Global Next-Generation Anode Materials Market - 2022-2029

Global Next-Generation Anode Materials Market - 2022-2029

Market Overview

The next-generation anode materials market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

The various types of next-generation anode materials include Lithium titanium oxide, silicon-graphene, silicon/silicon oxide blends and silicon-carbon composites are used in the batteries. Due to substantial investments and continued active research, these sorts play a significant role in the market. The next-generation anode materials are widely used in Lithium-ion batteries for significant applications in e-bikes, electric vehicles, energy storage systems, consumer electronics and power tools such as tablets and mobile phones.

Silicon is one of the commonly used materials in batteries due to its capability to increase the charging speed by improving the charging capacity up to 10 times that of the graphite anode material. In addition, it is beneficial for producing small batteries due to their lightness and small volume. The material can also be utilized for information technology devices such as mobile devices and ultra-small aircraft such as drones.

Market Dynamics

The global next-generation anode materials market is boosted by the need for materials for enhancing battery performance.

Need for materials for enhancing battery performance

The slow pace of battery improvement is primarily due to chemistry. The anode in traditional lithium-ion batteries is carbon in the form of graphite, which has surpassed its energy density limit. To boost battery performance, new anode material is necessary and that material is silicon. Because of its high specific capacity, large deposits and low intercalation potential, silicon is considered the next-generation anode material for lithium-ion batteries. Silicon can hold up to ten times more lithium than graphite, allowing for substantially more energy in batteries. The countries are investing heavily in the search for developing more effective batteries. For instance, in 2020, NEI Corporation and 3DBattery Company announced that the BIRD Energy program had awarded the companies a $900,000 grant to integrate an advanced anode material with a water-based electrode deposition, leading to a generation of low-cost and high-performance Lithium-ion batteries. The grant was given by the U.S. Department of Energy and Israel's Ministry of Energy and the Israel Innovation Authority.

With the surge of increasingly lethal and hostile battlefields, new technologies, including reconnaissance drones, are being deployed regularly to help ensure safety. The drones should be lightweight enough to carry onto the field and contribute enough flight time to achieve mission objectives effectively. In 2021, Amprius Technologies announced has been awarded a contract with the U.S Army's Rapid Capabilities and Critical Technologies Office. The contract includes developing and validating high-energy-density lithium-ion batteries to be used in unmanned aircraft system applications such as drone systems used by the US Army. The military will benefit from approximately 100% enhanced battery performance, doubling the run-time for all mobile-powered devices with commercially accessible 100 percent Silicon Anode battery.

Battery volume expansion and degradation

Silicon has emerged as a desirable anode material as it has almost ten times the energy density of current graphite anodes. However, silicon anode is still in a developing phase and needs some modifications to be commercially used. The major problem with silicon anodes tends to expand and degrade quickly as a battery charges and discharges, especially with the liquid electrolytes currently used in lithium-ion cells, which has helped keep them out of commercial batteries.

The anode material with high silicon content is responsible for battery volume expansion. The other problems include low first discharge efficiency, poor conductivity and poor cycling performance that need to be improved. However, with huge investments in the market, silicon-based anode materials' problems are expected to be resolved soon.

COVID-19 Impact Analysis

The market for major domestic cooking appliances has been unstable during the COVID-19 outbreak. The next-generation anode materials are widely used in automotive, consumer electronics, renewable, industrial and other industries. However, due to the pandemic, most industries have to face losses, which result in negative demand for next-generation anode materials. For instance, Over the first half of 2020, electric car sales were 15% lower than over the same period in 2019.

The anode uses various types of materials such as silicon, lithium titanium oxide, silicon graphene, lithium metal and other materials. Hence, the market has also observed an exponential spike in the process of raw materials, affecting the market's growth. For instance, silicon metal prices were up 300% in China due to the closure of works and shortage of materials.

Segment Analysis

By end-user, the next-generation anode materials market is segmented into automotive, consumer electronics, grid and renewable energy, industrial and others.

Rising sales of electric vehicles are boosting the market for next-generation anode materials

Policymakers are looking to switch from gas-powered cars to driving clean, non-polluting electric vehicles to curb global warming. Major automakers plan to make that happen, encouraging a full line of electric vehicles by 2030. The U.S Department of Energy has projected a 5 to 10 fold increase in global EV battery demand by 2030. Startups, research teams and auto manufacturers are speeding to meet this demand by developing improved EV batteries that charge faster, last longer, have more energy and eliminate the use of expensive materials. Recently, the Biden administration announced a series of steps to strengthen U.S. battery-making capacity, including US$ 200 million in next year's budget for battery research and development.

Various companies have launched new products, which are expected to strengthen the next-generation anode materials market demand. For instance, in 2021, Sila is bringing a significant breakthrough in battery, which replaces graphite anodes. Sila's silicon anode chemistry dramatically improves the energy density of batteries, decreasing battery size without sacrificing safety or performance. Sila science can unlock innovations in the electric vehicle industry.

Geographical Analysis

Rapid investments in the countries for manufacturing efficient batteries are boosting sales in the Asia-Pacific

The demand from automotive manufacturers and governments to increase the driving range of electric vehicles to support widespread adoption prompts battery producers to look for ways to increase the length of time batteries can run between charges. The technological development of smart electronic devices is creating further demand for batteries with larger capacity. Various leading companies in the region, such as SK Materials, Toshiba and POSCO, are setting their sights on silicon anode amid growing demand from electric-vehicle batteries manufacturers.

With the development of social progress, energy demands are becoming more urgent in numerous fields such as renewable energy generation systems, electronics and electric vehicles. For instance, in 2021, SK Materials will establish a silicon anode material plant in Korea, which is considered a next-generation battery material. Silicon anode is gaining attention as a key material to increase the charging speed of electric vehicle batteries. The company plans to secure future growth engines by developing its battery materials business, such as anode material protection materials and silicon anode materials. SK Materials had exchanged a memorandum of understanding with Gyeongsangbuk-do and Sangju-si to establish a silicon anode material and raw material production plant.

Moreover, in 2021, Toshiba Corporation, Sojitz Corporation and CBMM have entered into a joint development agreement to commercialize next-generation lithium-ion batteries using niobium-titanium oxide (NTO) as the anode material. The companies have now agreed to extend their collaboration to accelerate the development of mass production processes and the early commercialization of next-generation lithium-ion batteries. NTO has twice the theoretical volume density of the graphite-based anode commonly used in lithium-ion batteries.

Competitive Landscape

The next-generation anode materials market is moderately competitive with the presence of global companies. However, the market is expected to expand with new entrants due to prospect opportunities. In addition, key players contributing to the market's growth are Sicona Battery Technologies Pty Ltd, Sila Nanotechnologies Inc, Amprius Technologies, Albemarle Corporation, SK Materials, California Lithium Battery, Showa Denko Materials Co., Ltd., Shanshan Technology, Talga Group Ltd, JSR Corporation and others. The players are adopting strategies, such as launching new products, acquisitions and expansion, contributing to the global growth of the next-generation anode materials market.

Sicona Battery Technologies Pty Ltd

Overview: Sicona creates next-generation battery materials for the anodes of lithium-ion batteries, which enable electric mobility and renewable energy storage. Sicona is commercializing a unique silicon-composite battery anode technology developed and improved at the Australian Institute for Innovative Materials over the previous ten years. The company's current generation silicon-composite anode technology has a capacity range of 50% to 100% higher than conventional graphite anodes. Sicona has also created a water-based binder with a 3D network structure, increased electro-conductivity and self-healing capabilities that significantly extend the next-generation anodes cycle.

Product Portfolio: The company manufactures composite anode material, a blend of silicon nanoparticles, graphite and coal tar pitch. It is manufactured by synthesizing nano-silicon from micro-silicon feedstock, blending it through numerous stages of ball milling and sintering it in a furnace.

Key Development: In 2021, Sicona Corp. announced that its 100% owned Swedish subsidiary Woxna Graphite AB had signed the MOU with Sicona Battery Technologies Pty Ltd. The MOU lays out the path for establishing a Sweden-based 50/50 Joint Venture targeting the production of advanced natural graphite and silicon-graphite-carbon composite active anode materials using natural graphite from the Woxna Graphite mine.

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Visualize the next-generation anode materials market segmentation by type, end-user and region, highlighting the key commercial assets and players.

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