The global battery materials market size reached USD 54.1 billion in 2022 and is set to total USD 57.9 billion by 2023. Global battery material sales are projected to increase at 5.9% CAGR during the assessment period, taking the overall market valuation to around USD 102.8 billion by 2033.
Automotive industry is expected to present lucrative growth prospects for battery material producers. This is due to rising production and sales of vehicles and a shift towards electric cars. The latest battery materials industry insights predict the target segment to thrive at 5.4% CAGR through 2033.
| Attributes | Key Insights |
|---|---|
| Global Battery Materials Market Value in 2022 | USD 54.1 billion |
| Estimated Battery Materials Market Size (2023) | USD 57.9 billion |
| Expected Market Size (2033) | USD 102.8 billion |
| Predicted Battery Materials Market CAGR (2023 to 2033) | 5.9% |
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A Colossal Market Valuation Despite Reduced CAGR
Despite a slight drop in predicted CAGR, the global battery materials market is projected to expand nearly 1.8X, reaching a colossal valuation of 102.8 billion by 2033. This is due to ongoing transition to electric vehicles, increasing demand for energy storage systems, and advancements in battery materials.
Lithium-ion Batteries Going Head-to-head with Lead-acid Ones
Lead-ion batteries are leading the battery materials market and will likely retain dominance during the forecast period. This is attributable to the rising usage of lead-acid batteries across several industries because of their reliability, durability, and cost-effectiveness.
Lead-acid batteries are among the widely used types of batteries globally. They are relatively inexpensive and easy to manufacture. As a result, these batteries find usage in start-stop systems of automobiles, backup power systems, and other applications, thereby creating high demand for battery materials.
However, lithium-ion batteries are gradually making significant inroads into emerging markets like automotive and consumer electronics. This is due to their advantages, such as high energy density, better efficiency, and longer cycle life. Driven by this, lithium-ion battery materials demand is set to rise significantly.
Ongoing technological advancements in lithium-ion batteries and decreasing costs are expected to fuel their adoption. This will create demand for lithium battery materials like graphite, graphene, titanate, iron phosphate, cobalt oxide, electrolytes, and separators.
Due to their attractive advantages, lead-acid batteries are expected to face high competition from lithium-ion batteries. High adoption of lithium-ion batteries in electric vehicles, consumer electronics, and other applications is likely to create demand for lithium-ion materials and improve market share of the target segment through 2033.
United States Likely to Retain its Dominance Through 2033
The United States is expected to dominate the global battery materials industry during the forecast period. This is due to rapid growth of the renewable energy sector, increasing popularity of electric & hybrid vehicles, and presence of top battery material manufacturers.
Rising environmental concerns and increasing energy demand are attractive huge investments in renewable energy sources and energy-efficient vehicles in the United States. This, in turn, is expected to create a high demand for battery materials.
Americans are also shifting their preference from gasoline and diesel-powered vehicles to electric ones to reduce emissions and comply with regulations. This is anticipated to bolster sales of battery materials in the country.
Manufacturers Using Innovation as a Success Tool
The massive predicted valuation of USD 102.8 billion indicates the huge potential of the battery materials industry. This might lure companies to try their hands in the battery material business, making it more competitive.
Key companies are using innovation to develop novel battery materials that can store more energy, last longer, and charge & discharge faster. This is helping them boost revenues and remain ahead of the curve. This is anticipated to foster the global battery materials market growth.
As the world continues to seek more efficient, longer-lasting, and sustainable energy storage solutions, innovations in battery materials will remain a hotbed of research and development. Researchers and battery material companies are exploring novel anode and cathode materials like high-nickel formulations and silicon.
Several companies are also developing more sustainable and recyclable battery materials, which could help reduce the environmental impact of battery production and disposal. This will boost the revenue of the battery material producers.
Innovations in battery materials and chemistry also lead to performance, safety, and cost-effectiveness breakthroughs. Hence, companies will continue to innovate to solidify their position in the battery materials market.
Battery materials make components like cathode, anode, electrolyte, and separator. They allow batteries to store and release energy.
Different battery materials are used to make specific batteries. For instance, lithium-ion batteries generally use graphite for anode, lithium cobalt oxide for cathode, and a lithium salt dissolved in a solvent for electrolytes.
Lead-acid batteries use lead and lead dioxide for electrodes and sulfuric acid for electrolytes. Subsequently, nickel and cadmium as electrodes and potassium hydroxide as electrolyte are used in nickel-cadmium batteries.
Battery materials are vital to developing new energy technologies, including renewable energy storage and electric vehicles. They are witnessing high demand due to the increasing adoption of batteries across several industries.
The global battery materials industry is projected to thrive during the forecast period. This is due to the growing trend of electrification, high adoption of electric vehicles, and expansion of the renewable energy sector.
Nations worldwide invest huge amounts to develop and expand their renewable energy infrastructure. This is expected to create high demand for energy storage systems, fostering growth in the battery materials market.
Leading battery material producers are developing new and improved battery materials. These new materials can help to make renewable energy more affordable and accessible, eventually reducing the world’s reliance on fossil fuels.
Global battery material sales revenue grew at a CAGR of about 7.8% from 2018 to 2022. Total market value reached around USD 54.1 billion at the end of 2022. In the assessment period, the target market is poised to exhibit a CAGR of 5.9%,
| Historical CAGR (2018 to 2022) | 7.8% |
|---|---|
| Forecast CAGR (2023 to 2033) | 5.9% |
The worldwide battery materials industry witnessed robust growth between 2018 and 2022. This was due to high adoption of consumer electronics.
There was a spike in demand for consumer electronic devices like smartphones, laptops, tablets, etc., during the COVID-19 pandemic due to the rise of remote work and online learning. This created high demand for battery materials, as most consumer electronics rely on rechargeable batteries.
The increased installation of renewable energy systems that rely on energy storage solutions also boosted global sales of battery materials. With these dynamics, the global battery materials market totaled a valuation of USD 54.1 billion in 2022.
Principal Consultant
The global market for battery materials is forecast to attain a valuation of USD 102.8 billion by 2033, despite reduced CAGR. This is attributable to increasing adoption of electric & hybrid vehicles, increasing investments in solar and wind power, and continuous advancements in battery technology and materials.
The electric vehicle sector is witnessing exponential growth, and the trend will likely continue in the upcoming years. This is due to rising environmental concerns, high demand for clean technologies, and increasing government initiatives and regulations to encourage adoption of electric vehicles.
According to the International Energy Association (IEA), around 2.3 million electric cars were sold in the first quarter of 2023. Total electric vehicle sales are estimated to reach 14 million by the end of 2023.
The robust outlook of EVs is expected to expand battery manufacturing worldwide. This will uplift global demand for battery materials during the forecast period.
Lithium, nickel, graphite, and cobalt are used in lithium-ion batteries of electric vehicles. Hence, increasing production and sales of EVs is set to create growth opportunities for battery material manufacturers.
Growing popularity of new battery technologies and advancements in battery materials are anticipated to foster market growth. Novel battery technologies like lithium-sulfur (Li-S), solid-state, and lithium-air (Li-air) batteries are gaining wider popularity. This is because they have a much higher energy density than lithium-ion batteries.
Companies like BASF produce and supply high-performance cathode active materials (CAM) for electric vehicles and battery producers globally. They are innovating to meet the evolving requirements of end users.
Businesses providing new solutions for transforming to a circular economy will likely get a competitive advantage. As a result, companies are bringing new ideas and introducing ambitious circular economy programs.
For instance, BASF launched a new Circular Economy Program in December 2020.The company expects to double its sales generated with circular economy by 2030.
Semi Annual Market Update
| Particular | Value CAGR |
|---|---|
| H1 | 5.70% (2022 to 2032) |
| H2 | 5.80% (2022 to 2032) |
| H1 | 6.10 (2023 to 2033) |
| H2 | 5.50% (2023 to 2033) |
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The table below highlights key countries’ battery materials market revenue. The United States, China, and Japan are the three key markets for battery materials, with projected valuations of USD 18.0 billion, USD 14.9 billion, and USD 10.1 billion, respectively, in 2033.
Countries like the United Kingdom, South Korea, and India are expected to present revenue-generation opportunities for battery material manufacturers. This is due to rising production and sales of vehicles, favorable government support, and rapid industrial growth.
| Countries | Market Value (2033) |
|---|---|
| United States | USD 18.0 billion |
| United Kingdom | USD 3.7 billion |
| China | USD 14.9 billion |
| Japan | USD 10.1 billion |
| South Korea | USD 5.3 billion |
Below table shows the estimated battery materials market growth rates of the top five countries. The United Kingdom, Korea, and Japan are set to experience higher CAGRs of 6.8%, 8.3%, and 7.1%, respectively, through 2033.
| Countries | Projected Battery Materials Market CAGR (2023 to 2033) |
|---|---|
| United States | 6.1% |
| United Kingdom | 6.8% |
| China | 6.3% |
| Japan | 7.1% |
| South Korea | 8.3% |
The table below highlights the top five countries’ historical market growth rates. With CAGRs of 9.7%, 9.1%, and 9.0%, respectively, South Korea, the United Kingdom, and Japan were the key markets for battery material between 2018 and 2022.
| Countries | Historical Battery Materials Market CAGR (2018 to 2022) |
|---|---|
| United States | 8.1% |
| United Kingdom | 9.1% |
| China | 8.4% |
| Japan | 9.0% |
| South Korea | 9.7% |
The United States battery materials market size is forecast to reach USD 18.0 billion by 2033. Over the assessment period, battery material demand in the country is projected to rise at 6.1% CAGR.
As per the latest report, the United States is expected to lead the global battery materials market during the forecast period. This is attributable to robust growth of renewable energy sector, growing demand for electric vehicles, and heavy presence of leading automakers.
Amid escalating energy demand and growing environmental concerns, the United States is transitioning towards renewable sources like solar and wind. According to the Solar Energy Industries Association, the United States solar industry installed a total capacity of around 6.1 gigawatts-direct current in the first quarter of 2023.
Expanding renewable energy sector is expected to generate high demand for energy storage systems (ESS). This will positively impact battery material sales in the country during the forecast period.
Rising preference for electric vehicles is another key factor expected to fuel demand for battery materials in the United States. Subsequently, introduction of the Inflation Reduction Act (IRA) is improving the United States battery materials market share.
The IRA is prompting global electromobility companies to expand their operations in the United States. This is expected to create lucrative opportunities for battery material manufacturers and foster growth in the lithium battery materials industry in the United States.
China battery materials market value is predicted to total USD 14.9 billion by 2033. Over the forecast period, sales of battery materials in the country are likely to soar at around 6.3% CAGR. This is attributable to growing adoption of electric vehicles and technological advancements in battery materials.
China leads from the forefront in electric vehicle manufacturing and sales. It was the leading country for electric vehicles in 2020, with around 4.5 million electric cars, as per the International Energy Association (IEA).
Globally, China accounted for around 60% of all new car registrations in 2022. This growing popularity of electric vehicles is expected to fuel sales of battery materials like lithium, graphite, nickel, cobalt, and others.
China is also home to several top battery material manufacturing companies. These companies are constantly developing new battery technologies that need novel battery materials.
For instance, several China-based companies are concentrating on developing next-generation lithium-ion batteries. This will create demand for novel materials like lithium-nickel-manganese-cobalt oxide (NMC) and lithium-nickel-cobalt-aluminum oxide (NCA).
The United Kingdom battery materials market is expected to thrive at a CAGR of 6.8% during the assessment period. By 2033, total market valuation is anticipated to reach USD 3.7 billion in the country.
Several factors are driving the United Kingdom battery materials industry forward. These include increasing investments in renewable energy sources and rising government support for developing clean energy technologies like battery storage and EVs.
Escalating energy demand across the United Kingdom puts renewable energy sources like wind and solar power into the spotlight. The country is investing rigorously in developing and expanding its renewable energy infrastructure.
Expansion of renewable energy infrastructure is expected to create demand for energy storage systems that use batteries to store excess energy. This, in turn, is set to boost the battery materials market in the country.
In March 2023, the European Union adopted new CO2 standards for vans and cars to reduce emissions. As a result, European automotive companies are racing to develop battery electric vehicles (BEVs) as quickly as possible. This will bode well for the battery materials industry.
Japan is emerging as a lucrative market for battery material manufacturers globally. This is due to the growing trend towards electrification, favorable government support, and high adoption of electric vehicles.
Japan battery materials market size is projected to reach USD 10.1 billion by 2033. Overall sales of battery materials in Japan are likely to rise at a CAGR of 7.1% during the assessment period.
Japan is emerging as one of the leading markets for electric vehicles globally. The government in Japan is providing subsidies and tax breaks to encourage the adoption of EVs. This is driving demand for battery materials like lithium and nickel, and the trend is expected to continue through 2033.
Thanks to rising popularity of battery electric vehicles, the scope of the lithium-ion battery materials market in Japan is vast. It is likely to remain a key market for manufacturers of battery materials.
Every vehicle manufactured by Japanese automobile companies will be electrified by 2050, according to the Ministry of Economy, Trade and Industry (METI). This is expected to create demand for battery materials.
The large presence of the world’s leading battery manufacturers like Sony and Panasonic is also expected to boost market revenue in Japan. These companies are investing in new battery technologies, including solid-state batteries, which will likely fuel demand for battery materials.
South Korea is set to register a robust CAGR of 8.3% during the assessment period compared to the 9.7% CAGR recorded from 2018 to 2022. Total market valuation in the country is forecast to reach USD 5.3 billion by 2033.
Multiple factors drive growth in South Korea battery materials industry. These include rising consumer electronics adoption and shifting towards energy-efficient vehicles like EVs.
Amid high penetration of digitalization and fast-speed internet, usage of consumer electronic devices like laptops and smartphones across Korea is expected to rise rapidly. These portable electronic devices rely on rechargeable batteries. As a result, their high adoption will likely create high demand for battery materials.
Rapid shift towards electric vehicles creates opportunities for battery material manufacturers in Korea. It is also prompting them to use tactics like partnerships and collaborations.
For instance, South Korean battery material manufacturers are forming partnerships with global EV companies to secure long-term contracts. This is expected to foster the battery materials market growth in Korea.
Below section shows the lead-acid segment dominating the market based on battery type. It is predicted to expand at 5.7% CAGR between 2023 and 2033.
Based on application, automotive segment is set to hold a prominent market share. It will likely thrive at a CAGR of 5.4% during the forecast period.
| Top Segment (Battery Type) | Lead-acid |
|---|---|
| Predicted CAGR (2023 to 2033) | 5.7% |
The battery materials market by battery type is categorized into lithium-ion, lead-acid, and others. Among these, the lead-acid battery segment is expected to generate significant revenue in the target market. This is due to rising adoption of lead-acid batteries across several industries.
As per the latest report, lead-acid segment is poised to exhibit a CAGR of 5.7% during the forecast period. Historically, the same segment expanded at 7.5% CAGR.
Lead-acid batteries have been a popular battery type used globally for a long time. This is due to the reliable and cost-effective nature of these energy storage options. These batteries are also easy to manufacture.
Growing usage of lead-acid batteries in vehicles, UPS systems, grid-scale power systems, etc., is expected to create high demand for battery materials. These batteries are composed of anode, cathode, electrolyte, and separator.
Lead-acid batteries are known for their cost-effectiveness, reliability, durability, and eco-friendliness. They are widely used in automotive start-stop systems and backup power systems. As the need for cost-effective and reliable energy storage options continues to rise, so will the sales of lead-acid batteries and battery materials.
On the other hand, lithium-ion batteries are rising in popularity due to their advantages, like high energy density. They are increasingly used in applications like consumer electronics and electric vehicles. Growing popularity of these batteries is set to drive demand for lithium battery materials.
| Top Segment (Application) | Automotive |
|---|---|
| Projected CAGR (2023 to 2033) | 5.4% |
As per the latest report, automotive industry is expected to create lucrative opportunities for battery material manufacturers during the forecast period. This is due to rising production and sales of automobiles and growing popularity of electric vehicles.
From 2018 to 2022, automotive segment exhibited a CAGR of 7.4%. In the assessment period, a CAGR of 5.4% has been estimated for the automotive segment, making it the primary target for battery materials producers to boost their revenues.
As electrification continues to make strides in the automotive industry, usage of batteries in vehicles is set to increase substantially. This, in turn, is expected to fuel demand for battery materials during the forecast period and boost the target segment.
Implementing stringent regulations for encouraging adoption of electric and hybrid cars is another key factor expected to drive growth of the automotive EV segments. These two segments together are expected to hold a dominant market share through 2033.
Key manufacturers of battery materials listed in the report include Asahi Kasei Corporation, BASF SE, Dow, Inc., DuPont de Nemours, Inc., Entek International, Gravita’ India Limited, Hitachi Chemical Co., Ltd., Johnson Matthey PLC, Kureha Corporation, and Mitsubishi Chemical Corporation.
These top battery material companies are spending heavily on research and development to advance battery material technology and meet rising demand from the growing electric vehicle industry. They are also establishing new manufacturing facilities and adopting strategies such as acquisitions, joint ventures, mergers, alliances, partnerships, alliances, and collaborations to expand their portfolios and footprint.
Recent Developments in Battery Materials Market:
| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | USD 57.9 billion |
| Projected Market Value (2033) | USD 102.8 billion |
| Anticipated Growth Rate (2023 to 2033) | 5.9% CAGR |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Billion, Volume (Tons), and CAGR from 2023 to 2033 |
| Segments Covered | Battery Type, Application, and Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others. |
| Key Companies Profiled | Asahi Kasei Corporation; BASF SE; Dow, Inc.; DuPont de Nemours, Inc; Entek International; Gravita India Limited; Hitachi Chemical Co., Ltd.; Johnson Matthey PLC; Kureha Corporation; Mitsubishi Chemical Corporation |
The global market size totaled USD 54.1 billion in 2022.
The global market value is set to reach USD 57.9 billion in 2023.
By 2033, the global industry is projected to reach USD 102.8 billion by 2033.
The global market registered a CAGR of 7.8% from 2018 to 2022.
Global battery demand is forecast to rise at 5.9% CAGR through 2033.
Adoption of lithium-ion batteries, innovation in materials, and electrification are key trends.
The United States market value is set to reach USD 18.0 billion by 2033.
Asahi Kasei Corporation and BASF SE are among few market leaders.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Battery Type 5.1. Lead-Acid 5.2. Lithium-Ion 5.3. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Automotive 6.2. EVs 6.3. Portable Devices 6.4. Industrial 6.5. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Asahi Kasei Corporation 17.2. BASF SE 17.3. Dow, Inc. 17.4. DuPont de Nemours, Inc 17.5. Entek International 17.6. Gravita India Limited 17.7. Hitachi Chemical Co., Ltd. 17.8. Johnson Matthey PLC 17.9. Kureha Corporation 17.10. Mitsubishi Chemical Corporation 18. Assumptions & Acronyms Used 19. Research Methodology
Chemicals & Materials
June 2024
REP-GB-5474
309 pages
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Battery Materials Market
