Market Trends of South America Battery Cell Industry
This section covers the major market trends shaping the South America Battery Cell Market according to our research experts:
Automobile Batteries Segment to Dominate the Market
- As part of Brazil's five-year logistics and mobility program known as Inovar-Auto (2012-2017), the government launched Rota 2030 in December 2018. In order to improve energy efficiency in the transportation sector, the Rota 2030 program is a big boost for the Brazilian electric vehicle market. As electric vehicle deployment increases, the automobile battery segment of the market studied is likely to benefit significantly.
- As a result of increased interest in electric vehicles, higher fuel prices, and government initiatives to promote infrastructure related to electric vehicles in Argentina, the demand for electric vehicles is expected to grow in the near future. Additionally, the battery cell market is expected to be influenced by investment in electric vehicle manufacturing in the country. For instance, in February 2022, Chery, a Chinses automobile manufacturer, plans to invest in EV manufacturing, The company aims to produce battery electric vehicles in Argentina and plans to produce 50,000 units annually in the initial stage, The plant is located in Santa Fe province, Argentina.
- Furthermore, increasing government initiatives and growing investments, particularly in Brazil, Chile, and Argentina, is expected to drive the demand for electric vehicles, which, in turn, is expected to drive the aumobile battery cell market in the region during the forecast period.
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Brazil to Dominate the Market
- As a result of EVs, energy storage systems, and consumer electronics, especially mobile phones and laptops, prismatic cells have a greater demand in Brazil. Furthermore, cylindrical cells are also used in EVs, and consumer electronics and punch-type cells are primarily used in consumer goods, military, and automobile applications. As a result, the demand for battery cells is expected to increase in the country as more battery-operated goods are sold.
- In Brazil, economic development is leading to a significant expansion of commercial infrastructure. Due to the boom in economic activity, the country is experiencing an increase in data centers, which will create opportunities for lithium-ion batteries. For data centers to operate continuously, electricity supplies are crucial, which leads to batteries being deployed as the most desired feature.
- The energy storage systems in the country are primarily deployed in solar-powered homes (residential ESS) for power backup applications. As the country's population grows, so does its demand for renewable energy, especially rooftop solar PV, which will in turn drive the demand for energy storage systems, which in turn is expected drive the market for prismatic battery cells in the coming years.
- As a result, the Brazilian battery cell market is expected to witness robust growth during the forecast period, in the wake of the increasing sales of electric vehicles and growing renewable energy in genration mix.
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