The impact of cell standardization on niche markets for battery applications: an analysis of various cylindrical cell formats

Abstract

Achieving cost and emission reductions in lithium-ion battery production requires gigafactory-scale battery manufacturing that leverages economies of scale and reduces energy consumption. While demand outside the EV sector remains comparatively small, battery-powered devices are used by billions of people across various applications. This study investigates whether standardized cylindrical cell formats can aggregate demand across fragmented battery niche markets and thereby transfer economic and sustainability benefits from giga-scale production to these applications. In addition, hypothetical improvements in market accessibility through novel cylindrical cell formats are evaluated. Cylindrical cells are particularly suitable for this approach due to their broad applicability and established format standardization. The scenario analysis demonstrates that aggregating niche market demand can support economies of scale and reduce energy consumption during production, while novel cylindrical formats further increase market coverage. Thus, this work provides a novel assessment of how large-scale production benefits can be extended to fragmented yet important battery niche markets, thereby enabling more sustainable production.