Growth in the electric vehicle (EV) market slowed in 2024 compared to predictions, highlighting the need for innovation in areas like battery pack design to reduce costs and boost adoption. This is according to IDTechEx‘s report, “Materials for Electric Vehicle Battery Cells and Packs 2025-2035.” China experienced strong growth driven by greater plug-in hybrid (PHEV) adoption. Europe’s EV market share remained similar to 2023 values. he United States saw only a 7% growth in the first half of 2024 compared to 2023. Research by IDTechEx suggests that the introduction of lower-cost models will drive further market growth.

Lower-Cost Batteries Drive Market Expansion

Since the battery makes up a significant portion of an EV’s production cost, innovation in this area will be crucial for reducing costs. Many companies are turning to lower-cost battery chemistries, like lithium iron phosphate (LFP). In 2024, 33% of the global EV market used LFP cells. However, this decision involves a trade-off in energy density, affecting vehicle range. Companies are exploring solutions at the pack level to balance these trade-offs.

Pack Design and Energy Density

The volumetric energy density of NMC 811 cells is about 60% higher than LFP cells. However, the cost is 20% higher per kWh. If cells make up 30% of a battery pack’s volume, a 60kWh NMC 811 battery occupies 300 liters. Switching to LFP increases the volume to 490 liters for the same capacity. Using a cell-to-pack approach eliminates modules and increases cell size. This reduces the LFP pack’s volume to 210 liters. The LFP pack becomes 70% the size of the original NMC 811 pack. It is also 20% cheaper in cell costs and reduces pack material costs.

The same structure can apply to NMC cells, resulting in a smaller battery pack. It can also result in an increased vehicle range by adding more cells. This cell-to-pack approach enhances the viability of LFP packs, making it easier to fit the necessary battery capacity into a vehicle.

Emerging Battery Technologies and LMFP’s Role

Lithium manganese iron phosphate (LMFP) has entered the market and is expected to fill the gap between NMC and LFP in cost and energy density. Combined with pack design improvements, LMFP provides automakers another option to balance performance and price. Different trim levels might use different battery chemistries. IDTechEx’s report forecasts growth for LMFP cells, predicting they will capture about 11% of the global EV market by 2035.

Optimizing Battery Pack Design

Automakers are reducing materials used around battery cells to increase pack energy density and reduce manufacturing costs. Optimizing components such as modules, cell interconnects, thermal management, sealants, adhesives, insulation, and fire protection can lead to more efficient and cost-effective battery designs, regardless of cell chemistry.

Solid-State Batteries and Future Battery Pack Design Considerations

Experts consider solid-state batteries the future of battery technology, offering high energy density and improved safety. However, pack design remains crucial for their viability. If solid-state cells are packaged like older pouch cell battery packs, the energy density benefits may not be realized at the pack level. Safety concerns remain, requiring fire protection and safety measures. For solid-state batteries to be viable, cell format and pack design will play a critical role.

Analyzing Materials and Market Trends

IDTechEx’s latest report analyzes and forecasts market trends in cell and pack design. It also determines the demand for materials such as nickel, cobalt, aluminum, manganese, phosphate, electrolyte, graphite, silicon, iron, copper, binder, separator, and conductive additives. Additionally, the report covers pack materials such as aluminum, steel, copper, glass fiber reinforced polymer, carbon fiber reinforced polymer, thermal interface material, fire protection material, cold plates, coolant hoses, electrical insulation, and pack seals.

For more information about this IDTechEx report, visit www.IDTechEx.com/EVBattMat.