Battery materials refers to cathode materials, anode materials, electrolytes, separators, current collectors and electrode active materials. These materials work together to allow batteries to store and release energy. Some key materials used in modern batteries include lithium, cobalt, graphite and various lithium metal oxides.
The global Battery Materials Market is estimated to be valued at US$ 50.6 Bn or 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 key trends:
One of the key trends in the battery materials market is the increasing demand for lithium-ion batteries due to growing sales of EVs. Various studies have projected that global EV sales will rise significantly in the coming years due to stringent emission norms and government incentives/subsidies for EVs. This is expected to drive the demand for lithium-ion battery materials such as lithium, cobalt, graphite and nickel. Manufacturers are investing heavily in developing low-cost and high-performance cathode and anode materials to manufacture advanced lithium-ion batteries to power EVs over longer distances on a single charge.
SWOT Analysis
- Strength: Battery materials have wide applications in energy storage technologies like consumer electronics, electric vehicles, etc. This wide range of applications will drive the demand for battery materials over the forecast period.
- Weakness: Fluctuations in raw material prices can increase the production cost of battery materials. This price volatility poses a major challenge.
- Opportunity: Increasing adoption of electric vehicles worldwide due to stringent emission norms provides opportunities for battery material manufacturers to cater to the growing EV market.
- Threats: Trade wars and geopolitical tensions can disrupt the supply chain of critical battery materials. Growing environmental concerns around mining and processing of some battery materials is also a threat.
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 adoption of electric vehicles. Stringent emission regulations aimed at curbing air pollution are driving the adoption of EVs globally which will boost the demand for battery materials.
Regional analysis: Asia Pacific is expected to dominate the global battery materials market owing to the presence of major battery material manufacturers as well as massive EV markets like China. Countries like China, Japan, and South Korea are leading battery material producers as well as biggest EV markets. This makes the APAC region an attractive market for battery materials. Europe is also emerging as a fast growing market due to increasing EV sales and presence of major automakers.
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. These players are focusing on capacity expansions and strategic partnerships to cater to the growing demand for battery materials globally.