Global Battery Additives Market - 2023-2030

Global Battery Additives Market - 2023-2030

Market Overview

The global battery additives market reached US$ XX million in 2022 and is projected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of XX% during the forecast period (2023-2030).

Additives are added to batteries to boost their functionality and prolong their lifespan. Additionally, these additives improve a battery's capacity to maintain a charge. Hence, battery additives can also be called electrolyte additives. Additives are used in lithium-ion batteries to improve graphite anode stability. Battery additives are a viable alternative since they enable compact and uniform zinc electrodeposition, extend the battery's life by enabling a more thorough complete dissolution of zinc deposition and keep the Zn(II) concentration stable.

Different battery additives, including conductive, porous and nucleating additives, are employed in various battery types, including lithium-ion, lead-acid and nickel batteries. According to their effectiveness, the lithium-ion battery additives available on the market improve life cycle, enhance safety and enhance ion transfer properties.

Market Dynamics

The key components of batteries are additives, which improve battery performance by reducing corrosion and sulfation. With the older battery, additive treatments work best. Additives that minimize sulfation and corrosion are already in higher demand for new batteries. Improved specific power for high-current load requirements and enhanced specific energy for extended runtimes are two main aspects where battery technology has advanced. The global battery additives market is expanding due to rising developments in renewable energy resources and the widespread use of HEV, PHEV and EVs in the automobile sector.

Increasing use of batteries in consumer electronic products to boost the demand for battery additives

The increasing demand for electric vehicles and consumer electronic products is strengthening the growth of the battery additives market. Energy storage devices, usually batteries, are the basic requirements for all-electric vehicles (EVs), hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs). The need for lead-acid and lithium-ion batteries is growing rapidly among applications like HEV, PHEV and EV in the automobile sector. High-power lead-acid batteries are economical, secure and dependable. Above mentioned factors will bolster the growth of the global battery additives market.

However, their applicability is limited by their low specific energy, poor performance in freezing conditions, short schedule and longevity. Advanced high-power lead-acid batteries are being developed, although they are only employed for minor loads in commercial electric-drive cars. Nickel-metal hydride batteries are most often used in medical and computer devices and have adequate specific energy and specific power capacities. Lead-acid batteries have a substantially shorter lifespan than nickel-metal hydride batteries, which are also more secure and damage resistant. HEVs have frequently used these batteries.

Higher cost, self-discharge and heat release at high temperature restrains the growth

The major concerns with batteries are their high cost, high self-discharge and significant heat generation at high temperatures, which will hamper the battery additives market growth.

COVID-19 Impact Analysis

As the COVID-19 pandemic spread, companies shut their production houses and the demand for electric cars collapsed. Stay-at-home directives and quarantines barred employees from working in factories that made batteries and cars, closed consumer electric goods manufacturing facilities and halted the export of manufactured goods. COVID-19 first appeared in China and quickly spread to South Korea. Together, they produce most lithium-ion (Li-ion) batteries used worldwide.

China continues to be the largest manufacturer, accounting for 73% of yearly LIB production. It dominates the battery supply chain with a capacity for manufacturing batteries that makes up 70-75% of the global total. The COVID-19 effect then spread to North America and Europe, accounting for most non-Chinese demand for such batteries. Due to this development, li-ion battery supply chain interruptions will also impact India's stationary battery storage and electric car markets. The lead acid battery production business is similarly impacted by the supply and demand gap due to the ongoing government shutdown in India. It will impact all business sectors, including energy storage for integrating renewable energy sources, applications in household backup, electronics & communications applications, automobile and other industries.

Therefore, the supply chain disruptions and halt in the production of batteries led to an adverse impact on the global market, which eventually negatively affected the battery additives market. The global shutdown affects the automotive and communication industry the most in the global battery market. After eased the global shutdown, manufacturers started working at full capacity and adopted various new technological advancements to recover from incurred losses during the pandemic.

Segment Analysis

The global battery additives market is segmented based on type, application, end-user and region.

The rising consumer demand for lithium-ion batteries changes the global battery additives market

Due to the rising use of EVs and solar power systems, the lithium-ion battery market has recently seen rapid expansion. The separator, cathode, anode and electrode are the four components that constitute a battery. The demand for battery additives and their end users might increase due to lithium's superior electrochemical potential and high specific energy per weight. Lithium-ion batteries are most commonly employed in consumer electronics products such as smartphones, laptops and other consumer gadgets as they offer high energy per unit of mass compared to other electrical energy storage systems. They also have excellent high-temperature performance, energy efficiency and minimal self-discharge.

As per U.S. Department of Energy, recycling most lithium-ion battery parts is possible. So, the factors mentioned above predict that the lithium-ion batteries application segment is expected to dominate the global battery additives market during the forecasted period and is estimated to be the highest-growing application segment in the next coming decade.

Geographical Analysis

The global battery additives market is segmented based on type, application, end-user and region.

The higher consumption of portable electronic devices and EVs bolsters the Asia-Pacific battery additives market

The increased demand for battery additives in applications for portable electronics and electric vehicles is the key factor driving the expansion of the battery additives market in APAC. APAC has become a significant global industrial hub due to innovation and growth brought about by rising end-user and a growing population. The need for battery additives is rising due to the region's growing industrialization. The growing usage of various electronic devices due to increased e-commerce activities will eventually drive up the market for battery additives. Therefore, emerging economies offer a lucrative growth prospect to battery additives and manufacturers during the forecast period.

Competitive Landscape

In terms of the global and local number of battery manufacturers, the battery additives market is very competitive and some major players operating in the market are Cabot Corporation, 3M, IMERYS, Orion Engineered Carbons, Hammond Group, SGL Carbon Group, Borregaard Group, HOPAX, PENOX and ALTANA. Leading manufacturers are working on new product launches and existing product developments to get an advantage in the battery additives market. Mergers, acquisitions and partnerships are also part of their strategies to expand their geographical presence across all regions.

Cabot Corporation

Overview: Cabot Corporation is headquartered in Boston, U.S. and is a major global specialty chemical and performance materials manufacturer. For more than 135 years, it has provided customers with cutting-edge performance solutions while employing about 4500 persons. Cabot Corporation's product offering includes reinforcing carbons, engineered elastomer composites, specialty carbons, battery materials, fumed metal oxides, masterbatches and conductive compounds, inkjet colorants and aerogel. It operates in all regions, including North America, South America, Europe, APAC and MEA.

Product Portfolio
• Carbon Additives: Carbon additives promote lithium batteries' high delivery power and energy density. Cabot Corporation's portfolio contains two carbon additive products: PBX carbon performance additives and LITX conductive additives. PBX carbon additives are used for lead acid battery applications and LITX conductive additives are commonly used in lithium-ion batteries. Cabot Corporation also offers graphene and silica-based additives, which helps to extend the lifespan of lead acid batteries and enhance the energy density of lithium-ion batteries.

Key Development: On November 15, 2021, Cabot Corporation confirmed that it had successfully acquired Tokai Carbon (Tianjin) Co., Ltd. from Tokai Carbon Group. While continuing to serve current carbon black clients, the acquisition increases Cabot's manufacturing capacity to support the expansion of its Battery Materials product line. The facility can generate 50,000 metric tonnes of carbon black per year. To support the rapid development and growth of lithium-ion batteries brought on by the increased electrification of the vehicle fleet, Cabot plans to invest in upgrading the site's capacity to produce battery grades, as Conductive carbon additives play a crucial role in battery chemistry and performance.

Why Purchase the Report?
• To visualize the global battery additives market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global battery additives market by analyzing trends and co-development.
• Excel data sheet with numerous data points of battery additives market-level with three segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global battery additives market report would provide approximately 61 tables, 57 figures and 235 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies