The Lithium-Ion battery materials market is projected to rise at a compound annual growth rate (CAGR) of 15.41% to reach a market valuation of US$93.273 billion by 2029, from US$34.200 billion in 2022.
Many factors, including technological advancements, economic factors, and environmental imperatives, impact the lithium-ion battery material market. Continuous R&D efforts centered on new materials and chemistry are yielding batteries with increased energy density, allowing electric car ranges to be reached and electronic devices to be used for longer periods. Moreover, ongoing advancements in material extraction and manufacturing processes are bringing down the overall cost of lithium-ion batteries, making them more affordable for a wider range of applications.
Moreover, the capacity of solar photovoltaic electricity was estimated by iea.org to be 1177.4GW in 2022 and to reach 2835. 5GW by 2026. For renewable energy sources like solar and wind power to be seamlessly integrated into the grid, there is an increasing need for efficient energy storage solutions. Lithium-ion battery demand in grid storage applications is consequently rising dramatically.
The increasing demand for electric vehicles emerges as a pivotal driver, given their substantial reliance on large lithium-ion batteries. Government incentives and regulatory measures aimed at promoting the adoption of electric vehicles further augment market growth. Notably, globally, there were approximately 40 million electric vehicles (EVs) on the road by the end of 2023, following nearly 14 million new registrations during the year. This figure closely aligns with the sales projections outlined in the 2023 Global EV Outlook (GEVO-2023). Compared to 2022, global electric car sales grew by around 35%, highlighting the rapid adoption of EVs worldwide. This surge in EV demand is directly driving the growth of the lithium-ion battery market, as these batteries remain the dominant energy storage technology in electric vehicles.
Additionally, the burgeoning demand for new consumer gadgets is expected to drive battery production. Consumer electronics, like smartphones, necessitate enhanced battery capacity to prolong their usability. Moreover, as disposable income rises, the appetite for consumer electronics is expected to surge, thereby propelling growth in the battery materials market over the projected period.
Portable electronics are becoming popular due to the increasing advancements in wireless technologies and the availability of internet connectivity. Furthermore, there is a growing need for portable devices as people wish to remain connected at all times for communication, information access, or entertainment. Aside from this, improvements in battery technology frequently translate into longer battery lives for lightweight devices. They have lithium-ion batteries built in, which have a longer battery life, and they don't require constant charging. Because they are more space-efficient and lightweight, portable electronic devices that are portable are in higher demand right now.
Renewable energy sources are a fast-growing segment, as they are required to diminish carbon dioxide emissions due to the growing global concern over climate change. They are sources of energy without emissions, which include geothermal, solar, wind, and hydropower, among others. The declining cost of renewable energy sources contributes to their increased economic viability and competitiveness over conventional energy sources. In order to promote the use of renewable energy sources, governing bodies from numerous nations and international organizations are also putting supportive laws, goals, and incentives into place. Further resolving the intermittent problem with renewable energy sources is the development of energy storage technologies like lithium-ion batteries, which increase their accessibility and dependability.
Lithium cobalt oxide is commonly used as the cathode material in lithium-ion batteries. It is among the oldest and most widely used cathode materials due to its beneficial electrochemical properties. Typically, a graphite anode and electrolyte are combined to form a lithium-ion battery. Its crystal structure is layered, and it belongs to the transition metal oxide class. Owing to its elevated voltage and energy density, it finds application in situations where high-performance batteries are imperative. The compound is well known for having a higher specific capacity, or the ability to hold charge per mass or volume unit.
In this region, there is a large increase in the purchase and manufacture of consumer electronic devices. The rule now for the ones in the market is to go into mergers and acquisitions so that they can create new products and have a global presence. To meet the growing demand from the electrical and gadgets sector, manufacturers are developing new products. This is expected to open up lucrative opportunities for the North American battery material market to grow in the years to come. The growing need for electronic devices would also encourage local market expansion during the projected period. The US leads the North American market for battery materials. The primary drivers of market expansion are the growing demand for smart electronic devices and the growing appeal of electric cars and trucks.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Lithium-Ion Battery Materials Market Size in 2022 | US$34.200 billion |
| Lithium-Ion Battery Materials Market Size in 2029 | US$93.273 billion |
| Growth Rate | CAGR of 15.41% |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2024 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Lithium-Ion Battery Materials Market |
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| Customization Scope | Free report customization with purchase |