Market Trends of Middle-East Electric Vehicle Battery Industry
This section covers the major market trends shaping the Middle-East Electric Vehicle Battery Market according to our research experts:
Lithium-ion Battery is Expected to Dominate the Market
- Lithium is majorly used in battery applications for the production of lithium batteries. The battery application segment accounted for the largest share of the Middle-Eastern region in 2021.
- Lithium-ion batteries can be categorized into two segments, namely, disposable and rechargeable. Disposable lithium batteries use lithium in the metallic form as an anode. These batteries have a longer life (high charge density) than other standard batteries. These batteries find applications in critical devices with long life, such as pacemakers and other electronic medical devices implanted for many years.
- Also, in November 2021, Australian lithium exploration and development company Lepidico announced the signing of an agreement with Khalifa Industrial Zone Abu Dhabi (KIZAD), a subsidiary of AD Ports Group's Industrial Cities & Free Zone cluster, to establish the first lithium-ion battery production facility in the Middle East, utilizing a first of its kind designed process. The plant covers a land area of around 57,000 sqm. Additionally,y Lepidico plans to invest USD 95 million for the chemical conversion plant in Abu Dhabi for an initial term of 25 years.
- Furthermore, in March 2022, a joint venture between Dubai's Regency Group and Seashore Group announced their plans to launch the first battery recycling facility in the UAE by January 2023 and the region's first hi-tech lithium-ion battery production plant in two years.
- In the last couple of years, there has been a significant rise in EV sales in the Middle East region, which can be ascribed to the government initiative to lower carbon emissions in the region. In 2020, the total EV sales were around 4,421 units which increased to 7,554 units in 2021.
- Owing to the o above points, Lithium-ion battery is expected to dominate the Middle-East Electric Vehicle Market during the forecast period.
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United Arab Emirates to Grow Significantly
- The United Arab Emirates is one of the leading economies in the Middle East region. In the last couple of years, the country witnessed a rise in passenger car sales; in 2020, the passenger car sales were around 1,54 thousand units which increased to 208 thousand units in 2021.
- However, OEM manufacturers are competing to expedite the process of dedicating resources to create fully electric models in the United Arab Emirates. Dubai has been working toward its long-term goal of electrification. It has launched several initiatives over the past few years to encourage sustainable choices among its residents.
- For instance, to promote the United Arab Emirates' plans for green mobility solutions and as part of its plan to have 25% of the city's trips converted into driverless journeys by 2030, the city completed the construction of a significant number of charging stations in the emirate by 2025. It exempts registered electric vehicles from charging fees until 2021 and parking fees until 2022.
- Further, in May 2022, M Glory Holding Group, an investment company in Dubai, announced it is soon likely to open an EV manufacturing plant, marking its foray into the highly competitive EV market amid the UAE's strategy to expand its manufacturing sector. The AED 1.5 billion facility at Dubai Industrial City - which will have a total land area of 93,000 square meters - will be one of the largest in the Middle East and aims to make 55,000 EVs a year. This, in turn, culminates in the growth in the usage of EV batteries for vehicles.
- Additionally, in September 2022, Khalifa Industrial Zone Abu Dhabi announced that it would construct a 25,000 square meter electric vehicle assembly facility, which will be operated by NWTN, an intelligent electric vehicle (EV) company for the manufacturing, research and development, and vehicle testing of electric vehicles. This will aid in the usage of EV batteries across the country.
- Therefore, owing to the above points and the country's recent developments, the United Arab Emirates is expected to grow significantly in the forecast period.
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