The battery materials market is expected to see substantial growth USD 62 billion in the coming years by registering a CAGR of 8.75% in the forecast 2030
The battery materials market is expected to see substantial growth USD 62 billion in the coming years by registering a CAGR of 8.75% in the forecast 2030.
Some of the primary drivers currently driving the global battery materials market are the growing electric vehicle market, the increased use of consumer electronics like smartphones and laptops, and collaborative development between miners and battery makers. Lithium-ion batteries are widely used in the automotive, industrial, and consumer electronics industries. The need for cathode battery materials has surged due to Li-ion batteries. The battery materials market will grow as demand for various batteries and battery materials grows.
Environmental concerns over metal mining are a big concern in the battery materials business, as this could stymie the acquisition of additional mine sites. The battery materials market is being driven by heavy expenditures in automotive, electronics, and ESS worldwide, particularly in APAC. Furthermore, automotive firms' government assistance, a solid manufacturing base, and increased expenditures in electric vehicles are propelling the battery materials market globally. In this market, there is currently a demand for low-cost batteries; producers choose cost-effective and high-performing materials.
The covid-19 pandemic, which started in China, is now spread all over the countries. To fight covid-19, the government is taking safety measures. The imposition of lockdown and social distancing guidelines is affecting the supply of products in all businesses. It also has a significant impact on the supply chain in the battery materials market. The energy sector is facing difficulty in production due to a shortage of labor, due to which the shipping process delays, therefore the delay in the projects, research, and development. A huge decline can be seen in the product sales and production rate of batteries. Export-import restrictions lead to a lack of availability of materials for the battery. The major manufacturers of battery materials in China announced that production delays. In many industries, the production works are at a halt. Due to the production difficulties amidst covid-19, the battery materials market trends are decreasing. The key players are trying to increase the battery materials market demand by taking the necessary steps.
The major regions in the battery materials market are:
Rapid development in the automotive sector will propel the demand for electric vehicles across the globe. As a result, increasing demand for electric vehicles will drive the battery materials market size. According to the investment bank UBS, By 2025, 20% of all new cars sold across the world will be electric. The demand for electric vehicles due to zero-emission has also increased. The government rules regarding tax and subsidies, a registration on electric vehicles is favoring the battery materials market. The demand for electric vehicles will rise more to reduce carbon emission and fast-charging stations, and it will have a positive impact on the battery materials market. Additionally, increasing demand for consumer electronics will boost the growth of the battery materials market. The increased production of electronics products such as computers, laptops, Mobiles, TV and other devices will propel the market. The advancement of technology will also play a crucial role in increasing the demand of the battery materials market.
Currently, the focus is increasing on the adoption of recycled LI-ION batteries, and it will bring great opportunities for the market. For example, Fortum is a clear source of energy provider, and it recycles over 80% of Li-ion materials and improves the battery value across industries and vehicle applications. The recycling method involves a chemical preparation method that requires rare materials, and therefore, the focus on the recycling process will bring opportunities for the battery materials market. Companies are also investing in the development of efficient battery technologies that are likely to generate opportunities for the battery materials market.
Poor infrastructure that doesn’t support charging may delay the launch of electric vehicles. And it will hamper the battery materials market growth. The electric vehicles companies can’t launch vehicles unless there is proper charging infrastructure, as it will be difficult for the customer to charge the vehicle. The major key players are trying to come up with solutions to increase the market growth.
The underdeveloped regions are not used to advanced technology and electric vehicles; as a result, it will be a big challenge for the battery materials market. The key players are trying their best to overcome the challenges and increase the demand for the battery materials market.
There are many factors that are boosting the demand of the battery materials market. As a result, the battery materials market will grow at a healthy CAGR rate of 8.46% during the forecast period.
On the basis of type, the battery materials market is segmented into cathode, anode, separator, electrolyte, and others. The cathode is further divided into lithium Cobalt oxide, lithium manganese oxide, lithium iron phosphate, lithium nickel cobalt aluminum oxide, and lithium nickel manganese oxide. Anode is again segmented into natural graphite, artificial graphite, and others. Cathode dominated the market in 2019 and had the highest battery materials market share, and it is expected to hold the highest share of the market in the forecast period.
On the basis of battery type, the battery materials market is segmented into Li-ion, lead-acid, nickel-metal hydride, Ni-cd and others. The Li-ion segment is expected to dominate the segment due to the increasing demand for Li-ion for electric vehicles. It is also used on electronic devices because it has a tint memory effect, high energy density, and low self-discharge. It has wide application in automotive, electronics, Industries, and others. The rising demand for lead-acid batteries is due to their properties such as reliability, high tolerance to abuse, ease of purchase, tolerance to overcharging, and ability to produce high currents. The lead-acid batteries will see substantial growth during the forecast period.
On the basis of application, the battery materials market is divided into portable devices, power storages, electronic items, automotive, and others. The increasing adoption of batteries in electronic devices will drive the growth of the overall battery materials market. This is due to the new products, growing population, the rising purchasing power of people, and change in lifestyle. Also, the government across the world focusing on the proper utilization of electronic devices. Automotive is responsible for this highest market share.
The major regions in the battery materials market are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. The Asia Pacific was responsible for the highest battery materials market account to the battery materials market analysis. This was due to the growing demand if the electronics industry in this region. Apart from that improved economic conditions, high incomes and low electronics cost is driving the market in this region. Asia Pacific will register the highest CAGR in the forecast period as well. Europe is also showing rapid growth due to the rising automotive sector in this region. The North American region is expected to register a great CAGR during the forecast period due to the presence of advanced consumer technologies. The automotive sector in the US will also play a major role in driving the battery materials market demand in this region. The market in Latin America will see positive growth due to Industrialization. The market in the Middle East and Africa will show moderate growth due to economic development
The battery materials market report is based on the quantitative and qualitative analysis of the market. This Report highlights the battery materials market outlook on market overview, covid-19 analysis market Dynamics, and analysis of the market. Furthermore, it discusses the regional analysis, competitive landscape, and recent developments.Recent Development
Feb 2022 Northvolt, a battery manufacturer, has announced plans to develop its third production facility in Sweden. Northvolt has previously formed a deal with Volvo Cars to build a battery facility in Gothenburg, Sweden. The new unit will be built at the Kvarnsveden paper mill in Borlange. Last year, it was shut down by Stora Enso Oyj. This will be the company's third manufacturing facility, designed to address the expanding demand for electric vehicles. Much of the current facilities and infrastructure will be reused and refurbished, according to Northvolt. The companies have signed a statement of intent to proceed with the deal, with a definitive agreement expected in the coming months.
Feb 2022 This week, the US announced a "significant investment in a local production of essential minerals and commodities," including measures to enhance lithium and other battery-related supply chains. The Department of Energy (DoE) recently announced a loan-based funding commitment of $3 billion for upstream battery supply chain initiatives.
|Market Size||2030: USD 62 Billion|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Battery Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||3M (US), BASF SE (Germany), Entek (UK), Ecopro (South Korea), Hitachi Chemical Co. Ltd (Japan), DowDuPont (US), Celgard, LLC (US), Mitsubishi Chemical Corporation (Japan), Solvay (Belgium), and Nippon Denko Co., Ltd (Japan).|
|Key Market Opportunities||
|Key Market Drivers||
Battery materials market would grow with a CAGR of 8.75% during the forecast period of 2022 to 2030.
Stringent safety measures and lack of infrastructure can hold back the battery materials market growth.
The Asia Pacific market has the scope to register the maximum market growth.
End user industries like automotive, portable devices, power storages, electronics items, are expected to trigger maximum growth for the battery materials market.
Players like BASF SE (Germany), 3M (US), Hitachi Chemical Co. Ltd (Japan), DowDuPont (US), Entek (UK), Solvay (Belgium), Ecopro (South Korea), Mitsubishi Chemical Corporation (Japan), Celgard, LLC (US), and Nippon Denko Co., Ltd (Japan) are slated to trigger growth for the battery materials market.