by Battery materials are crucial components of various battery types including lead-acid batteries, lithium-ion batteries, and others. These materials store and deliver electrical energy through electrochemical redox reactions. The demand for high-performance, durable, and efficient battery materials is rising significantly owing to the increasing adoption of electric vehicles and energy storage systems worldwide. Lithium-ion batteries have emerged as a preferred power source for these applications due to their lightweight, high energy density, and extended lifespan.
The global Battery Materials Market is estimated to be valued at US$ 50.6 billion 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 key trends
Demand for Lithium-ion Batteries
The key trend propelling the growth of the battery materials market is the rising demand for lithium-ion batteries from the automotive industry. Lithium-ion batteries have higher energy density, longer lifespan, and better performance compared to lead-acid batteries. As a result, they are increasingly adopted in the electric vehicles to enhance driving range. According to the International Energy Agency (IEA), the global electric car stock surpassed 10 million in 2020 and is expected to grow significantly in the coming years. Expanding electric mobility has amplified the demand for lithium-ion batteries, thereby driving the need for battery materials such as cathode, anode, electrolyte, and separators. For example, as per the report by the Coherent Market Insights, the lithium market is projected to witness a CAGR of over 9% during the forecast period driven by its increasing use in lithium-ion batteries for electric vehicles.
SWOT Analysis
Strength: Battery materials such as lithium, nickel and cobalt offer high energy density which drives demand from electric vehicles and energy storage applications.
Weakness: Availability and supply of key raw materials like lithium, cobalt and nickel depends on a few geographies and may cause supply disruptions. Price volatility of raw materials can impact the battery materials market.
Opportunity: Rising sales of electric vehicles and proliferation of energy storage projects present an opportunity for battery materials manufacturers to expand into new applications and geographies.
Threats: Stringent environment regulations around mining activities may increase production costs. Development of alternatives to lithium-ion batteries can reduce dependence on battery materials in the long run.
Key Takeaways
The global battery materials market is expected to witness high growth over the forecast period supported by rising electric vehicle production and expansion of energy storage projects worldwide. The regional analysis indicates that Asia Pacific currently dominates the global battery materials market owing to strong presence of battery materials producers and electric vehicle manufacturing base in countries like China, Japan, and South Korea. Europe and North America are expected to experience substantial growth in demand for battery materials driven by favorable government policies promoting adoption of electric vehicles.
SWOT Analysis
Strength: Battery materials such as lithium, nickel and cobalt offer high energy density which drives demand from electric vehicles and energy storage applications.
Weakness: Availability and supply of key raw materials like lithium, cobalt and nickel depends on a few geographies and may cause supply disruptions. Price volatility of raw materials can impact the battery materials market.
Opportunity: Rising sales of electric vehicles and proliferation of energy storage projects present an opportunity for battery materials manufacturers to expand into new applications and geographies.
Threats: Stringent environment regulations around mining activities may increase production costs. Development of alternatives to lithium-ion batteries can reduce dependence on battery materials in the long run.
Key Takeaways
The global battery materials market is expected to witness high growth over the forecast period supported by rising electric vehicle production and expansion of energy storage projects worldwide. The global Battery Materials Market is estimated to be valued at US$ 50.6 billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023-2030.
The regional analysis indicates that Asia Pacific currently dominates the global battery materials market owing to strong presence of battery materials producers and electric vehicle manufacturing base in countries like China. Europe and North America are expected to experience substantial growth in demand for battery materials driven by favorable government policies promoting adoption of electric vehicles.
Key players operating in the battery materials market are Albemarle, FMC, and SQM. These players are expected to expand their production capacities and operations over the coming years to leverage opportunities in electric mobility and energy storage sectors.
