Norway Electric Vehicle (EV) Battery Market Research Report, 2027

In order to halt climate change and further save the planet, the transition from conventional ICE fuel-based vehicles to sustainable mobility and electrification of transportation is essential as they constitute a major part of environmental degradation as well as pollution through emissions of harmful and toxic pollutants such as greenhouse gases (GHG), hydrocarbons, and other pollutants into the atmosphere. According to a report by the International Energy Association (IEA), 30% of global greenhouse emissions are from the transportation sector, and to overcome this, Europe has set targets of becoming carbon neutral by 2050 with investment totaling 1 trillion to support sustainable mobility. In recent times and for the long run, electric vehicles replace combustion engine-based technology with consistent and constant research and development efforts for the production of more efficient and durable electric batteries. These electric batteries are the core of electric vehicles, which must be kinder to the environment. The major function related to electric vehicle batteries is to provide and store electricity. With advancements in technology, companies are focusing on smaller and more powerful batteries. Their motive is to create battery storage systems that can hold an electric charge for long durations of time. Norway is a world leader in terms of EV adoption and usage, which has led to higher sales penetration of EVs in the Norwegian market. This is due to Norway having the highest per capita of EVs in the world with 81 EVs per 1000 residents, and having the highest share of plug-in electric vehicles in new passenger car sales in 2020, amounting to 74.8%. According to the report titled "Norway Electric Vehicle Battery Market Overview, 2027", published by Actual Market research, the Norwegian market for electric vehicle batteries is expected to gain significant momentum in the forecasted years with an average CAGR of 24.25% from 2022 to 2027. This significant growth is the result of extensive efforts by the Norwegian government to promote EVs on a large scale by providing incentives such as a 25% VAT tax, a carbon tax close to 20%, and smaller amounts for weight tax, NOX tax, and a car scrapping fee. The other steps include free parking in public places, access to use of bus and collective traffic lanes, and free battery charging at publicly funded charging stations. Norway lowered taxes on EVs to keep the price down and even exempted road tolls as an extra incentive. The opposite approach was to raise taxes on traditional cars—a kind of pollution tax. Moreover, individual municipalities such as Oslo, Baerum, Fredrikstad, and Trondheim have also offered further exemptions, which drive the growth of the EV market and thus its inter-related battery industry.

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Based on battery types, the most common kind of battery in use today is the lithium-ion battery. These devices power everything from smartphones to computers and EVs. Lithium-ion batteries are expected to remain the most widely used for EVs in the future. One of the main materials used to produce lithium-ion batteries is lithium, a light metal substance. Other necessary materials include graphite, a form of carbon, as well as the metals cobalt, manganese, and nickel. Norway is one of the leading nations in Europe in the mining of these materials. However, in light of future demand, efforts are being made to establish a localised domestic circular supply chain in order to reduce reliance on outside nations and the environmental impact of battery disposal. Because widespread EV adoption began around 2015, most EV batteries will reach the end of their useful life after 2025.NiMH and solid-state batteries are the other types mainly used in HEVs. However, solid-state batteries are expected for use in 2-3 years in BEVs because of their better driving ranges, addressing range anxiety but with high costs. Based on propulsion technology, the market is sub-segmented into battery electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles. BEVs are adopted on a large scale due to their environmental friendliness in comparison to the other two, and with recent developments in technologies and infrastructure facilities for improved driving ranges as well as cost reduction, they account for their major market share among vehicle divisions by propulsion types. The market is segmented into passenger and commercial electric vehicles based on vehicle types. Because the Norwegian government has implemented numerous policies encouraging the use of electric vehicles, the majority of the population is focused on passenger-type electric vehicles. As for commercial electric vehicles, this segment is also expected to witness prominent growth by 2027. There has been a trend of using battery as a service (BaaS) and battery swapping technology as a result of overcoming the high cost of battery packs, which alone constitutes 35–40% of battery packs. Though the prices have reduced considerably from being more than 1200/kWh to becoming less than 200/kWh, they are still very high and a restraining factor for EV prices as the price parity has not been achieved yet between ICE vehicles and EVs. This technology saves users the time spent on recharging the batteries, thereby improving customer satisfaction and addressing one of the main reasons consumers refrain from opting for EVs. The model has two major advantages: consumers can save money on battery costs and they do not have to worry about battery depreciation. The recent outbreak of COVID-19 has led to global supply chain disruptions all over the world, which also affected the Norwegian market. As yet, it had no well-established domestic value chain established, but the efforts were underway. The demand for EVs saw a great surge over the past years, even during the COVID times, but as there were lock downs all over the world, an imbalance was created between demand and supply, but it was handled efficiently. Moreover, Norway has the availability of necessary raw materials like aluminum, nickel, cobalt, and manganese, which has led to its efficient working by manufacturing and assembling batteries required for EVs as it is one of the major providers of these materials to the entire European Union, so the supply of these batteries wasn’t stopped from countries from which it delivers necessary raw materials. The Norwegian government has a goal of having all new cars be BEVs by 2025. This has led to the following statistics in 2021: 65% of new car registrations in the country were all-electric battery electric vehicles (BEVs) and 28% were hybrids (22% plug-in hybrids, 6% non-plug hybrids), shows data from OFV. The Norwegian Government has decided to keep the incentives for zero-emission cars until the end of 2022. After 2022, the incentives will be revised and adjusted in parallel with the market's development.

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Kripa Shah

Senior Analyst

Considered in this report. • Geography: Norway • Historical year: 2016 • Base year: 2021 • Estimated year:2022 • Forecast year: 2027 Aspects covered in this report • Norway electric vehicle battery market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Five force models. • Top-profiled companies • Strategic recommendation By Battery type in the report • Lithium-ion battery • Lead-acid battery • Others (Solid-state battery, Sodium-ion battery, Nickel metal hydride battery)

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By Propulsion Type in the Report • Battery Electric Vehicle (BEVs) • Plug-in Hybrid Electric Vehicles (PHEVs) • Hybrid Electric Vehicles (HEVs) By the vehicle type in the report. • Passenger Vehicle type • Commercial Vehicle type The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in it. The secondary research consists of third-party sources such as press releases and annual reports of companies, analyzing government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, we have started making primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to electric vehicle battery industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.