The global battery materials market is witnessing significant demand in recent times owing to the increasing usage of battery-powered devices for numerous applications across industries. Lithium-ion batteries are highly preferred for applications ranging from consumer electronics to electric vehicles due to their high energy density, lightweight properties, and longer lifespan. The lithium-ion battery system consists of cathode materials, anode materials, electrolytes, and separator materials that all have their importance in enhancing the overall performance of the batteries. Cathode materials such as lithium cobalt oxide, lithium nickel manganese cobalt oxide, and lithium iron phosphate are extensively used in consumer electronics whereas lithium nickel cobalt aluminum oxide and lithium manganese oxide find applications in electric vehicles and energy storage systems. The battery materials aid in improving the power output, lifespan, and safety aspects of the batteries.
The global 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 key trends:
One of the primary trends contributing to the growth of the battery materials industry is the rising adoption of electric vehicles (EVs) globally owing to stringent emission norms and government incentives. The EV market is expected to boom in the coming years as major automakers are actively investing in the EV sector. This will subsequently escalate the demand for lithium iron phosphate, lithium nickel manganese cobalt oxide, and lithium nickel cobalt aluminum oxide that are extensively used as cathode materials for EV batteries. Furthermore, investment in large-scale energy storage projects to integrate renewable energy is supplementing the industry expansion. Governments worldwide are establishing strategic policies to reduce reliance on fossil fuel-based power generation and introduce sustainable energy solutions like battery storage systems. These initiatives will propel the battery materials demand through 2030.
Threat of new entrants: The threat from new entrants is moderate as the battery materials market is capital intensive with high R&D requirements.
Bargaining power of buyers: The bargaining power of buyers is high as the battery materials are commodities and buyers can easily switch between suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials dependence from suppliers is high and supplier switching costs are also high.
Threat of new substitutes: The threat from new substitutes is moderate as continuous R&D is bringing newer battery chemistries and materials with better performance.
Competitive rivalry: The competitive rivalry in the industry is high due to presence of numerous global players competing on pricing and product innovation.
The global battery materials market is expected to witness high growth. Rapid growth in electric vehicles and energy storage systems is driving the demand for battery materials such as cathode, anode, electrolyte and separator materials. The global 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.
Asia Pacific currently dominates the global battery materials market owing to presence of major battery and electric vehicle manufacturers in countries such as China, South Korea and Japan. Countries in this region are also spearheading huge investments and subsidies for EVs and energy storage infrastructure development.
Key players operating in the battery materials market include Albemarle, Umicore, Johnson Matthey and Asahi Kasei. Albemarle is one of the leading producers of lithium compounds for lithium-ion batteries. It is investing heavily in increasing lithium production from its sites in Australia and Chile. Umicore focuses on materials and recycling for batteries and offers a wide range of cathode materials for lithium-ion batteries. Johnson Matthey is a leading supplier of materials for batteries such as lithium iron phosphate, nickel cobalt aluminum oxide and layered nickel cobalt manganese oxide based cathode materials. Asahi Kasei produces separator materials and offers polyolefin and dry process membranes as separators.