BATTERY MATERIALS MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global battery materials market size was valued at US$ 50.6 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6% from 2023 to 2030. The global battery materials market is witnessing growth on the account of growing consumer disposable income and the need for advanced electronic devices, such as smartphones and laptops that require more battery power to extend operating life. Additionally, the use of electric vehicles is rising, as governments are taking initiatives to reduce carbon emissions and promote a clean environment. These factors are projected to drive the battery materials market growth over the forecast period.

Global Battery Materials Market: Regional Insights

Based on geography, the global battery materials market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Geographically, Asia Pacific Battery Materials Market is expected to dominate the global market over the forecast period due to the region’s large population base, strict government laws governing automobile emissions, and high consumer disposable income. Moreover, the market is also supported by the presence of a large number of battery manufacturers and EV original equipment manufacturers.

Europe is expected to witness fastest growth over the forecast period owing to the increasing electric mobility in major European countries. For instance, countries such as Italy and Germany have incentivized the purchase of EVs, thereby increasing the consumption of battery materials.

Figure 1. Global Battery Material Market, By Region, 2023

Global Battery Materials Market Drivers:

Growing market of electric vehicle to propel battery materials market growth

Implementation of strict government regulations toward vehicles emission and environmental pollution is driving growth of the electric vehicle market. Worldwide, governments are taking initiatives in this decarbonization by providing incentives in the form of tax benefits to boost EV sales. For instance, electric vehicles in Austria are exempt from fuel consumption/pollution tax, ownership tax, and company car tax. All such factors are propelling demand for battery, thereby fuelling battery materials market growth.

Increasing demand for consumer electronic products to fuel market growth

The global consumer electronics market is expected to grow at a significant rate over the forecast period, due to ongoing technological developments in electronics and semiconductor products, creating demand for electronics among the masses. Moreover, increasing internet penetration and increasing population are other factor augmenting consumer electronic products demand.

Global Battery Materials Market Opportunities:

Growing investment on electrification of remote & rural area is expected to serve major growth opportunities. The need for electricity is expected to rise during the forecast period, mostly across China, Vietnam, India, and Brazil. The expected spike is attributed to rapid industrialization and urbanization. The emerging economies such as India, China, and Brazil are involved in the investment on electrification of remote and rural areas. This is projected to augment the demand for batteries for energy storage in these countries.

Increasing focus on improving the supply chain of battery materials is expected to offer significant market growth opportunities. For instance, in August 2019, a joint venture company named Khanij Bidesh India Ltd. (KABIL) was made with three major companies, National Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL) and Mineral Exploration Company Ltd. (MECL), in India. . It was formed to create a new supply chain of battery materials for the Indian battery industry. 

Global Battery Materials Market Trends:

Increasing new product launch is a recent trend

Key players are introducing new product in order to meet the growing demand among end users. For instance, in July 2022, EASPRING launched 6 new advanced battery material products, including three new cathode materials of ultra-high-Ni cobalt free, new mangane-rich cathode, and lithium ferromangan-phosphate, as well as two new system materials of dual-phase composite solid lithium cathode and solid electrolyte.

Increasing EV funding

Government is highly active in the growth of the U.S. electric vehicle market. For instance, in April 2021, the U.S. Department of Energy announced new research funding on three EV charging related topics to boost EV adoption. First was a $10 Billion to develop new technologies and designs to significantly reduce the cost of electric vehicle supply equipment for DC Fast Charging that will be needed in large number to support high volumes of EVs.

Global Battery Materials Market Restraints:

Environmental concern associated with mining of batteries to hamper market growth

Growing battery waste and rising concern regarding its disposal are the key factors hindering growth of the market. Batteries are manufactured from materials such as nickel, lead, lithium, nickel metal hydride, cadmium, and mercury. These toxic chemicals and metals are need to be disposed and recycled properly as they are heavy toxic metals can pollute soil and water. Hence, improper disposal and recycling of battery materials is projected to hamper the market growth.

Risk of supply scarcity

According to the report from the UN Conference on Trade and Development, close to 50% of the cobalt reserves are in the Democratic Republic of Congo (DRC), 58% of lithium reserves are in Chile, and 80% of natural graphite are from the economies such as China, Brazil, and Turkey. The statistics shows a huge resource consolidation that act as a limitation in case of any political instability which could reduce the supply, hence, increasing the prices of raw material is expected to hamper the global battery materials market growth.

Figure 2. Global Battery Materials Market, By Battery Type, 2023

Global Battery Materials Market Segmentation:

The global battery materials market report is segmented into battery type, end use industry, and region

Based on battery type, the market is segmented into Lithium Ion, Lead Acid, and Others. Out of which, Lithium Ion is expected to dominate the global market over the forecast period. It is most popular type of battery used in mobile phones, digital camera, laptop, robots, electric vehicle, and power grid storage. Rapid growth of the electric vehicle industry is further creating demand for Li-ion batteries.

Lead Acid segment is also expected to witness significant growth in the near future and this is owing to the growing demand from marine, automotive, heavy duty vehicle, mining, railroad, telecommunications, emergency lighting, and other applications.

Based on end use industry, the market is segmented into Automobile Industry, Household Appliances, Electronics Industry, and Others. Out of which, Automobile Industry is expected to dominate the global market over the forecast period and this is attributed to the gradual shift from gasoline powered automotive to electric mobility due to the growing need to reduce carbon emissions

Household Appliances segment is also expected to witness significant growth in the near future and this is owing to the increasing consumer’s disposable income which is creating demand for household equipment such as bread maker, coffee maker, and others which are portable and battery operated

Global Battery Materials Market: Key Developments

In January 2021, Albemarle announced the expansion of its Lithium production facility in Silver Peak, Nevada by doubling the extraction of lithium from brines. The plan includes investing $30 Billion to $50 Billion to double the current production at the Nevada site by 2025, making full use of its brine water rights. The planned expansion will increase domestic production and help Albemarle to cater to various electric vehicle manufacturers.

In October 2019, Albemarle announced the completion of a 60/40 joint venture with Mineral Resources Limited, named MARBL Lithium Joint Venture. The JV gave Albemarle access to high-quality spodumene source, further diversifying Albemarle's lithium asset base.

In March 2018, Albemarle received approval from Chile's Economic Development Agency (CORFO) for an increase in the company's lithium quota to sustainably increase Albemarle's lithium production in Chile to as much as 145,000 metric tons of lithium carbonate equivalent (LCE) annually through 2043.

In April 2021, CMOC announced its strategic partnership with Contemporary Amperex Technology Co. Ltd. (CATL). As part of the deal, CATL made an equity investment in CMOC Kisanfu project through its subsidiary and joined CMOC in developing copper and cobalt mine in the Democratic Republic of Congo (DRC). The partnership enables CMOX to become a long-term cobalt supplier to CATL and increase its revenue.

In December 2020, Gan Feng announced the expansion of its plant for increasing the annual production of battery-grade lithium hydroxide to 50,000 tons, the total production of 81,000 tons. The new plan is aimed to increase Gan Feng’s capabilities in the Lithium supply chain is likely to be augmented by the future demand for battery materials

In December 2019, Gan Feng signed an agreement with BMW Group. Through this agreement, Gan Feng will supply lithium to the BMW Group for using as key raw material in the battery cells.

Global Battery Materials Market: Key Companies Insights

The global battery materials market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global 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.

*Definition: The battery materials are materials used to make batteries (primary and secondary) by manufacturers and other entities that create them.