Battery Raw Materials Market Expected to Reach $87.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Battery Raw Materials Market," The battery raw materials market size was valued at $47.5 billion in 2021, and battery raw materials industry is estimated to reach $87.1 billion by 2031, growing at a CAGR of 6.3% from 2022 to 2031.

Battery raw materials consist of all materials used in producing battery packs, mainly from lithium, lead, cobalt, and nickel. Extensive usage of batteries in electric vehicles coupled with high demand for consumer electronic products, is anticipated to drive battery raw materials market growth. Industry growth is also accredited to supportive government policies and low barriers to the adoption of electric vehicles. The industry is expected to benefit from increased usage of lightweight and rechargeable batteries in consumer electronics products such as laptops and smartphones. In addition, an expanding middle-income population group with an increased preference for mobile devices is projected to drive battery raw materials market opportunities.

Factors such as growth in awareness about sustainable sourcing of battery raw materials, recycling, and efficient waste disposal, are expected to drive demand. Producers are adopting various regulations and certifications such as the U.S. DOT, PHMSA, and EU-Batteries.

Rise in smartphone sales and electronic devices will boost battery production, thus driving the supply of battery raw materials during the forecast period.  Lithium-ion battery is the most common type of battery installed in a smartphone. It is widely used in various communication and electronics industries as a high-efficiency energy carrier. Although the demand for consumer electronics could decrease due to the effect of COVID-19 pandemic on the consumer purchasing trends, the sales of smartphones and other types of consumer electronics is expected to grow in the long run.

According to a Swedish multinational telecommunications company, Ericsson, a total of around 410 million additional smartphone users are expected in India alone by 2025. The global EV market has also gained foothold in the mainstream automotive market. Batteries are a critical element of an EV and hence, will have a positive influence on the global battery raw materials market. The sales of new EVs will drive the entire supply chain of battery raw materials during the forecast period. The above mentioned are the key factors that provide remunerative opportunities for the growth of battery raw materials market.

The global battery raw materials market forecast is segmented on the basis of by type, material type, and region.

On the basis of type, it is segmented into lithium ion, lead acid, and others. Furthermore, lithium-ion segment is further classified into electric vehicles, consumer electronics, industrial, and others. Lead acid segment is categorized into automotive, industrial and others. On the basis of material type, the market is segmented into cathode, anode, electrolyte, separator, and others.

Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest battery raw materials market share, followed by North America, and Europe.

The major companies profiled in this report include Asahi Kasei Corporation, BASF SE, ECOPRO, Entek International, Johnson Matthey plc., LG Chem Ltd, NEI Corporation, Showa Denko K.K., Targray Technology International Inc., Toshiba Corporation, Hitachi Chemical Co. Ltd., 3M, Nichia Corporation, Valence Technology, Inc., Mitsubishi Chemical Corporation, Celgard, LLC, and Nippon Denko Co, Ltd. Rapid penetration of artificial intelligence and telecommunication technology in daily life has led to increase in utilization of smart consumer electronics, which is expected to increase the demand for battery as they act as power source.

The above-mentioned factors will have positive impact on the demand for battery raw materials. Additional growth strategies such as expansion of storage capacities, acquisition, partnership and research & innovation in the optimization and improvement in efficiency of the battery have led to attain key developments in the global battery raw materials market trends.

Key findings of the study

• Region wise, Asia-Pacific is expected to exhibit CAGR of 6.7% during 2022-2031.
• As per global battery raw materials market analysis, by type, the lithium-ion segment accounted for the largest share in 2021.
• By material type, cathode segment was the leading segment in 2021.

Impact of Covid-19 on Global Battery Raw Materials Market

The global COVID-19 pandemic has a negative impact on the battery raw materials market. This market has experienced lower than anticipated demand across all regions compared to pre pandemic levels. The global market exhibited a decline in 2020 compared to 2019, due to shutdown of various industrial manufacturing facilities and close down of various power generation projects across the globe.

The outbreak of COVID-19 has adversely impacted the market growth due to shutdown of manufacturing industries and decline in utilization of consumer electronics such as portable gadgets. Furthermore, the initiatives taken by the government to curb the spread of pandemic such as lock down had a great impact over the material supply. However, during the second half of the pandemic, there was a sudden surge in the demand for consumer electronics such as laptops, smart phones and other gadgets that were used to do work online. The increase in concept of work from home led to increase in demand for portable electronic gadgets during the pandemic period.

The government initiatives to develop renewable power generation have boosted the demand for batteries for the energy storage, which led to increase in demand for battery raw material market.