by The global Battery Materials Market is estimated to be valued at US$ 53.64 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The battery materials market comprises raw and processed materials used in manufacturing batteries such as cathodes, anodes, electrolytes, and separators. Key materials used in manufacturing battery include lithium, cobalt, manganese, graphite, nickel, and copper. Lithium-ion batteries dominate the global battery market due to their high energy density and longer lifespan. These batteries find key applications in consumer electronics, electric vehicles, energy storage systems, and industrial equipment. Some key cathode materials used in lithium-ion batteries include lithium cobalt oxide, lithium manganese oxide, lithium nickel manganese cobalt oxide, and lithium iron phosphate. Graphite and silicon are some of the commonly used anode materials.
Market key trends:
One of the key trends in the battery materials market is increasing production of electric vehicles. Stringent emission regulations and supportive government policies are propelling the adoption of electric vehicles globally. As electric vehicles use lithium-ion batteries, the rapid growth of the EV industry is creating robust demand for battery materials such as lithium, cobalt, nickel, manganese, and graphite. For instance, according to the International Energy Agency, the global electric car stock reached 7.2 million in 2017 and is projected to reach 125–220 million by 2030. This burgeoning EV adoption will significantly escalate the demand for battery materials over the upcoming years.
Porter’s Analysis
Threat of new entrants: The battery materials market requires high investment in R&D and manufacturing facilities to produce materials. This creates significant entry barriers for new players.
Bargaining power of buyers: The presence of numerous battery manufacturers gives buyers high bargaining power in the market. Buyers can negotiate lower prices by sourcing materials from multiple suppliers.
Bargaining power of suppliers: Major players such as Albemarle and Ganfeng Lithium dominate the supply of battery materials. This gives them significant bargaining power over battery manufacturers.
Threat of new substitutes: Emerging battery technologies for EVs such as solid-state batteries pose a threat to existing lithium-ion batteries. However, their commercial viability remains unclear.
Competitive rivalry: The battery materials market is highly competitive due to the presence of numerous global players. Intense competition keeps pricing pressure on players.
Key Takeaways
The Global Battery Materials Market Size is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing demand for lithium-ion batteries from the automotive industry for electric vehicles. The automotive segment accounts for over 40% share of the global lithium-ion battery demand.
Regionally, Asia Pacific dominates the global battery materials market and is expected to grow at the fastest rate due to the presence of major battery materials producers such as Ganfeng Lithium and Tianqi Lithium in China. China dominates the raw materials and battery supply chains. Europe and North America are also lucrative markets for battery materials due to flourishing EV markets in these regions.
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. Major players are investing heavily in scaling up their lithium and cathode production capacities to capture the growing demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
