Latin America Electric Vehicle Battery Market Outlook, 2027

With increasing incentives and a growing network of charging stations, Latin America region wants to simulate greater electric vehicle demands and bring down the transport emissions. Latin America is still at an early stage of adopting the technology. Due to the advancements and improvements occurring in the battery technology, Latin American and Caribbean countries are gradually growing the number of passenger type or privately-owned vehicles on the streets. This trend is expected to increase as governments are focusing on cleaner transport. The transport sector is the largest resource of energy related emissions in Latin America. Car fleet of the region is responsible for 37% of emissions and rest is occurred by trucks or public transportation. Many cities in this region is dealing with unsafe levels of air pollution. Latin America region shows a critical window of opportunities in the process of electrifying transport sector. Latin America has one of the cleanest electricity matrices in the world with 60% installed capacity coming from renewable products and high global average. Car fleet for Latin America is estimated to reach 200 million by 2050. Electric mobility policy is the fastest moving factor in Latin America. Many countries have incentives for electric vehicles such as discounts on sales, environmental and import taxes, revenue-neutral ‘feebates’ that tax polluting cars and reward clean ones. Challenging factors for electric vehicle battery market growth includes upfront cost for developing countries, insufficient charging infrastructures and most of the government subsidies are still directed towards fossil fuels. To overcome these factors, Latin America region needs to have more developing electric mobility strategies.

According to the research report “Latin America Electric Vehicle Battery Market Outlook, 2027" published by Bonafide Research, the electric vehicle battery market is growing rapidly. Latin America Electric vehicle battery market is expected to grow with the CAGR of more than 23.50% by 2027. By the country, Latin America region is segmented into three major sections which are Brazil, Argentina and Columbia. Brazil is segmented to acquire major market share for Latin America region in forecast region. Brazil is considered to be the fastest growing country in terms of electric vehicle battery market in Latin America region. Brazil have one of Latin America’s cleanest energy power grids. One major factor affecting the growth of the EV batteries in Brazil is that government stalls in the existing policies related to the market. There is a lack of coordination between researchers, local governments and manufacturers. Brazil introduced two important policies for EV market including ‘Inova Energia’ and ‘Rota 2030’. Rather than this Brazil has the improved and advanced technology for EV battery market and participates with higher market share in Latin America region. From the expert review, Argentina shows slower growth rate with compared to Brazil. Three electric cars were manufactured in Argentina. They are Sero electric by Movi electric, Tito by Coradir and volt by volt motors. Colombia is the country that sells the most electric vehicles in Latin America. The country’s main goal is to reach 600,000 electric vehicles on Colombian roads by 2030.

The Covid-19 pandemic has increased the use of private travel and car sales in most Latin American cities because of fears of infection on public transportation. Changes occurring in transport use due to COVID-19 pandemic and recovery plans are an important attribute for governments in Latin America to increases the demand and transition to electric mobility. Transport is the major resource of the carbon emissions in Latin America which accounts for one-third of total emissions.
Latin America and the Caribbean has the opportunity, and the potential, to drastically reduce transport emissions and improve urban air quality with electric mobility based on a clean energy mix. 27 from total 33 countries in Latin America have primarily focused on transport as a central element in reaching the emission reduction targets. Urban public transport remains a priority in mobility plans in the region, which has the highest bus use per capita of any of the world’s regions. However, reduced ridership caused by the Covid-19 pandemic changed the use of some public transport. Electric mobility can be the engine of Latin America’s post-pandemic economic recovery.

In Mexico and Brazil there are millions of jobs related to vehicle manufacturing and assembly, so there is great potential to manufacture our own electric vehicles and charging facilities. Latin America’s automotive industry has been slow to transition to electric units, and most of the goods in the region are imported. Similarly, the availability of charging infrastructure is limited to imports. This is why a repurposing of the region’s industries could bring numerous opportunities.

Major Companies present in the market
Hyundai Motor Company, KIA Motors Corporation, BYD Auto, BMW Group, and Groupe Renault.

Considered in this report
• Geography: Global
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• Latin America electric vehicle battery market with its value and forecast along with its segments
• Country-wise electric vehicle battery market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Brazil
• Argentina
• Columbia

Types of batteries in the report
• Lithium-Ion battery
• Lead Acid battery
• Others (Nickel Metal Hybrid battery, Sodium Ion battery and Solid state)
By Propulsion Type in the report:
• Battery Electric Vehicle
• Plug-In Hybrid Electric Vehicle
• Hybrid Electric Vehicle
Type of Vehicle in the report:
• Passenger Vehicle
• Commercial Vehicle

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 listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to EV 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.

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Manmayi Raval

Research Consultant

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