Electric Vehicle Battery Formation and Testing Market Size

The global electric vehicle battery formation and testing market size was valued at USD 1.9 billion in 2023 and is projected to grow at a CAGR of over 17.6% between 2024 and 2032. Innovations in battery technologies, such as solid-state and advanced lithium-ion batteries, are advancing the market. These batteries offer higher energy density, safety, and performance but require specialized testing and formation systems to ensure reliability and durability. The demand for accurate and comprehensive testing methods has led to investments in cutting-edge equipment and processes. Companies are increasingly adopting AI, machine learning, and automation to streamline testing, boosting demand for advanced solutions.

For instance, in August 2024, IPTE announced a multi-million-dollar contract with Volkswagen. This project enhances IPTE's position in the automotive sector by developing an advanced test solution for electric vehicle (EV) battery packs. As EVs gain global traction, this initiative addresses the rising demand for reliable and efficient testing methodologies.

Battery safety is crucial in the EV market, highlighted by numerous high-profile battery failures and fires. This has increased the need for comprehensive testing to meet stringent safety standards. Testing during the formation phase helps detect early defects that could lead to operational failures. As electric vehicle batteries store large amounts of energy, faulty batteries pose significant risks, necessitating advanced testing for thermal management, overcharging, and shock resistance. Manufacturers prioritize safety to avoid recalls and ensure consumer confidence, driving demand for testing solutions.