 18.7 billion in 2023 and is expected to reach USD 79.0 billion by 2033, at a CAGR of 15.5%, during the forecast period 2023-2033. The rise in demand for low-cost, lightweight, and high-energy-density batteries in electric vehicles has positively influenced the development of the cell to pack battery market. Also, the government initiatives for increasing the electrification of buses in public transport have created the opportunity for the growth of the cell to pack batteries due to their long-range driving capacity with fast charging feature.

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Cell to Pack Battery Market Dynamics

DRIVER: Growing technological advancements in batteries

There have been substantial improvements made by several companies in EV battery technology and increased R&D efforts to make it a viable alternative to conventional vehicles. Many major battery manufacturers like CATL (China), and LG Energy Solution. (South Korea), BYD Company Ltd. (China) and C4V (US) have emphasized their research and development activities to produce advanced battery technologies to gain a competitive edge. Advantages like less material requirement and a reduction in the number of process points in the production line while manufacturing a cell to pack battery due to the elimination of modules in the battery would also benefit the manufacturers by minimizing a certain amount in their production costs. For instance, in June 2022, CATL (China) unveiled its Qilin battery, the third generation of its CTP technology. It delivers a range of 1,000 km and has an energy density of up to 255 Wh/kg. The battery is expected to be mass-produced in 2023. In March 2020, BYD Company Ltd. (China) developed the battery blade technology, which eliminated the use of modules in the battery. The name is derived from the battery-shaped cells. Such technological advancements would drive the demand for the cell to pack batteries during the forecast period.

RESTRAINT: Limiting the use of electric vehicles

EVs have gained significant popularity across prominent geographies in the past few years due to increased awareness of zero-emission vehicles and several benefits of EVs, mainly for city or short-distance travel. However, there has been some exception to the growing trend.

Some European countries are planning to ban or restrict electric vehicle sales. For instance, Switzerland is preparing to cope with possible power cuts and blackouts. As a result, the country is planning to limit or ban the usage of electric vehicles. Further, it is also facing energy crises due to the Russia-Ukraine War. The main source of power generation in the country is hydro plants and energy imports from other European countries such as France, Russia, and Germany. However, due to conflicting scenarios, the supply chain has been disrupted, and scarcity of natural gas in countries like France and Germany has reduced electricity production to the lowest level in these countries. Due to the prevailing situation, Switzerland drafted an emergency proposal in December 2022 to partially ban EVs. The longevity of the Russia-Ukraine war would further deepen the energy crisis in other European countries to follow similar steps. This would impact the demand for electric vehicles and EV batteries, impeding the growth cell to pack battery market. Similarly, the high cost of charging infrastructure, rising concern for battery recycling, and development of thermal or nuclear power sources of electricity would also question the adoption of EVs, thus contracting the growth of CTP market growth during the forecast period.

OPPORTUNITY: Advancement in differential technology

The commercial vehicle segment, which includes trucks and buses, has also been focusing on developing electric models due to rising emission regulations. Owing to stringent emission norms, many OEMs like AB Volvo (Sweden), Daimler (Germany), BYD Company Ltd. (China), Tesla (US), Tata Motors (India), and Solaris Bus & Coach sp. z o.o. (Poland) have been working toward the development of heavy-duty electric trucks and buses. With the EV battery technology improvement, OEMs are developing long-ranged electric trucks. For instance, Tesla (US) delivered its first electric semi-truck in December 2022, which was announced in 2017. The truck is powered by four independent motors with a battery range of 500 miles.

Governments are also encouraging the usage of electric buses for public transport to control carbon emissions in urban areas. Due to increased demand for high-energy-density battery vehicles, the electrification of intercity travel electric buses has risen in many countries like India, China, Germany, France, and Poland. Thus, the demand for high-energy batteries in commercial vehicles would create a growth opportunity for the development of cell to pack batteries during the forecast period.

CHALLENGE : Battery design and initial costs.

One of the significant challenges faced in manufacturing cell to pack batteries is the battery design. Every vehicle battery has different requirements from the design perspective, whether it is a passenger car, a delivery van, a special purpose car like a sports car, or a heavy commercial vehicle like a truck or bus. The production of cell to pack batteries for such different vehicle applications requires high investment and setup costs and would demand high shifting costs if there is any design change.

Another significant challenge in selling high-energy technology batteries is their initial exorbitant costs. EV battery manufacturing is capital-intensive and needs high investment. It involves many steps, including the procurement of materials, battery management system, and cell manufacturing, which requires a high level of competency and resources across the supply chain. Apart from the initial investment, the cost of electricity can be a challenge in some countries, which is constantly rising. This can hinder the demand for EV batteries, negatively affecting the cell pack battery market.

Cell to Pack Battery Market Ecosystem

The prismatic form is estimated to hold the cell to pack battery market by battery form segment during the forecast period

Prismatic cells will lead the cell to pack battery market by battery form segment as this technology's most preferred cell form. This is mainly due to its advantages as prismatic cells are large, contribute to higher energy density, and have a compact structure than cylindrical type cells as the internal layers of the anode, cathode, and separators are folded into a cubic or flattened spiral form. A single prismatic cell may hold the same energy as 20 to 100 cylindrical cells. These benefits have prompted the higher usage of prismatic cells in cell to pack battery technology. In 2021, Tesla announced using lithium iron phosphate (LFP) batteries using prismatic cells in all standard-range vehicles globally. CATL (China) introduced the CTP3.0 battery, the Qilin battery based on a prismatic structure offering 13% higher energy density than Tesla's 4680 battery, developed with a cylindrical configuration. In February 2020, Panasonic Holdings Corporation and Toyota Motor Corporation formed a joint venture- Prime Planet Energy & Solutions, Inc. specializing in automotive prismatic batteries. Hence, the rising need for high energy density with better space utilization in cell to pack batteries would drive the demand for prismatic battery form in the future.

Blade battery is expected to be the largest in the present time for the cell to pack battery market

In March 2020, BYD Company Ltd. launched a patented technology – ‘blade battery’- based on cell to pack technology, eliminating the usage of modules. Based on the cell's shape, the battery is termed the blade battery. Leveraging this technology, BYD launched various passenger vehicles in China and received a positive response in the domestic market. In China, more than 85,000 and 5,000 units of BYD Han EV and BYD Tang were sold in 2021. With more models to be launched, the BYD Company Ltd. and Blade battery market is expected to boost in coming years.

Further, the company's vision to gain mass success triggered it to expand outside China aggressively. It launched a few models, such as e6 MPV and Atto3, available in the Indian market. e6 is the electric MPV available for the B2B segment, whereas Atto3 SUV will be available from 2023 onwards in the domestic market. Additionally, in October 2022, Maruti and Toyota announced using Blade batteries from BYD in their upcoming EV models in India by 2025.  In July 2022, BYD Company Ltd. announced its entry into the Japanese market and would launch three models named Atto 3, Dolphin, and Seal in the early months of 2023. Additionally, the company also entered the European market as BYD Tang is available in Norway and some other European markets and entered in other countries of Europe, including Germany and the UK. Further, the company also offered HAN model in the US, which is equipped with blade battery technology. These technological innovations and global expansion strategies allow to reap an early mover advantage to BYD Company Ltd. in cell to pack battery market, and gaining technical stability in commercial vehicles will ensure a significant revenue boost from blade battery technology at a global level.

Asia Pacific holds the dominant position in the regional market for the cell to pack battery

Asia Pacific is projected to lead the cell to pack battery market during the forecast period, mainly due to the dominance of China. China is predicted to claim more than 90% of the market in passenger cars. The country is home to major battery suppliers such as CATL and Sunwoda Electric Co. Ltd.  Additionally; major OEMs include Tesla (US) (Model 3), BYD Company Ltd. (China) (Atto3, e6 MPV, Han EV), Xpeng (China) (P7), and NIO (China) (ET7) are gaining momentum in the Chinese market. These players have developed and introduced CTP batteries in some of their EV models. The trend is expected to continue, prospering the cell to pack batteries demand in Chinese market. Other key automakers of Asia Pacific region such as Toyota Motor Corporation, Hyundai Motors, and Daihatsu Motor Co., Ltd. among others have announced to launch cell to pack battery technology in upcoming EV models from 2023-2024 onwards. Rising demand of electric mobility to achieve zero emission, significant investments by automakers, and government initiatives and incentives program will drive electric vehicle and cell to pack battery in the region.

Key Market Players

Contemporary Amperex Technology Co., Limited. (China), BYD Company Ltd. (China), LG Energy Solution. (South Korea), Tesla (US), XPENG INC. (China), C4V (US), and Sunwoda Electronic Co., Ltd. (China). These companies adopted new product launches and expansion to gain traction in the cell to pack battery market.

Recent Developments

• In Nov 2023, Volkswagen Group China has begun producing battery systems at a new factory in Hefei, China for its MEB platform EVs in the country.  This marks the Volkswagen Group the first wholly-owned battery manufacturing venture in China and is the first VW Group facility to manufacturer next-generation cell-to-pack (CTP) EV batteries.
• In July 2023, The FAW-Fudi which comes under BYD (FinDreams) first battery pack which is based on BYD Blade battery technology has rolled off its production line. This expansion by FAW-BYD enhanced the localization of power battery production. These batteries will power electric vehicles of FAW Group, and EVs from joint ventures like FAW-Volkswagen, FAW-Toyota, etc.
• In November 2022, BYD Company Ltd. (China) launched the Atto 3 electric segment SUV in the Indian market, equipped with the blade battery technology battery pack. The company claimed a range of 521 km with a 60.48 kWh battery pack.
• In November 2022, BYD Company Ltd. (China) entered a partnership with LEAL Group (Mauritius), an automotive dealership, in Mauritius to promote electric vehicles with blade battery technology.
• In November 2022, LG Energy Solution. (South Korea) and Compass Minerals (US) entered into an agreement that states that LG Energy Solution. will supply 40% of Compass Minerals' annual lithium carbonate production over six years, likely to commence in 2025. The companies also expect to cooperate in good faith on a portion of phase II production of battery-grade lithium hydroxide
• In September 2022, Sunwoda Electronic Co., Ltd. has entered the cell to pack battery market by introducing a new product named SFC480 battery. The new battery type offers a fast-charging solution. As per company details, 5 minutes of charge allows for a200 kms travel range.

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