Lithium-ion Battery Binders Market

Updated on : April 03, 2024

Lithium-ion Battery Binders Market

The global lithium-ion battery binders market was valued at USD 1.6 billion in 2022 and is projected to reach USD 3.7 billion by 2027, growing at 18.7% cagr from 2022 to 2027. Increased usage of batteries in key industries such as electric vehicles and consumer electronics along with the growing government initiatives to enhance the sale of electric vehicles is expected to drive the market during the forecast period.

Global Lithium-ion Battery Binders Market Trends

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Lithium-ion Battery Binders Market Dynamics

Driver: Growing demand for the electric vehicle, consumer electronics, and utility sectors

In recent years, there has been tremendous growth in demand for batteries, and this is expected to grow at a significant pace for at least the next couple of years. Globally, there is a focus on minimizing the use of conventional sources of energy in various sectors such as automotive and power. This has led to an increase in the overall production of lithium-ion batteries. Lithium-ion batteries have better electrochemical performance than lead-acid, nickel-cadmium, and nickel-metal hydride batteries. These batteries have a long life and offer increased power, excellent efficiency, and low self-discharge. Various players in the market are working toward improving the performance of lithium-ion batteries, which has made them an attractive option for stationary energy storage applications. Thus, the increasing use of lithium-ion batteries in renewable energy storage and electric vehicle is expected to create huge growth opportunities for lithium-ion batteries, boosting the market for battery binders.

Restraints: Availability of binder free electrodes

Binder-free electrodes can be prepared in various ways, such as template-free and template-assisted

methods. Binders are generally electrochemically inactive and insulating, which reduces the overall energy density and leads to poor cycling stability. Therefore, binder-free electrodes provide a great opportunity for high performance in terms of both improved electronic conductivity and electrochemical reaction reversibility. There is R&D on binder-free electrodes as it can solve problems such as weak interaction and interface problems between the binder and the active material. Thus, growth in demand for binder-free electrodes is expected to restrain the growth of lithium-ion battery binders.

Opportunity: Advancement in battery binder technology

Several R&D activities are being carried out by various institutes and leading companies to improve the characteristics of lithium-ion battery binders. The purpose of these activities is to enhance the properties of binders to make them more effective and increase the battery capacity substantially. Some research activities are specifically aimed at new forms of battery binders to make them more effective, which adds to the overall efficiency of the battery. There is also a growing inclination toward aqueous base materials such as modified styrene butadiene copolymer (SBR) hydrophilic binders. Aqueous base materials can be used for both the anode as well as cathode electrodes and have advantages such as lower cost of manufacturing and pollution-free compared to the use of PVDF, which uses NMP solvents. Hence, the development of battery binders will create growth opportunities for battery binder manufacturers.

Challenge: Underdeveloped infrastructure for electric vehicles

The international sales of EVs are increasing year after year, and many countries are focused on meeting their targets for sustainable surroundings. However, there may be an extended way for the automotive industry to seriously shift from conventional to electric vehicles. The elements that restrict the expansion of the EV industry are its upfront cost, lack of charging infrastructure, range anxiety, and lengthy charging time. The challenge of range anxiety may be dealt with if enough public and personal charging centers are developed for EV charging. The present scenario is completely different as the charging infrastructure is limited to accommodate the changing needs of an EV. Thus, there is a need for supportive infrastructure for the growth of electric vehicles, which can lead to a growth in demand for lithium-ion battery binders.

Based on type, anode binders segment is the largest market during the forecast period

Based on type, lithium-ion battery binders are segmented into anode lithium-ion battery binders and cathode lithium-ion battery binders. Lithium-ion batteries have anode that has binders for better performance of the battery. There is a significant growth in demand for lithium-ion batteries in consumer electronics, electric vehicles, and other industries. This has created a boost in demand for lithium-ion batteries which has led to an increase in demand for lithium-ion battery binders.

Based on battery chemistry, lithium cobalt oxide segment is expected to account for the largest market share during the forecast period

The lithium cobalt oxide segment accounted for the largest segment, by battery chemistry during the forecast period, in terms of value. The lithium cobalt oxide (LCO) battery is one of the most popular types of lithium-ion batteries due to its high energy density. It is majorly used as a power source for smartphones, tablets, laptops, and digital cameras, among others. Lithium cobalt oxide batteries are mainly used in consumer electronics due to their high energy. A short life span (two to three years), low thermal stability, and limited power density make them unsuitable for most other applications. Growing usage of lithium cobalt oxide in consumer electronics is expected to fuel the demand for lithium-ion battery binders.

Based on material, styrene butadiene copolymer segment is expected to hold the highest CAGR during the forecast period

The styrene butadiene copolymer segment is expected to hold the highest CAGR, by material during the forecast period, in terms of value. Styrene butadiene copolymer is a hydrophilic binder consisting of styrene and butadiene in an approximate proportion. Compared to natural rubber, styrene butadiene copolymer has better processability; heat aging; abrasion resistance; and environment-friendliness, cleanliness, and pollution-free. Styrene butadiene copolymer is a water-based binder mainly used to prepare anode electrodes for lithium-ion batteries. There is no need for environmental control in the preparation of styrene butadiene copolymer hydrophilic binder, and no recovery equipment is needed, resulting in lower facility requirements and costs.

Based on end-use, automotive segment is the fastest growing market during the forecast period

The automotive sector is expected the fastest growing market, by end-use during the forecast period, in terms of value. In recent years, lithium-ion batteries have become the primary choice for use in electric and hybrid vehicles. They are lower in weight and require less maintenance than other automotive batteries. The demand for lithium-ion batteries in the automotive industry is increasing due to the rapid growth and development of electric vehicles. According to EV-Volumes, there has been a significant growth in demand for electric vehicles in the past few years. Thus, growth in demand for electric vehicles will enhance the market for lithium-ion battery binders.

Asia Pacific is the largest lithium-ion battery binders market in terms of value

Asia Pacific accounted for the largest share in terms of value, in 2021. There is a significant growth in demand for consumer electronics such as phones, tablets, and laptops along with a surge in demand for electric vehicles. Government initiatives in order to boost the demand for electric vehicles in major economies such as India, China, and South Korea has fueled the demand for lithium-ion battery, this has led to an increase in demand for lithium-ion battery binders. Data centers have also witnessed growth due to an increase in telecom sector. Data centers are shifting their preference from lead acid batteries to lithium-ion batteries which is expected to enhance the market for lithium-ion battery binders in the Asia Pacific region.

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Lithium-ion Battery Binders Market Players

Major companies in the lithium-ion battery binders market include Arkema (US), Solvay (Belgium), LG Chem (South Korea), ENEOS Corporation (Japan), and Zeon Corporation (Japan), among others. A total of 21 major players have been covered. These players have adopted joint ventures, expansions, agreements, partnerships, and contracts as the major strategies to consolidate their position in the market.

Lithium-ion Battery Binders Market Report Scope

This research report categorizes the Lithium-ion battery binders Industry based on material, battery type, end-use, and region.

Based on type, the lithium-ion battery binders market has been segmented as follows:

• Anode Binders
• Cathode Binders

Based on battery chemistry, the lithium-ion battery binders market has been segmented as follows:

• Lithium iron phosphate
• Lithium iron phosphate
• Lithium nickel manganese cobalt
• Lithium titanate oxide
• Others

Based on material, the lithium-ion battery binders market has been segmented as follows:

• Polyvinylidene fluoride
• Carboxymethyl cellulose
• Polymethyl Methacrylate
• Styrene Butadiene Copolymer
• Others

Based on end-use, the lithium-ion battery binders market has been segmented as follows:

• Automotive
• Consumer electronics
• Industrial
• Energy Storage
• Others

Based on Region, the lithium-ion battery binders market has been segmented as follows:

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

Recent Developments

• In December 2022, Fujian Blue Ocean & Black Stone Technology Co., Ltd. launched a new range of BATTBOND binders to serve customers outside China. These include both cathode and anode binders.
• In June 2022, BASF SE extended its series of Licity anode binders for lithium-ion battery manufacturing. The second-generation styrene butadiene rubber (SBR) binder Licity 2698 X F enables higher capacity, increased number of charge/discharge cycles, and reduced charging times.
• In June 2021, Arkema announced a new range of renewable PVDF grades for lithium-ion batteries, Kynar CTO PVDF grades, which will be produced first in Arkema's Pierre-Bénite factory in France.

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