What Has Driven the Growth of the Battery Materials Market in Recent Years?
The battery materials market has seen considerable growth due to a variety of factors.
• In recent times, there has been a significant surge in the market size of battery materials, which is projected to escalate from $63.54 billion in 2024 to $70.68 billion in 2025, maintaining a compound annual growth rate (CAGR) of 11.2%. This marked expansion during the historical era has been brought about by factors such as the rise in portable electronics usage, advancements in the field of energy storage, increased consumer expectations for prolonged battery lifespan, incorporation of renewable energy, governmental schemes and subsidies, preference for lightweight materials, and funding for research and development initiatives.
What Is the Forecasted Market Size and Growth Rate for The Battery Materials Template Market?
The Battery Materials market is expected to maintain its strong growth trajectory in upcoming years.
• In the ensuing years, the battery materials market is projected to experience a swift escalation in its size. The market is predicted to balloon to a substantial $107.25 billion by 2029, with a compound annual growth rate (CAGR) of 11.0%.
Factors contributing to this growth within the forecast period include the shift towards solid-state batteries, advances in lithium-sulfur batteries, the need for affordable materials, the growth of energy storage systems, material breakthroughs for high-temperature applications, and worldwide initiatives towards carbon neutrality. Noteworthy trends during this period encompass minimization of cobalt usage and exploring alternative chemistries, progress in anode materials, the recycling of battery materials, newly developing markets in the energy storage sector, as well as investments directed towards the exploration and mining of raw materials.
What Factors Are Driving Growth In The Battery Materials Market?
The growth of the battery materials market is anticipated to be driven by the surging adoption of electric vehicles. These vehicles, which are powered by an electric motor instead of an internal combustion engine, employ significant traction battery packs to power the motor materials. These batteries, integral to electric vehicles, offer enhanced energy density, lower self-discharge rates, reduced maintenance, and an increased number of charge cycles. As reported by the International Energy Agency, a US-based organization, in March 2024, the number of new electric car registrations in the U.S. totalled 1.4 million in 2023, marking an increase of over 40% compared to 2022. This surge in the adoption of electric vehicles is, therefore, contributing to the expansion of the battery materials market.
What Are The Main Segments Of The Global Battery Materials Market?
The battery materials market covered in this report is segmented –
1) By Type: Cathode, Anode, Electrolyte, Separator, Other Types
2) By Battery Type: Lithium Ion, Lead Acid, Other Battery Type
3) By Application: Automobile Industry, Household Appliances, Electronics Industry, Other Application
Subsegments:
1) By Cathode: Lithium Cobalt Oxide (LCO), Lithium Iron Phosphate (LFP), Nickel Manganese Cobalt (NMC), Nickel Cobalt Aluminum Oxide (NCA), Other Cathode Materials
2) By Anode: Graphite, Silicon-Based Anodes, Lithium Titanate, Other Anode Materials
3) By Electrolyte: Liquid Electrolytes, Solid Electrolytes, Gel Electrolytes, Polymer Electrolytes
4) By Separator: Polyethylene (PE), Polypropylene (PP), Ceramic-Coated Separators, Other Separator Materials
5) By Other Types: Conductive Additives, Binders, Current Collector
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What Emerging Trends Are Influencing The Growth Of The Battery Materials Market?
The advent of technological breakthroughs is driving the battery materials market, with leading firms launching innovative technologies to secure their market position. For example, Cabot Corporation, a US manufacturer of materials, unveiled ENTERA Aerogel Particles in May 2023. These are intended for use in Lithium-ion Batteries to boost thermal barriers, directly dealing with critical issues such as thermal management and safety, thereby boosting battery performance. The development of cutting-edge materials like ENTERA dovetails with the sector's pursuit of high performance and sustainability in battery technologies. The industry is witnessing a shift towards enhanced safety and efficiency, reflected in Cabot's commitment to material development, as they strive to refine lithium-ion battery technology in line with the global growth of electric mobility.
Who Are the Key Players In The Battery Materials Market?
Major companies operating in the battery materials market include:
• Asahi Kasei Corporation
• BASF SE
• Mitsubishi Chemical Holdings Corporation
• Sumitomo Corporation
• Umicore NV
• Albemarle Corporation
• Livent Corporation
• Nichia Corporation
• Toray Industries Inc.
• POSCO Holdings Inc.
• Showa Denko KK
• Hitachi Chemical Company Limited
• China Molybdenum Company Limited
• Ganfeng Lithium Co. Ltd.
• MMC Norilsk Nickel PJSC
• Ningbo Shanshan Company Limited
• Saudi Basic Industries Corporation (SABIC)
• Ensinger Group
• DIC Corporation
• Celanese Corporation
• Johnson Matthey PLC
• Lanxess AG
• Glencore PLC
• Norilsk Nickel
• Panasonic Holdings Corporation
• NEC Corporation
• LG Chem
• Toshiba Corporation
• Amperex Technology Limited
• BAK Group
What Is The Most Dominant Region In The Battery Materials Market?
Asia-Pacific was the largest region in the battery materials market in 2024. The regions covered in the battery materials market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
