Battery Materials Market Research 2030
The global battery materials market size was valued at $45.6 billion in 2020, and is projected to reach $80.5 billion by 2030, growing at a CAGR of 5.9% from 2021 to 2030.
Battery materials are the basic raw materials and compounds in the battery supply chain and mainly consists of metals such as Lithium, Cobalt, and Nickel among others. They are extracted from upstream mining operations that involve converting seawater brines or mineral ores into processed battery metals. The end products are battery packs that are used in various end-use industries such as automotive, consumer electronics, and energy storage devices. The most common battery currently used is the lithium-ion battery. It is extracted from brine or mineral ores such as spodumene and lepidolite. Apart from lithium, these batteries contain cobalt, nickel, and manganese to a certain extent.
The globally expanding electric vehicle market, increase in use of consumer electronics such as smartphones and laptops, and collaborative development between miners and battery manufacturers are some of the major drivers currently driving the global battery materials market. Across the globe, there is a surge in EV production and has significantly increased the demand for battery materials such as Lithium, Cobalt, and Nickel. In fact, there could be a shortage of these critical materials in the future due to this sudden rise in the battery production. The shift toward clean energy and rise in crude oil prices have boosted the global EV sales. In addition, favorable government policies and financial incentives in the form of grants or tax rebates increase EV sales. On the other hand, the demand for new consumer electronics will increase battery production in the long run. Electronic devices, as in the case of smartphones require more battery capacity to extend its operating life and cater to more advanced functions. The sales of new smartphones will touch 410 million units in India by 2025, according to Swedish multinational telecommunications company, Ericsson. The demand for batteries will increase against the backdrop of inexpensive access to internet data plans. Similarly, as income rises, the use of consumer electronics will increase, thus driving the battery materials market during the forecast period. To develop new battery technologies, major battery manufacturers collaborate with battery material suppliers to strengthen the supply of battery materials that are projected to face a shortage in the future. All such factors increase the upstream metal mining industry focusing on battery metals, thus boosting the global battery materials market growth.
Environmental concern related to mining of metals is a major concern in the battery materials market, by imposing strict guidelines on material sourcing, production processes, and disposal methods. Manufacturers must navigate complex regulations related to hazardous materials, recycling requirements, and emissions standards, which can increase operational costs and complicate compliance. In addition, public concern over the environmental impact of mining for raw materials, such as lithium and cobalt, drives the demand for more sustainable practices. These challenges may limit the availability of certain materials and slow innovation, ultimately affecting the overall supply chain and market expansion for battery materials across various industries.
The expansion of grid energy storage systems presents a significant opportunity for the battery materials market, driven by the increasing need for energy reliability and efficiency. As renewable energy sources such as solar and wind become more prevalent, the demand for effective storage solutions to balance supply and demand grows. Advanced battery materials, such as lithium-ion, sodium-ion, and flow batteries, are essential for these systems, enabling large-scale energy storage and enhanced grid stability. Additionally, government initiatives and investments in smart grid technologies are further propelling the adoption of energy storage systems, creating a robust market for innovative battery materials that support this transition to a more sustainable energy infrastructure.
The global battery materials market is segmented into battery type, application, and region.
On the basis of battery type, the global battery materials market is segmented into lithium ion, lead acid, and others. The end use industries of battery materials include automobile industry, household appliances, electronics industry, and other.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by LAMEA and Europe.
The major companies profiled in this report include Albemarle, China Molybdenum Co. Ltd., Gan feng Lithium Co. Ltd., Glencore PLC, Livent Corporation, Norlisk Nickel, Sheritt International Corporation, SQM, Targray Technology International Inc., Teck Resources, Tianqi Lithium, and Vale S.A.
Battery Materials market, by battery type
The lithium-ion segment accounted for the largest battery materials market share in 2020, as lithium is the most abundantly used metal in battery production. This segment is also projected to be the fastest growing segment during the forecast period, growing at a CAGR of 6.1%.
By Battery Type
Lithium Ion Battery Materials is projected as the most lucrative segment.
Battery Materials market, by Application
The electronics segment held the largest battery materials market revenue share in 2020 at a CAGR of 5.8%. However, the automobile industry segment consists of the use of batteries in carrying out various electric functions in a vehicle as well as electric vehicles and thus is projected to grow at higher pace during forecast period. The segment will also grow at the fastest CAGR of 6.2%, owing to the rapidly expanding EV market across the globe.
By Application
Automobile Industry are projected as the most lucrative segment.
Battery Materials market, by region
Asia-Pacific accounted for the largest share of the market in 2020 as well as the fastest growing region, owing to the presence of abundant battery metal reserves in China, India, Australia, and other Asia-Pacific countries.
By Region
Asia-Pacific is projected as the most lucrative market.
Historical Trends in The Battery Materials Market
- Early Battery Development: In the late 19th and early 20th centuries, lead-acid batteries were the predominant technology, primarily used in automotive applications and backup power systems.
- Rise of Nickel-Cadmium (NiCd): In the 1960s and 1970s, NiCd batteries gained popularity due to their rechargeable capabilities and use in portable electronics. However, environmental concerns regarding cadmium began to emerge.
- Introduction of Nickel-Metal Hydride (NiMH): The 1980s saw the rise of NiMH batteries, particularly in hybrid vehicles and consumer electronics, as they offered higher energy densities and were less toxic than NiCd.
- Advancements in Lithium-ion Technology: The commercial introduction of lithium-ion batteries in the early 1990s revolutionized the market, enabling lightweight, high-capacity solutions for mobile devices, laptops, and eventually electric vehicles (EVs).
- Growing Demand for Lithium: The increasing demand for lithium-ion batteries, especially in the 2000s, led to significant investments in lithium extraction and processing technologies, with a focus on securing reliable sources of lithium and other key materials such as cobalt and nickel.
- Focus on Sustainability: In recent years, there has been a growing emphasis on sustainable battery materials, driven by environmental concerns and regulatory pressures. This trend has led to research into alternative chemistries, such as sodium-ion and solid-state batteries.
Key benefits for stakeholders
- Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- It outlines the current battery materials market trends and future estimations from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
Battery Materials Market Report Highlights
| Aspects | Details |
 By BATTERY TYPE |
|
 By APPLICATION |
|
 By Region |
|
 Key Market Players | GAN FENG LITHIUM CO. LTD., GLENCORE PLC, BASF SE, .LIVENT CORPORATION, SHERITT INTERNATIONAL CORPORATION, ALBEMARLE, NORLISK NICKEL, TARGRAY TECHNOLOGY INTERNATIONAL INC, TECK RESOURCES, SQM. |
Analyst Review
The global battery materials market benefit from the growing global electronics and electric vehicle market during the forecast period. Although the supply of metals such as Lithium and Nickel could face shortages in the future, investments in the upstream mining sector as well as technological tie-ups between battery manufacturers and mining companies will help in developing battery technology to improve supply and demand conditions. In the consumer electronics segment, integration of new developments such as artificial intelligence, 5G, or even augmented reality will drive battery makers to increase battery range of their products. The demand for smartphones is another driver, as cheap data plans and availability of cheaper models have increased smartphone penetration. The COVID-19 pandemic has affected the global battery metal market, as there was a disruption in its supply in mid-2020. Stimulus packages to revive the economy will likely to increase the incentives for EVs. This will prove helpful for EV sales, thus growing the demand for Li-ion batteries.
Growing electric vehicle market, ongoing surge in consumer electronics market for smartphones and laptops are the key factors driving the Battery Materials market.
The market share of Battery Materials market $45.6 billion in 2020.
increasing demand for energy storage systems in power generation and utilities segments is driving the global market for battery materials.
Asia-Pacific will provide more business opportunities for Battery Materials market in future.
Business expansion and new product launch are the key growth strategies of Battery Materials market players.
The leading players in the market are Albemarle, China Molybdenum Co. Ltd., Gan feng Lithium Co. Ltd., Glencore PLC, Livent Corporation, Norlisk Nickel, Sheritt International Corporation, SQM, Targray Technology International Inc., Teck Resources, Tianqi Lithium, and Vale S.A.
Lithium-ion segment based on battery material holds the maximum market share of the Battery Materials market.
Electronics, automotive, and appliances are the potential customers of Battery Materials industry.
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