Strategy Analytics has identified potential growth, a $1bn shift, for lithium battery business according to its new report - New Hybrid & Stop-Start Powertrains Offer Greater Potential For Lithium Batteries.
The report shows that to meet fuel economy and emission mandates and compete rivals in the market, Automobile firms will be looking at improving their hybrid powertrains efficiency.
For this development, the companies will require batteries that can pack more energy.
Moreover, lithium batteries will be used to implement stop-start applications, which require coasting feature to enable the engine to be switched off while the vehicle is in motion.
Strategy Analytics automotive electronics service analyst Kevin Mak said that the electrification developments will offer lithium battery business a boost.
"Recent developments in lithium chemistries, such as from Leyden Energy, are increasing the power density and cycle life needed for these new powertrain requirements," Mak added.
"Leyden Energy's push into stop-start, for example, is a result of auto makers demanding further improvements from their suppliers, who have still yet to persuade consumers of the benefits of electrified powertrains against their cost premiums in the absence of a true breakthrough in battery technology."
