The battery materials market is estimated to be valued at US$ 53.64 Mn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Battery materials include cathodes, anodes, electrolytes and separators that are used in various battery technologies like lithium-ion batteries, lead-acid batteries, nickel-metal hydride batteries, and others. Cathode materials include lithium cobalt oxide, lithium iron phosphate, lithium manganese oxide, and lithium nickel manganese cobalt oxide. Anode materials consist of natural and synthetic graphite and lithium titanate. Electrolytes are the medium that allows the transfer of lithium ions between the anode and cathode. Electrolytes can be liquid, gel, or solid polymers. Separators are microporous membranes made of polypropylene or polyethylene.
Market Dynamics:
One of the key drivers for the battery materials market is the rising adoption of electric vehicles across the globe. Several governments are offering subsidy programs for electric vehicles to curb carbon emissions from transportation sector. This is significantly boosting the demand for lithium-ion batteries used in EVs, thereby propelling the need for battery materials like cathode, anode, electrolyte and separators. Another factor fueling the market growth is the increasing deployment of grid-scale energy storage systems by utility companies and commercial & industrial establishments to manage power supply and demand. Lithium-ion batteries are extensively utilized in grid energy storage due to their high energy density and long lifespan. This is positively impacting the consumption of battery materials globally.
Segment Analysis
The Global Battery Materials Market Size is dominated by the lithium-ion battery segment which accounts for over 60% share of the total market. Lithium-ion batteries are widely used in consumer electronics such as smartphones, laptops, power tools and electric vehicles due to their high energy density, low self-discharge and minimal memory effect. Within lithium-ion batteries, lithium cobalt oxide is the dominant cathode material owing to its high power density. However, lithium iron phosphate and lithium nickel manganese cobalt oxide materials are gaining traction due to better safety characteristics.
PEST Analysis
Political: The government of major economies are supporting the adoption of electric vehicles through subsidies and incentives to consumers for reducing oil imports and curbing emissions. This is positively impacting the demand for battery materials.
Economic: The demand for lithium-ion batteries from the consumer electronics and electric vehicles industry has been growing rapidly. This has created lucrative opportunities for battery material manufacturers leading to new investments in capacity expansions.
Social: Consumers are increasingly opting for eco-friendly electric vehicles and renewable energy storage systems driven by environmental sustainability concerns. This is fueling the social demand for advanced battery materials.
Technological: Companies are investing heavily in R&D to develop new cathode chemistries such as lithium-sulfur and solid-state batteries with higher energy density to increase the driving range of EVs. Some key players are also exploring alternatives to cobalt for improving safety.
Key Takeaways
The global Battery Materials Market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing demand for electric vehicles. The EV sector is expected grow significantly to account for over 30% of new vehicle sales by 2030 which will drive the battery materials market.
The Asia Pacific region is expected to continue dominating the battery materials market over the forecast period. China, South Korea, and Japan are major battery producers and consumers accounting for over 60% of lithium-ion battery production globally. The region is also a key manufacturer of cathode materials with China dominating Production.
Key players operating in the Battery Materials market are Albemarle, China Molybdenum Co. Ltd., Gan feng Lithium Co., Ltd., Glencore PLC, Livent Corporation, Norlisk Nickel, Sheritt International Corporation, SQM S.A., Targray Technology International Inc., Teck Resources, Tianqi Lithium, and Vale S.A. The major players are investing in capacity expansions as well as backward integration to gain a competitive advantage and ensure security of raw material supply for battery manufacturing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
