Lithium Ion Battery Separator Market

Lithium Ion Battery Separator Market Outlook (2022 to 2032)

[288 Pages Report]The global lithium ion battery separator market is expected to secure USD 3,256.7 Million in 2032 while expanding at a CAGR of 7.2%. The market is likely to hold a value of USD 1,624.9 Million in 2022.

With the transition from fuel-based to zero-emission electric vehicles, lithium ion batteries are expected to be consumed in large quantities. The next decade will see multifold growth for automobiles, storage systems, and consumer electronics. From 2016-21, the market displayed a growth rate of 5.3%.

Data Points	Key Statistics
Expected Base Year Value (2022)	USD 1,624.9 Million
Anticipated Forecast Value (2032)	USD 3,256.7 Million
Estimated Growth (2022 to 2032)	7.2% CAGR

Battery cells with abnormal heat generation are separated by a lithium ion battery separator, which shuts down the battery mechanism. Separators for lithium ion batteries facilitate ion transport while preventing short circuits and thus increasing battery reliability by preventing physical contact between anode and cathode.

A lithium ion battery separator is primarily made from nonwoven fibers, polymer films, and ceramics. Since the materials are inexpensive, prevent the mixing of chemicals, and offer improved mechanical properties, porous membranes are commonly used with these materials to manufacture lithium ion battery separators.

To improve the performance of lithium-ion batteries, key producers of the market are switching from polymer separators to ceramic-coated lithium-coated separators, which not only improved performance and life cycle but also decrease the cost of the batteries. Among the factors that make it difficult for new competitors in the world of lithium-ion battery separators are product quality, functions, functionality, and customer service.

The advancement of battery technology has resulted in a greater need for better separator designs. Battery technology relies heavily on separators to maintain efficiency and dependability, and current separators do not meet these standards. Consequently, the market under consideration will have a multitude of options in the market.

How is the market for Lithium Ion Battery Separator Growing?

Government regulations regarding carbon emissions have led to a shift by manufacturers towards lithium-ion batteries for industrial and automobile applications resulting in a growth in the lithium-ion battery separator market. Growing consumption of smartphones, tablets, and electronics products is positively impacting the growth of the lithium-ion battery separator market, globally.

With the development of electronic drivetrains and plug-in hybrid electric vehicles, the automotive industry has become more focused on the production of lithium-ion separators to meet the increasing demand for electric vehicles.

A dramatic increase in technological advancements has resulted in an increased need for superior separator design to maintain battery performance. Commercially available separators, as well as those in development, do not meet the high levels of stability and longevity that are required to ensure the longevity and efficiency of current batteries. As a result, the market studied is likely to be presented with immense opportunities.

What are the Restricting Factors for the Global Lithium Ion Battery Separator Market?

Lithium-ion batteries are also inherently difficult to transport. Lithium-ion batteries are illegal on many airlines, and when it comes to shipping, they are also restricted, so they could be difficult to transport. As a result, this could hamper the growth of the market.

Separators with poor heat resistance melt easily, resulting in the shutdown of batteries, and safety concerns with polyolefin separators restrict the market growth in the global lithium-ion battery market. To overcome these constraints, key manufacturers are enhancing membrane porosity and incorporating composite materials into separators, which improves battery safety and reliability.

How is North America the Leading Consumer of Lithium Ion Battery Separators?

The North American market for lithium-ion battery separators is expected to remain highly competitive in the near future. Approximately 25.4% of the global market share is expected to be generated by this region in 2022. With the presence of leading battery manufacturers and battery separator firms, the North American automotive industry is well-positioned for the manufacture of electric vehicles.

There has been a significant investment made in emerging battery separator technology in the USA and Canada. Additionally, the expansion of EV manufacturers in the USA provides excellent opportunities for companies that manufacture lithium-ion battery separators worldwide.

How is the Demand for Lithium Ion Battery Separators Growing in Europe?

According to analysts, Europe will experience the fastest growth during the forecast period. By the end of the forecast period, Europe is expected to have a market share of 19.8% in 2022. Due to the increasing demand for electric vehicles in this region, lithium-ion battery separator is a growth in the market.

Several initiatives are being taken by the government to promote greener and cleaner fuels, resulting in increased demand for lithium-ion battery separators. The market for e-bikes utilizing lithium-ion batteries in Europe is also growing rapidly, contributing to the market's growth. The COVID-19 pandemic has affected many countries in Europe, so companies are developing innovative technologies to fit standard configurations and give value-added propositions to specific markets.

In order to achieve this objective, battery manufacturers are directly manufacturing and supplying end users, eliminating all intermediaries. As a result, the brand image and product positioning are improved by securing premium customers and providing a value chain for supply-to-replacement and engineering-to-pricing.

Category-wise Insights

What is the Effect of Polyethylene (PE) on the Lithium-Ion Battery Separator Market?

Based on material type the market is segmented into polypropylene, polyethylene, nylon, and others. Polyethylene is expected to have a market share of 37.26% in 2022. Polyethylene separators also feature a shutdown function for extra safety, which has led to the growth of this market.

Polyethylene is being favored by governments around the world due to its excellent thermal stability, which has been driving the segment's growth. Due to their ability to tolerate temperatures up to 130°C, lithium-ion batteries mainly use a single-layer polyethylene (PE) separator.

The high degree of adaptability in the market can be attributed to their excellent mechanical properties, excellent thermal shrinkage, and excellent electronic insulation. The low cost of these separators makes them typical for lithium battery separators. There is a high demand for these materials in commercial lithium battery separators in the market. All these factors have added to the growth of polyethylene in the lithium-ion battery separator market.

How Does Battery Thickness Influence the Market for Lithium-Ion Batteries?

Based on thickness, the market is segmented into 16µm, 20µm, and 25µm. Market demand for 25µm thickness is expected to grow demand for lithium-ion battery separators. Next-generation high-specific energy batteries will have greater energy density as they reduce the thickness of the separator, which will result in a greater improvement in energy density.

To improve the energy density of traditional batteries, the separator thickness must be reduced. As the thickness of the traditional separator decreases, its thermal and mechanical stability will drastically affect the safety and performance of the batteries.

The mechanical properties of the separator are reduced as the thickness of the separator is thinned. An appropriate thickness of the separator is necessary for it to be capable of transporting lithium ions while still maintaining its mechanical properties. This has all contributed to the growth of 25µm thickness in the market.

How do Startups Contribute to the Lithium Ion Battery Separator Industry?

New exciting trends emerge with the evolution of business models, sometimes driven by market changes, sometimes by technological advancements. Besides offering synthetic Lithium Ion Battery Separators, these food & beverage start-up companies are engaged in a wide range of production, and distribution activities.

Most plant-based Lithium Ion Battery Separators are primarily deployed across the food & beverage and pharmaceutical industries, given the heightened use of Lithium Ion Battery Separators in numerous treatments of chronic diseases.

• SEMCORP, was founded in 2017 in Pudong, China. SEMCORP manufactures and supplies lithium-ion battery separators. AFL coating, ceramic coating, PVDF coating, and ceramic coating are some of the battery separators offered by this company. Separators are generally characterized by high tensile strength, low moisture content, uniform pores, bonding strength, and a high level of durability.
• QuantumScape, was founded in 2010 in San Jose, United States. Battery developer specializing in lithium-metal solid-state batteries. Anode electric contacts are connected to a solid-state ceramic separator at the cathode end of the battery. A ceramic separator produces a lithium metal anode by splitting the lithium in the cathode during charging, which creates an electric vehicle charger with high energy density. Solid-state separators are nonflammable, optimum charging time is offered, and manufacturing costs can be reduced.
• Gellec was founded in 2011, in Hangzhou, China. The Jinli New Energy Company manufactures separator materials for lithium-ion batteries. Electric vehicle raw materials such as diaphragms and battery cores are manufactured at this company. Additionally, it develops separators and cathodes for lithium-ion batteries.

Competition Analysis

Key players in the global lithium-ion battery separator market include Asahi Kasei Group, Daramic, Entek International LLC, Targray Technology International Inc., Freudenberg & Co. KG, Mitsubishi Plastics Inc., TEIJIN Limited, Porous Power Technologies LLC, UBE Industries Ltd, W-Scope Corporation, SK Innovation Co Ltd, Celgard LLC, Sumitomo Chemical Company Limited, ENTEK, Natrion, Gellec, SEMCORP and QuantumScape among others.

• In September 2022, Natrion, the Mark Cuban-backed solid-state battery manufacturer, introduced the LISIC278 separator for traditional pouch cells. With a separator, the EV battery is more thermally resistant than other EV batteries, reducing the chances of a fire or combustion. A conventional battery with the same capacity showed a 40 percent reduction in charge rate compared with the cell.
• In April 2022, to meet the growing demand for lithium-ion battery separators, ENTEK announced a major expansion in its USA business. With an eye toward a sustainable and resilient domestic USA lithium battery supply chain, ENTEK is committed to transforming its USA lithium-ion battery separator footprint. The company expects to produce 1.4 billion square meters of lithium-ion separators per year by 2027, after completing its first major expansion in the USA by 2025. By the time this expansion is complete, 1.4 million electric cars will be powered by separator material.

Report Scope

Report Attribute	Details
Growth Rate	CAGR of 7.2% from 2022 to 2032
Market Value in 2022	USD 1,624.9 Million
Market Value in 2032	USD 3,256.7 Million
Base Year for Estimation	2021
Historical Data	2016 to 2021
Forecast Period	2022 to 2032
Quantitative Units	Revenue in USD Million and CAGR from 2022 to 2032
Report Coverage	Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered	Material, Temperature Resistance, Thickness, Region
Regions Covered	North America; Latin America; Europe; Asia Pacific; Middle East and Africa
Key Countries Profiled	The USA, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, GCC, South Africa, Israel
Key Companies Profiled	Asahi Kasei Group; Daramic; Entek International LLC; Targray Technology International Inc.; Freudenberg & Co. KG; Mitsubishi Plastics Inc.; TEIJIN Limited; Porous Power Technologies LLC; UBE Industries Ltd; W-Scope Corporation; SK Innovation Co Ltd; Celgard LLC; Sumitomo Chemical Company Limited; ENTEK; Natrion
Customization	Available Upon Request

Key Segments Profiled in the Global Lithium Ion Battery Separator Market

By Material:

• Polypropylene
• Polyethylene
• Nylon
• Other Materials-based

By Temperature:

• 10oC -25oC
• 130oC-135oC

By Thickness:

• 16µm
• 20µm
• 25µm

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa

Frequently Asked Questions

What is the anticipated growth of the lithium-ion battery separator market until 2032?

FMI projects the global lithium-ion battery separator market to expand at a 7.2% value CAGR by 2032

Which region is forecast to be the most lucrative for lithium-ion battery separator market growth?

North America is expected to be the most opportunistic lithium-ion battery separator market, accumulating 25.4% revenue in 2022

Which are some prominent Lithium Ion Battery Separator manufacturers?

Asahi Kasei Group, Daramic, Entek International LLC, Targray Technology International Inc., and Freudenberg & Co. KG are some of the prominent players of the market.