Electric Vehicle Battery Formation and Testing Market Size, Share, and Industry Analysis By Application (Manufacturing and Testing), By Vehicle Type (Passenger Vehicle and Commercial Vehicle), By Battery Type (Lithium-Ion, Lead-acid Batteries, Nickel Metal Hydride (NiMH) Batteries, and Others), By Sourcing Type (In-house and Outsourcing), and Regional Forecast till 2032

The global electric vehicle battery formation and testing market is expected to grow over the upcoming years owing to the global demand for automobiles and increasing disposable income. The vehicle sales are expected to increase due to technological advancements and the growing perception of vehicles as essential items.

• In December 2024, Australia’s leading automotive industry association FCAI (Federal Chamber of Automotive Industries) endorsed the Commonwealth Government's initiative to promote a rise in battery electric vehicle sales through the introduction of USD 150 million in low-interest loans aimed at workers earning under USD 100,000 annually, including essential workers.

Electric Vehicle Battery Formation and Testing Market Driver

Rising Need for Electric Cars

The increase in EV adoption is a result of the global effort to decrease greenhouse gas emissions. Governments are putting in place measures and encouragements to support electric mobility, which in turn is boosting the need for dependable and high-quality batteries.

• The total electric vehicles (EVs) sold in the India this fiscal year is more than 25% higher compared to the corresponding months of the financial year 2023-24. In reply to a question in the Lok Sabha, Minister of State for Heavy Industries, Bhupathiraju Srinivasa Varma stated that around 1.36 million electric vehicles were registered in the nation from April 1 to November 30, 2024. This is 25.64% more than the 1.4 million EVs recorded in the same months of the prior fiscal year.

Expanding Sector of Commercial Vehicles

The increasing demand for advanced testing solutions is being fueled by the growing popularity of electric commercial vehicles, which need strong battery systems to meet more demanding performance requirements.

Electric Vehicle Battery Formation and Testing Market Restraint

Variety of Battery Types

The testing processes are made more complex by the growing number of battery chemistries such as lithium-ion and developing solid-state batteries. Every field of chemistry has specific demands for creating and maintaining safe processes, leading to ongoing investments in testing methods and equipment, resulting in increased expenses and operational difficulties.

Electric Vehicle Battery Formation and Testing Market Opportunity

Advancing Technologies

The incorporation of AI, machine learning, and automation into battery testing procedures is improving effectiveness and precision. This advancement in technology is opening up fresh opportunities for market expansion.

• In December 2024, researchers from Stanford University’s Precourt Institute for Energy and SLAC National Laboratory demonstrated that a typical electric vehicle (EV) battery might endure 40% longer than what conventional laboratory assessments predict.  This implies that electric vehicle owners might not need to purchase a new battery pack or change their car for several more years, resulting in a better return on their choice to switch to electric.

Segmentation:

Key Insights

The report covers the following key insights:

• Incidence and Prevalence of Selective Chronic Diseases, Key Countries, 2023
• Aging Population Statistics - By Key Countries
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Overview: Regulatory and Reimbursement Scenario
• Number of Hospitals, Long Term Care Centers, Key Countries, 2023
• Impact of COVID-19 on the Market 

Analysis by Application

Based on application, the market is segmented into manufacturing and testing.

The manufacturing segment holds the largest share in the EV battery market. It includes making battery cells and packs, which are essential for the entire supply chain. With the increasing popularity of electric vehicles, there is a rising requirement for battery manufacturing processes that are scalable and efficient. The testing segment, traditionally considered less important than manufacturing, is undergoing fast expansion. The increase is fueled by the necessity for stricter quality control and verification of performance as battery technology progresses.

Analysis by Vehicle Type

Based on vehicle type, the electric vehicle battery formation and testing market is divided into passenger vehicles and commercial vehicles.

The passenger vehicle segment holds the top position in the EV market as consumers are increasingly conscious of the environment, government incentives, and advancements in battery technology. Although smaller than passenger vehicles, the commercial vehicle market is also growing quickly. This consists of electric buses, delivery vans, and trucks.

Analysis by Battery Type

Based on battery type, the electric vehicle battery formation and testing market is divided into forged lithium-ion, lead-acid batteries, nickel metal hydride (NiMH) batteries, others.

Lithium-ion batteries, sometimes called "forged" in specific situations, are the leading technology in the EV industry. Comparatively, NiMH batteries are becoming less popular in the passenger EV market due to the increasing dominance of lithium-ion technology, but they are still in demand for hybrid vehicles and specialized markets.

Analysis by Sourcing Type

By sourcing type, the electric vehicle battery formation and testing market is divided into in-house and outsourcing.

The primary method used by major automakers and battery manufacturers is to produce and test batteries in-house. It is common for companies to choose to retain authority over the quality, technology, and procedures utilized in battery manufacturing. Quality control and protection of intellectual property continue to drive the in-house segment.

The trend of outsourcing is increasing, particularly among smaller businesses and new ventures lacking sufficient funds to establish large internal facilities. Outsourcing is on the rise, especially as smaller companies look for flexibility and cost reductions, and with the increasing demand for EVs.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The Asia Pacific market dominates the electric vehicle battery formation and testing market. The area has a strong supply chain for battery materials such as lithium and cobalt, crucial for battery production, owing to advanced manufacturing and technology in China, Japan, and South Korea. Growth in the EV battery market in North America, especially in the U.S. and Canada, is fueled by investments from big automakers and battery manufacturers such as Tesla and General Motors, as well as new entrants.

Key Players Covered

The global electric vehicle battery formation and testing market is fragmented with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Siemens AG (Germany)
• ABB (Switzerland)
• SAP SE  (Germany)
• Dassault Systèmes (France)
• Rockwell Automation, Inc. (U.S.)
• General Electric (U.S.)
• AVEVA Group Limited (U.K.)
• Tulip Batteries   (U.S.)
• TÜV SÜD (Germany)
• Cognex Corporation (U.S.)

Key Industry Developments

• In August 2024, IPTE disclosed a lucrative agreement with Volkswagen to create a sophisticated testing solution for electric vehicle battery packs. This project seeks to improve testing approaches in response to the increasing need for dependable battery performance due to the growing use of electric vehicles.
• In June 2024 Comau showcased its latest cell formation and testing technologies at The Battery Show Europe. Their solutions aim to improve efficiency, cut expenses, and prioritize safety in the process of manufacturing batteries.
• In February 2024, GM and LG Chem have announced progress in battery testing methods to enhance the effectiveness and dependability of battery development in their partnerships.