by Battery materials refers to materials used in manufacturing batteries such as cathode materials, anode materials, electrolytes, and separators. Some key cathode materials used in lithium-ion batteries include lithium cobalt oxide, lithium iron phosphate, lithium nickel cobalt aluminum oxide, and lithium manganese oxide. Anodes materials include graphite and lithium titanate. Battery materials play a vital role in determining key battery performance parameters such as energy density, life cycle, and safety. Emerging technologies around solid-state and lithium-metal batteries are expanding the application scope of battery materials across various industries.
The Battery Materials Market is estimated to be valued at US$ 50.6 Bn 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 Dynamics:
The battery materials market is driven by rising demand for lithium-ion batteries from the automotive industry. Automotive manufacturers are focusing on developing electric vehicles to reduce emission levels from combustion engines. According to the International Energy Agency, the global stock of electric cars passed 5 million in 2018 and needs to rise more than 40 times to over 200 million by 2030 to achieve climate change goals. This rising demand for electric vehicles will subsequently boost the battery materials market. Additionally, supportive government policies around the world for electric vehicles adoption along with increasing investments by companies in giga-scale battery manufacturing facilities are positively impacting the market growth. However, volatility in raw material prices remains a challenge for battery materials manufacturers and high R&D costs associated with development of new materials can limit market expansion.
Segment Analysis
The battery materials market is dominated by the lithium-ion battery sub-segment. Lithium-ion batteries currently account for over 60% of the overall battery materials market share due to their high energy density and growing usage in consumer electronics and electric vehicles. The lithium manganese oxide and lithium cobalt oxide cathodes and graphite or lithium titanate anodes used in lithium-ion batteries contain the highest volume of materials compared to other battery types.
PEST Analysis
Political: Favorable government policies around the world to boost electric vehicles adoption including subsidies and tax rebates are driving battery material demand. Economic: Growing investments by automakers in electric vehicles to meet emission regulations will fuel consumption of battery materials over the forecast period. Social: Increasing environmental concerns and need for sustainable transport solutions are accelerating demand for lithium-ion batteries from consumers. Technological: Continued R&D to improve battery performance through enhanced chemistries and recycling will open new opportunities for battery material manufacturers.
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. The market size for 2023 is estimated to be US$ 50.6 Bn.
Regional analysis: Asia Pacific currently dominates the global battery materials market and is expected to maintain its pole position over the forecast period. This is attributed to the presence of major battery materials producers such as China, Japan, and South Korea in the region. China, in particular, accounts for over 50% of the global lithium-ion battery production.
Key players: 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 focused on capacity expansion and backward integration to gain higher control over the supply chain.
