Lithium-Ion Battery Materials Market - Forecasts from 2024 to 2029

Lithium-Ion Battery Materials Market - Forecasts from 2024 to 2029

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. .

Rising demand for electric vehicles

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 40 million electric vehicles were on the road as of 2023 having nearly 14 million new registrations. This figure closely matched the sales projection from the 2023 Global EV Outlook (GEVO-2023). Sales of electric cars increased by 30. 5 million in 2023 compared to 2022 a 35 percent increase over the previous year. underscores the rapid adoption of electric vehicles worldwide, consequently propelling the demand for lithium-ion batteries prominently utilized in electric cars.

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.

Rising demand for lightweight and portable electronic devices

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 electronic devices that are portable are in higher demand right now.

Increasing utilization of renewable energy sources

Renewable energy sources are a fast growing segment, as they are required to diminish carbon dioxide emissions with 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.

High demand for lithium cobalt oxide

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, 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.

North America is witnessing exponential growth during the forecast period

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 in are the growing demand for smart electronic devices and the growing appeal of electric cars and trucks.

Segmentation:

By Battery Chemistry

LMO
NCA
LCO
LFP
NMC

By Material

Anode
Cathode
Electrolyte

By Application

Electric Vehicle
Industrial
Portable Device
Sensor Technology

By Geography

North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Italy
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
Japan
China
India
South Korea
Taiwan
Thailand
Indonesia
Others