The battery market - Italy (2024)

1.2 A growing global market

The battery market covers a broad spectrum of activities including the manufacture, distribution, and supply of these energy storage devices. Batteries play a crucial role in numerous applications, ranging from consumer electronics and automotive vehicles to renewable energy storage and use in industrial sectors. The market is expected to grow strongly, driven by the increase in the use of UPS (***) equipment in key industries such as healthcare, oil and gas, and the chemical industry to ensure continuous power supply.

Lead-acid batteries, known for their reliability and low cost, remain the preferred choice for heavy-duty applications. However, given the low energy density and low weight of lithium-ion batteries, they are likely to gain a substantial share of the lead-acid battery market in the near future. In addition, the favorable policy environment and growing demand for consumer electronics and electric vehicles fuel expectations of strong market growth in the United States during the forecast period.

The size of the global battery market was USD ***.** billion in ****, and it is expected to reach about USD *** billion by ****. The market is expanding at a solid CAGR of **.* percent during the forecast period from **** to ****.

Global battery market value World, ****-****, in billions of USD (***) Precedence ...

1.3 The European market

Size of the European market

The European battery market is expected to reach a value of $**.** billionby the end of the year, with an estimated growth to $**.** billion over the next five years, registering a compound annual growth rate(***) of **.** percent during the forecast period.

In the medium term, the main factors that will positively influence this market include the continued decline in lithium-ion battery prices, the accelerating adoption of electric vehicles, the expansion of the renewable energy sector, and the increase in sales of consumer electronic devices. However, challenges related to the supply-demand imbalance of raw materials could dampen market growth. Nevertheless, increasing demand for rapid delivery and optimizing logistics infrastructure in Europe could generate new opportunities, particularly for lithium-ion batteries in the materials handling sector.

Among European markets, Germany stands out for the strong growth expected in the coming years, thanks to the key role of its automotive industry, which continues to evolve toward greater adoption of electric vehicles.

Size of the European battery market Europe, ****-****, in billions of dollars (***) Mordor Intelligence

Leading states in the European context

Faced with the expected rapid growth of lithium batteries, Italy does not rank among the most developed countries in terms ...

1.4 Italian Market

To analyze the size of the Italian market, we consider the turnover trend from **** to ****, according to data from the ISTAT database. Between **** and ****, there was a significant decline of **.* percent, indicating a market contraction during that period. However, there was a strong recovery between **** and ****, with an increase of **.* percent, signaling a recovery of the sector in the last available year. These data point to a market dynamic characterized by significant fluctuation within a few years.

Value of sales - Manufacture of batteries of batteries and electric accumulators Italy, ****-****, in billion euros (***) Istat

The analysis of production value is crucial to understanding the production capacity of an industry and its overall economic impact. The value of production represents the set of goods and services generated by an industry, reflecting not only economic size but also production efficiency. Its trend over the period analyzed (***) mirrors that of turnover, with a ** percent decline between **** and ****, followed by a **.* percent recovery in ****. This correlation between turnover and production value indicates that the decline and recovery in sales have also been reflected in production capacity, showing how these two indicators are closely connected and represent the overall health of the industry.

Value of ...

1.5 Foreign Market

The following graphs show the evolution of the trade balance, analyzing imports and exports of:

Lithium cells and batteries (***) - HS code ****** Lead-acid accumulators (***), i.e., lead-acid batteries - HS code ******

Lithium cells and batteries

Battery imports to Italy have dominated the market in recent years, registering significant growth. From **** to ****, the value of imports increased by **.* percent, signaling a strong dependence on foreign imports to meet domestic demand, mainly due to the growing demand for batteries for electric vehicles and electronic devices. However, in the period between **** and ****, a **.** percent decline in imports was observed, mainly due to global overproduction and reduced demand in some key sectors. This trend also had an impact on the trade coverage rate, which measures the ratio of exports to imports. Italy's coverage rate in this sector remains unbalanced, with imports continuing to far outpace exports, highlighting the need for greater domestic production capacity to reduce dependence on foreign supplies.

Imports, Exports and Coverage Rate (***) Italy, ****-****, in millions of dollars (***) UNComtrade

The main destinations of Italian exports of lithium cells and batteries show a varied geographic distribution, with Tunisia representing the first market, grabbing **.* percent of exports. This is followed by France with **.* percent, ...

1.6 Impact of recent geo-political events

According to Ipcei's analysis, the global lithium-ion battery (***) market continues to grow dynamically despite difficult market conditions, such as the aftermath of the COVID-** pandemic, Russia's war in Ukraine, and rising raw material costs[***].

Among the minimum and maximum scenarios, shown by Ipcei (***), there is a more realistic scenario, which is the one that could occur with a higher probability. According to this intermediate scenario, the compound annual growth rate CAGR is ** percent until ****; instead, from **** to ****, the CAGR would drop to * percent. There would be many reasons for this, which can be attributed to a saturation of the battery market. Other reasons that may affect the growth are: the level of investment, change in demand, cost of batteries, problems in raw material supply, political measures, international trade conflicts, shortage of skilled labor, possible economic crisis etc.

The demand for batteries will rise to *.* terawatt-hours per year (***) in **** and *.* TWh/a in ****. However, the latest developments in the battery market may expand battery cell production capacity.

Development most realistic scenario of the global lithium battery market World, ****-****, in TWh and as a percentage Ipcei

2.1 Demand in Italy

To construct a comprehensive analysis of battery demand in Italy, it is essential to make use of several sources of data, including those related to the battery collection and recycling system. These data provide valuable information on increasing battery consumption and future trends in demand. For example, an increase in lead-acid or lithium-ion battery recycling may indicate an increased demand for new batteries, signaling a continuing cycle of use and replacement. This phenomenon may be particularly relevant in industries such as automotive and renewable energy, where battery consumption is growing rapidly. Analyzing recycling data thus provides a better understanding of demand trends in the medium- to long-term, providing a more detailed picture of the market and its future dynamics. In ****, the collection of portable batteries and accumulators reached an absolute value of *,***,*** kg, registering a decrease of about ***,*** kg from the previous year. However, an increase in the collection rate was observed in the past year, from **.** percent to **.* percent. This increase is mainly due to a significant reduction in new products placed on the market.[***]

The difference between collected and placed concerns two distinct stages of the life cycle of batteries and accumulators:

Collected: refers to the amount of batteries ...

2.2 Demand drivers

Battery consumption in Italy varies according to the type of device Italians prefer to use. Batteries are used in a wide range of products, including portable devices, automobiles, renewable energy technologies, and other everyday devices.

Consumption for portable devices

The use of batteries for portable devices such as smartphones, tablets, and laptops is particularly prevalent in Italy, as these devices are widely present in the daily lives of Italians. In ****, ** percent of respondents (***) said they owned at least one smartphone. The second most popular device is headphones, used by **% of respondents, in both wireless and wired versions. None of the respondents said they do not use any of the portable devices surveyed, which is why the percentage of nonusers was *%.

Most used consumer electronics devices Italy, ****, in percent Source: ****

Consumption affecting the automotive sector

Talking about batteries in cars is crucial, as the growing popularity of electric and hybrid vehicles depends directly on battery technology, which affects performance, cost and environmental sustainability. According to the Findomestic survey, **% of Italians consider themselves informed about electric vehicles, but only **% have tried a Bev. Five percent believe electric cars perform less well, while ** percent rate them as more efficient. For refueling, **% prefer the thermal ...

2.3 Battery and accumulator collection by regions

Data on the collection of portable batteries and accumulators in the different regions of Italy, considering only the flows managed directly by the CDCNPA(***), show significant variations. Although there is an overall increase at the national level, the southern regions performed the best, with an increase close to ** percent. The Central and Northern regions, on the other hand, recorded an increase of between * percent and * percent. Nevertheless, in terms of absolute collection, the lead remains with the North, which continues to collect the largest quantities of portable batteries and accumulators. The CDCNPA, through flow management and activity monitoring, ensures efficient collection and disposal of this waste, contributing to environmental protection.[***]

Portable Batteries and Accumulators collection by region - withdrawals managed by the CDCNPA Italy, ****-****, in kg cdcnpa

2.4 Stationary storage systems

Stationary storage systems (***) of **.** percent through ****. By that year, the market could reach a value of about $***.** billion.Lithium-ion batteries dominate the field of stationary storage systems due to their high energy density and longevity, and are the main technology used for these applications. Stationary storage systems are critical not only to supplement energy from renewable sources, but also to provide frequency regulation services and grid support during peak demand. [***]

Global market value stationary storage systems World, ****-****, in billions of dollars (***) Market Data Forecast

3.1 Market structure and market dynamics

The market identified by ATECO code **.**, relating to the manufacture of batteries, batteries and electric accumulators, has shown a positive trend in recent years, showing significant growth in active enterprises. After a ** percent decline in **** compared to the previous year, mainly due to the effects of the pandemic and the resulting contraction in global demand and production, the sector experienced an important recovery in ****. In particular, the number of active companies increased by ** percent, demonstrating strong resilience and responding to a growing demand for batteries, fueled by both the spread of electric vehicles and the rise of renewable energy-based technologies. This dynamic confirms a favorable long-term trend for the industry, thanks in part to investments in innovation and sustainability.

Number of Active Firms [***] Italy, ****-****, in number Istat

In the battery, battery and electric accumulator manufacturing sector, the predominant legal form is limited liability companies(***) make up **.* percent, highlighting a presence of structured and large companies in the sector.

Legal Form Active Firms [***] Italy, ****, % Istat In line with the trend of active firms in the sector, it can be seen that from **** to **** there was a decline in the number of employees in the sector of **.* percent; from ****, on the other ...

3.3 Value chain

The chart below shows the battery value chain in Europe starting from raw material flows to battery recycling. All data below were taken from Ipcei 's analysis of the resilient supply chain in the battery industry, published in ****.

[***]

Mining: a variety of minerals are needed for battery production, such as lithium, nickel, manganese, cobalt, and graphite. In Europe, nickel and manganese are found in sufficient quantities, however, much of the nickel is destined for the steel industry and therefore not available for the battery industry. By ****, European lithium supply could increase to about ** percent. Potential manganese supply is expected to be around **%. For natural graphite and cobalt, the supply is very low at around *%;

Refining: Europe has refining capacity for nickel and cobalt and to a small extent also for manganese. Battery-grade lithium carbonate and lithium hydroxide are produced only on a very small scale. By ****, supply could increase to almost ** percent for refined lithium and almost up to ** percent for refined manganese. Nickel and cobalt processing capacity will not be able to keep up with the expected growth in cell production. Supply would be about ** percent for refined nickel and about ** percent for refined cobalt;

Component production: only a ...

3.3 Distribution channels

To fully analyze the distribution channels of the battery market, it is necessary to consider several ATECO codes representing wholesale and retail trade activities in specific sectors. One relevant code is **.**.**, which refers to wholesale trade in machinery and equipment for industry, trade and navigation not elsewhere classified (***). This code is often used for enterprises engaged in the wholesale distribution of batteries and accumulators for various uses, such as industrial equipment or machinery.

Another significant code is **.**.**, which covers the retail trade of telecommunications and telephone equipment in specialized establishments. This code includes activities related to the retail sale of batteries intended for telecommunication devices, such as cell phones and similar equipment, reflecting an important distribution channel for household and personal batteries.

Finally, **.**.** covers the wholesale trade of automotive parts and accessories, a sector that also includes the distribution of vehicle batteries. This code is relevant to automotive companies, as it covers the sale of essential components, such as batteries, to dealers and specialty garages.

An analysis of these ATECO codes makes it possible to map the different channels through which batteries reach the market, highlighting the variety of uses, from industrial to automotive and personal technology.

Distribution channels - active ...

3.4 Main actors

Major battery manufacturers in the world

In ****, the battery manufacturing sector for light electric vehicles, which includes cars, SUVs, light commercial vehicles, and pickup trucks, grew faster than the electric vehicle market itself. Battery production increased by ** percent, while electric vehicle production grew by ** percent. This gap is mainly due to the introduction of new vehicle models equipped with larger batteries and, in some cases, larger capacity batteries than previous models. Indeed, automakers are aiming to improve the range and performance of vehicles, necessitating batteries with higher energy capacity. This increase in battery capacity not only responds to consumer demand for vehicles with greater range, but also reflects technological developments that enable more powerful batteries without compromising vehicle space or efficiency.

In ****, CATL strengthened its leadership in the lithium-ion battery market, increasing its share from ** percent to ** percent, thanks to the rapid growth of its major customers, including the China-made Tesla Model Y, SAIC's MG*, and the success of Li Auto. The introduction of new Qilin and Shenxing batteries promises to further consolidate its leading position through **** and beyond.

BYD is the second largest battery manufacturer, growing ** percent year-on-year from ** percent to ** percent of the market. In addition to the success ...

4.1 Supply analysis

Current and planned supply

In summary, lithium-ion cells are currently produced at several sites in Europe, only one located in Italy, and many more are planned to be started by **** throughout Europe. Plants with large production capacities are located almost exclusively in Poland and Hungary. Germany, on the other hand, has the largest number of production sites.

The operating capacity of all manufacturers in the region under consideration was about ** GWh/a in **** and, according to Ipcei, in **** this capacity would reach about ** GWh/a. Should the planned cell factories be completed they would increase the maximum production capacity to about **** GWh/a. Again according to Ipcei's analysis, this capacity should be sufficient to meet cell and vehicle production in Europe[***].

lithium-ion batteries

The lithium-ion battery is a type of secondary battery, so it is rechargeable, consisting of cells in which lithium ions move from the negative to the positive electrode via an electrolyte during discharge and vice versa during charging.

Battery applications include a wide range of products such as electronics, small and large appliances, wireless headsets, portable power tools, electric energy storage systems, electric vehicles, and others.

An automotive battery is used to power vehicle electrical systems when the ...

4.2 The prices

In ****, the battery market continues to see significant price reductions, especially for lithium-ion batteries, which are increasingly dominant in the industry. Lithium iron phosphate (***) for stationary storage systems.

NMC (***) batteries, used in many automotive and industrial applications, have also seen a significant drop, with average prices of $** per kWh. The price drop is fueled by oversupply and production capacity that has exceeded global demand. This scenario has generated fierce competition, especially in China, where production costs are among the lowest in the world. For example, in China, battery packs for electric vehicles can drop as low as $*** per kWh, while costs in Europe are on average ** percent higher.

Looking ahead, experts predict that prices will continue to decline, with a potential further drop to $** per kWh by ****, thanks to innovations such as solid-state batteries and new manufacturing technologies. However, in European and U.S. markets, domestic capacity growth and government policies could slow this price decline, due to higher energy and labor-related costs.

As for lead-acid batteries, although they remain an economical option, their sales are declining relative to lithium, especially in energy-dense sectors such as electric vehicles and storage systems. Lead-acid battery prices are more stable, but their popularity is ...

4.3 AI and the battery market

In ****, the battery and artificial intelligence (***) markets are becoming increasingly intertwined as AI is integrated to optimize battery production, consumption, and recycling. AI is playing a crucial role in the development of advanced battery management technologies, enabling improved efficiency, durability and safety of energy storage systems. This is particularly evident in electric vehicles, where AI is being used to monitor and manage battery performance in real time, predicting possible failures and optimizing charging cycles to maximize durability. [***] In addition, AI is also being used to recycle batteries, helping to reduce disposal costs and promote circular economy solutions, an increasingly important aspect in the energy industry.

AI-based technologies are also supporting the development of new materials, such as those used in lithium iron phosphate (***) batteries, making them cheaper and better performing.

The synergy between AI and batteries is set to grow further, with applications ranging from smart grid management to renewable energy integration, making energy storage systems more flexible and efficient. [***]

These innovations are revolutionizing the battery industry, making it a key element in the global energy transition.

4.4

5.1 Regulatory framework

Regulations related to the battery market in Italy and Europe are mainly developed in two areas: environmental management and industry regulation. The regulations address issues related to the production, placing on the market, use, recycling and disposal of batteries. The main regulations at the European and Italian levels are outlined below.

European Legislation

At the European level, the most relevant legislation is the EU Battery Regulation, which is evolving to adapt to the needs of the ecological transition and circular economy. The new legislation, adopted by the European Commission in June ****, replaces the old Directive ****/**/EC, with the aim of improving the life cycle sustainability of batteries. The regulation refers to transparency requirements on the origin of raw materials, the environmental impact of production, and the lifespan of batteries. In addition, manufacturers must ensure that batteries are easy to recycle, with specific targets for the recovery of critical materials such as lithium, cobalt, nickel, and lead. By ****, the EU aims to have an efficient network for battery recycling with the goal of recovering at least ** percent of waste. The regulation also sets strict criteria for batteries for electric vehicles, portable devices and industrial batteries, with specific standards for durability, efficiency and ...

5.2 Bonuses and Incentives

The Italian market for batteries, especially lithium-ion batteries, is experiencing sustained growth, although not at the level of other leading nations such as Germany or China. However, Italy is investing in the creation of gigafactories to increase domestic production, thanks to projects such as those of Faam, Itavolt and ACC. In this context, there are incentives and bonuses at both national and European levels aimed at supporting the development and adoption of battery-related technologies, with a strong focus on sustainability and electric mobility.

At the European level, Italy benefits from incentives from the Next Generation EU and European Green Deal funds, which promote the adoption of low-emission technologies. In addition, the National Recovery and Resilience Plan (***) allocates significant resources to the renewable energy sector and technological innovation, with a focus on the electric vehicle battery supply chain. Incentives include tax breaks, grants, and funding for research and development of new sustainable technologies. [***]

In addition, to promote the transition to electric mobility, there are specific incentives such as theEcobonus for the purchase of electric vehicles, which supports the demand for lithium-ion batteries, and subsidies for the installation of charging stations. [***]

These incentives are part of a broader strategy to reduce emissions and ...

5.3

6.1 Segmentation

• FIAMM
• EXIDE
• Fib S.P.A. - Faam
• Midac
• Sunlight European Battery Assembly srl