The global market for battery materials is expected to expand at a CAGR of 16.3% during the forecast period of 2023 to 2030. The market for battery materials is expected to experience significant expansion in the coming years as a result of the rising demand from a variety of applications, including electric vehicles (EVs), portable devices, electronics products, and industrial settings. Opportunities may be found in a variety of industries, including consumer electronics, industrial manufacturing, and transportation, which all point to a bright future for the market for battery materials. The increasing popularity of electric vehicles, the rising demand for portable gadgets, and the expanding requirement for energy storage devices are the primary factors propelling the growth of this market.
A combination of components such as manganese (cathode), potassium, and zinc accounts for around 60% of the battery's total composition (anode). Sources of nickel-hydrogen, lithium-ion, and nickel-cadmium can be used to produce secondary batteries, which include a rechargeable design. Lithium-ion batteries have a high energy density, which has led to their widespread adoption. These batteries are used extensively in a variety of applications, including those in the automotive, industrial, and consumer electronics industries. The surge in demand for cathode battery materials can be attributed to the increased compatibility and dependability of Li-ion batteries. The size of the market will be driven by the increasing demand from the automotive industry for a variety of battery types, including lithium-ion and lead-acid batteries, among others.
The consistent demand for lead-acid batteries can be attributed to the widespread usage of lead-acid batteries as a power supply for automobiles, which has led to their relatively low cost and high availability. As a direct result of this, the quantity of spent lead-acid batteries has reached new heights and the amount of pollution that these batteries cause has also significantly increased. The recycling and trash disposal of lead-acid batteries has become a major concern and is the focus of a significant amount of public attention due to the fact that lead is detrimental to both the environment and humans. Recovering lead and compounds containing lead from spent lead-acid batteries has been the subject of recent research and development in a number of different areas. At this time, scientific breakthroughs have resulted in the creation of lead-acid batteries that are made up of more than 80% recycled lead battery materials. This has enabled lead-acid batteries to become the energy storage source with the smallest ecological imprint.
Clean Energy and Government Subsidies Are the Primary Motivators
Every nation is looking for new, clean sources of energy in order to eliminate its carbon footprints. The sophisticated battery technology contributes to the successful completion of the emission standards. Electric vehicles are getting a boost from governments all around the world in the form of subsidies, new policies, and stricter regulations on carbon emissions. Demand for electric vehicles across the globe has been on the rise over the past few years, with China taking the lead in the market for EVs. The electric vehicle market is primarily driven by China, which in 2021 sold 3.3 million more automobiles than the rest of the world did 2020.
Boosting The Use of Material Derived from Recycled Lithium-Ion Batteries to Encourage Market Growth
At the moment, one of the most important market trends involves the growing interest in using recycled materials for Li-ion batteries. For example, Fortum, a provider of clean energy solutions, recycles more than 80% of the Li-ion materials that it uses. As a result, it has transformed the battery value chain across a variety of industrial and electric car applications. Recovering nickel, cobalt, and manganese from used batteries for subsequent usage and the production of new batteries is made possible by the company's industrial-scale and low-CO2 processing methods. The hydrometallurgical recycling process entails a chemical precipitation procedure, which enables the recovery of rare minerals and the subsequent transportation to battery manufacturers for reuse in the creation of new batteries. This approach is referred to as "recycling." As a result, in the years to come, it is anticipated that the market will be driven by the increased emphasis placed on the recycling process.
Increased Focus on Lead Acid Batteries Management Is Expected to Fuel Market Expansion
More than 60% of the battery's overall quality can be attributed to lead, which is the principal raw material used in lead-acid batteries. The lead-acid battery supply chain poses a significant threat to lead contamination because lead is a heavy metal. Ineffective management can result in the contamination of the environment, which poses a threat to human health.
A Rise in Consumer Interest in Electric Vehicles Is Expected to Stimulate Market Expansion
Demand for electric vehicles is increasing all over the world as a direct result of the rapid evolution that is occurring alongside the ongoing innovations in the automotive sector. The rising sensitivity of various government organisations towards a cleaner and greener environment has contributed to an increase in the demand for zero-emission electric vehicles. Favourable government norms in terms of subsidies, tax rebates, and new car registration are a few examples of these favourable norms. It is probable that the growing desire for a decrease in carbon emissions, as well as the deployment of rapid and advanced charging stations, will increase sales of electric vehicles, which will favour product demand. In addition to this, the increasing popularity of electric buses, particularly in India and China, has been a significant factor in the expansion of the commercial electric sector.
Demand For Consumer Electronics Is Expected to Grow, Which Will Help Drive Market Expansion
The rising demand for electronic products like computers, televisions, mobile phones, and other devices is largely responsible for the current high output levels in the electronics industry. The International Business Electronics Fair (IBEF) estimates that the global market for consumer electronics would be worth 426.1 billion USD by the year 2020. There is a good chance that the market for consumer electronics will be driven by developments in technology, as well as by the rapid growth of the gaming industry. Growth in the market is projected to be driven by the rising demand for batteries in consumer electronics such as smartphones, laptops, smart electronic wearables, digital cameras, and tablets.
Insufficient Capacity of The Charging Infrastructure Limiting the Market Growth
The majority of electric vehicles make use of lithium-ion batteries, and the accessibility of charging infrastructure is one of the most important factors in determining the long-term viability of the EV business. Because there is not enough infrastructure for EV charging, electric vehicles can only be used in a constrained region at this time. A number of nations plan to expand their charging infrastructure in the near future.
The lack of proper charging infrastructure is projected to cause a delay in the introduction of electric vehicles, which in turn is anticipated to impede the expansion of the industry as a whole. The manufacturers of automobiles have stated that there are no current plans to stop producing combustion engines in India. The business also indicated that it will be difficult to launch passenger electric vehicles in the Indian market unless there is a robust charging infrastructure in place. This information was provided in reference to the Indian market. Because of the high cost involved and the relatively low demand for electric vehicles, well-known manufacturers and power providers are not investing in the development of charging infrastructure. This, in turn, is hindering the expansion of the whole industry.
Issues Pertaining to Regulations, As Well As Concerns About the Safety of Lead-Acid Battery Materials
The lead-acid battery relies heavily on the lead as its primary electrolyte. Lead is a poisonous substance that, when inhaled or ingested, can give rise to a variety of health problems, including harm to the nervous system, retardation in mental and physical development, difficulties focusing and learning, and so on. Using such a substance calls for specialised knowledge, appropriate safety measures, and extensive training.
Opportunity Presented by The Use of Batteries in Devices That Store Energy
Batteries such as lead-acid and lithium-ion are utilised in the production of energy storage devices. These batteries are intended to provide a high level of performance and power output across a variety of different settings and contexts. Datacentres demand stable power supplies, and as a result, they make use of uninterrupted power supplies (UPS) to supply the load with electricity. In addition to their usage in the generation of renewable energy, energy storage devices are also utilised in hybrid vehicle systems.
Lithium-Ion Segment Dominated the Market in 2021, and to Lead the Growth During the Forecast Period
Because lithium is the metal that is used in the manufacturing of batteries at a higher rate than any other, the lithium-ion market category held the greatest proportion of the battery materials market in 2021. This segment is also predicted to be the segment with the fastest growth during the projection period, rising at a compound annual growth rate of 6% during the forecast period. As a result of the growing demand for electric vehicles over the course of the projection period, it is anticipated that the lithium-ion segment will emerge as the most lucrative submarket. Because of the tint memory effect that it possesses, the fact that it has a low rate of self-discharge, and a high energy density, it is utilised in portable electronic devices. It finds use in a variety of fields, including consumer electronics, the automobile industry, industrial settings, and others. The vast majority of automobile manufacturers are concentrating their efforts on the production of electric vehicles as a response to the fact that government organisations in a number of countries have begun to implement programmes aimed at preserving the natural environment and reducing carbon emissions. The growing demand for lead-acid batteries as a result of their qualities such as reliability, the convenience of purchase, tolerance to abuse, tolerance to overcharging, and the ability to produce high currents, amongst other attributes, is what drives the demand for such battery types internationally.
During the period covered by this forecast, the lead-acid segment is anticipated to generate a substantial amount of market revenue. The growth of the market is expected to be driven primarily by the expansion of automotive manufacturing hubs in Germany, the United Kingdom, Brazil, the United States of America, China, India, and Japan. The cathode, anode, separator, and electrolyte make up the components that make up lead-acid batteries. The overall market is expected to grow as a result of high levels of discretionary income in China and India, as well as increases in the number of passenger cars sold overall. Batteries made of lead are environmentally friendly because they can be recycled, and according to the Battery Council International (BCI), 99% of all lead batteries ever produced have been recycled.
Electronics Segmented Topped the Application Market
At a CAGR of 5.8%, the electronics sector commanded the highest revenue share of the battery materials market in 2021. It is anticipated that the growing use of lithium-ion batteries in consumer electronics will be a primary factor in the expansion of the total market. Industry demand is expected to increase as a result of the growing need for intelligent electronic gadgets, which is caused by an increase in population as well as a parity in purchasing power, as well as a shift in lifestyle preference. In addition, governments all over the world are placing a greater emphasis on digitization, and encouraging customers to make effective use of the various electronic gadgets available to them is an essential component for the expansion of existing markets. The requirement and demand for battery power for wireless devices are expanding at an exponential rate, which has presented battery developers with substantial market potential.
However, the automobile industry category includes the use of batteries in carrying out a variety of electric duties within a vehicle in addition to electric automobiles, and as a result, it is predicted to develop at a higher pace throughout the projection period. As a result of the rapidly growing demand for electric vehicles around the world, this market category is also expected to grow at the highest CAGR of 6.2%.
The Cathode Material Dominated the Market in 2021
In 2021, cathode material held the majority share of the market, and it is anticipated that the trend will continue over the forecast period. Both the anode and the cathode in a lead-acid battery are composed of lead, however, the anode is lead metal while the cathode is lead dioxide. The efficiency of lead-acid batteries varies based on factors such as temperature and duty cycle, which are typically about 75% and 85% for DC-to-DC cycling. However, this range is not set in stone.
APAC Remains as the Global Leader
The Asia-Pacific region accounted for the biggest share of the market in the year 2020 and was also the region with the highest rate of growth. During the period covered by this prediction, China will have the most valuable share of the Asia-pacific market for battery materials by country. The Asia Pacific region is seen as the most promising region during the forecast period. The demand for battery materials in the region is being driven by the persistent growth in the production of goods both for domestic use and for export. these goods can be sold either domestically or internationally. China is an economic powerhouse, and there is a rising demand for materials used in batteries there. Around 3 million electric vehicles are sold in China in 2021, and the market is doing very well in the first three months of 2023. During the time period covered by this estimate, the demand for electric vehicles (EVs) in China is anticipated to drive growth in the market for battery materials.
It is anticipated that the market in North America would experience significant growth as a result of the swift adoption of electric vehicles and the rising sales of consumer electronics in this region. The government of the United States is actively trying to entice investors to get involved in the renewable energy and electric vehicle industries. This is leading to an increase in the demand for battery-based energy storage systems, particularly for lithium-ion batteries, which will primarily facilitate growth in the region through the year 2030.
It is anticipated that there would be a sizable expansion in the market in Europe throughout the period under consideration. Lucrative expansion opportunities in the global market for battery materials may emerge as a result of Germany's expanding electronic and automotive industries.
R&D Remains the Key Strategy to Enhance Market Share
The market is highly competitive as a result of the presence of important players such as NICHIA Corporation, NEI Corporation, TCI Chemicals, Umicore, BASF SE, Asahi Kasei, and Hitachi Chemical. The majority of manufacturing companies, battery manufacturers, and various research institutions are investing heavily in the technological advancements of these batteries, which will create batteries with a long-life cycle, high power density, environmental friendliness, high performance, and low cost. These batteries will also be able to be recharged multiple times before needing to be replaced. For example, in February 2020, Dr. Hun-Gi Jung and his research team at the Center for Energy Storage Research of the Korea Institute of Science and Technology developed silicon anode materials. These materials will enable rapid charging up to 80% capacity in five minutes and will increase the battery capacity. When these batteries are applied to electric vehicles, it is possible that the driving range will be increased by a factor of two. Other dominant players in this market include Albemarle, China Molybdenum Co. Ltd., Gan feng Lithium Co. Ltd., Glencore PLC, Livent Corporation, Norlisk Nickel, Sheritt International Corporation, SQM, Targray Technology International Inc., Teck Resources, Tianqi Lithium, and Vale S.A.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Battery Materials market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Battery
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End use Industry
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Material
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
