Lithium-ion Battery Materials Market by Battery Chemistry (LFP, LCO, NMC, NCA, LMO), Material (Cathode, Anode, Electrolyte), Application (Portable Device, Electric Vehicle, Industrial), & Region (APAC, Europe, North America, ROW) - Global Forecast to 2028
Updated on : April 23, 2024
Lithium-Ion Battery Materials Market
The global lithium-ion battery materials market was valued at USD 34.2 billion in 2023 and is projected to reach USD 97.5 billion by 2028, growing at 23.3% cagr from 2023 to 2028. The growth in demand for lithium-ion batteries due to their energy storage and power supply capabilities in various sectors, including automotive and consumer electronics sector is contributing towards the growth of lithium-ion battery materials market.
Attractive Opportunities in the Lithium-Ion Battery Material Market
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Lithium-Ion Battery Materials Market Dynamics
Driver: Growth in the production of lithium-ion batteries
Lithium-ion batteries are a source of power for electric vehicles. The widespread use of battery EVs (BEVs) and plug-in hybrid EVs (PHEVs) has inevitably boosted the adoption of lithium-ion batteries and is expected to continue to do so in the future. EVs are perceived as the future of the automobile industry and transportation system; their increased adoption has eventually increased the demand for lithium-ion batteries across the globe which has led to an increase in demand for lithium-ion battery materials.
Restraint: Availability of substitute
Substitutes for lithium-ion batteries, including hydrogen fuel cells and sodium-ion batteries, are emerging as alternative energy storage solutions for various applications. Hydrogen fuel cells are electrochemical devices that convert hydrogen and oxygen into electricity and water, offering high energy density and zero emissions. They excel in long-lasting power needs, such as electric vehicles and industrial machinery, and their fast-refueling times and durability make them attractive. However, challenges include the lack of hydrogen infrastructure, along with production and maintenance costs.
Opportunity: Growing R&D to enhance efficiency and upgrade lithium-ion battery
Research & development is undertaken by various manufacturers to develop durable and safer lithium-ion batteries. As the world is moving toward adopting clean energy, there has been a significant increase in the R&D initiatives undertaken by battery manufacturers for developing different battery chemistries. As the market for electric vehicles is booming, many manufacturers are focusing on developing reliable batteries for electric vehicles and hence these manufacturers are investing heavily in R&D. Therefore, a growing number of R&D initiatives are expected to drive lithium-ion battery market which will enhance the demand for lithium-ion battery materials.
Challenge: Fluctuating raw material prices
The cost of raw materials, such as lithium, used to produce lithium-ion batteries can fluctuate significantly due to supply and demand imbalances, geopolitical tensions, or natural disasters. This can impact the profitability of lithium-ion battery manufacturers and result in demand for lithium-ion battery materials. Lithium-ion battery manufacturers often use hedging strategies such as forward contracts and options to lock in prices for future purchases to mitigate the impact of raw material price fluctuations. They also invest in R&D to find alternative raw materials and reduce dependency on specific materials. Thus, high fluctuation in raw material prices can drastically impact the demand for raw material.
Lithium-Ion Battery Materials Market Ecosystem
Prominent companies in this market include well-established, and financially stable manufacturers of lithium-ion battery materials. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include BASF SE (Germany), Umicore (Belgium), 3M (US), Sumitomo Metal Mining Co., Ltd. (Japan), Resonac Holding Corporation (Japan), and others.
Based on battery chemistry, the lithium nickel manganese cobalt oxide (NMC) segment is projected to register highest CAGR during forecast period
The Lithium Nickel Manganese Cobalt Oxide (NMC) segment is estimated to be the fastest-growing segment of the global lithium-ion battery material market in the forecast period. NMC offers high energy density, power density, cost-effectiveness, and safety. They are ideal for a wide range of applications, including electric vehicles, portable electronics, power tools, and energy storage systems. The demand for NMC batteries is expected to grow significantly in the coming years, driven by the growth of the electric vehicle market and the increasing adoption of renewable energy.
Based on material, the cathode material held the largest share of the global lithium-ion battery material market in 2022
The cathode material accounted for the largest share of the global lithium-ion battery material market in 2022. Their energy density, power density, cycle life, and safety. The demand for cathode materials is growing rapidly, driven by the growth of the electric vehicle market and the increasing adoption of renewable energy.
Based on application, the electric vehicle segment is estimated to account for the largest share in 2023 .
The electric vehicle segment is estimated to have the largest share of the global lithium-ion battery material market in 2023 in terms of value. Lithium-ion batteries can store a lot of energy in a small and lightweight package, they can be easily charged and discharged multiple number of times. This combination of features makes lithium-ion batteries ideal for electric vehicles, leading to an increase in demand for lithium-ion battery materials.
Based on region, Asia Pacific region is projected to be the largest region for lithium-ion battery material market during the forecast period
Asia-Pacific has been witnessing high growth in the lithium-ion battery material market and is projected to be the largest region from 2023 to 2028 due to its growing demand for electric vehicles (EVs), government support for EVs, abundant lithium resources, and growing production of lithium-ion batteries. Moreover, governments in Asia Pacific are offering subsidies and other incentives to promote the adoption of EVs.
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Lithium-Ion Battery Materials Market Players
BASF SE (Germany), Umicore (Belgium), 3M (US), Sumitomo Metal Mining Co., Ltd. (Japan), Resonac Holding Corporation (Japan), POSCO FUTURE M (South Korea), Tanaka Chemical Corporation (Japan), Toda Kogyo Corp. (Japan), LANDF CORP. (South Korea), JFE Chemical Corporation (Japan), SGL Carbon (Germany), NEI Corporation (US), KUREHA CORPORATION (Japan), BTR New Material Group Co., Ltd. (China), UBE Corporation (Japan), and others are among the major players leading the market through their innovative offerings, enhanced production capacities, and efficient distribution channels.
Lithium-Ion Battery Materials Market Report Scope
|
Report Metric |
Details |
|
Market Size Available for Years |
2018 to 2028 |
|
Base Year Considered |
2022 |
|
Forecast Period |
2023–2028 |
|
Forecast Units |
Value (USD Million/Billion), Volume (Kiloton) |
|
Segments Covered |
Battery chemistry, Material, Application, and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, Rest of World (South America, and Rest of World) |
|
Companies Covered |
BASF SE (Germany), Umicore (Belgium), 3M (US), Sumitomo Metal Mining Co., Ltd. (Japan), Resonac Holding Corporation (Japan), POSCO FUTURE M (South Korea), Tanaka Chemical Corporation (Japan), Toda Kogyo Corp. (Japan), LANDF CORP. (South Korea), JFE Chemical Corporation (Japan), SGL Carbon (Germany), NEI Corporation (US), KUREHA CORPORATION (Japan), BTR New Material Group Co., Ltd. (China), UBE Corporation (Japan), and others. |
This research report categorizes the lithium-ion battery materials market based on type, textile type, application, and region.
Based on battery chemistry, the lithium-ion battery materials market has been segmented as follows:
- Lithium Nickel Manganese Cobalt
- Lithium Iron Phosphate
- Power Cobalt Oxide
- Lithium Manganese Oxide
- Lithium Nickel Cobalt Aluminum Oxide
Based on material, the lithium-ion battery materials market has been segmented as follows:
- Cathode Material
- Anode Material
- Electrolyte Material
- Other Materials
Based on application, the lithium-ion battery materials market has been segmented as follows:
- Portable Devices
- Electric Vehicles
- Industrial
- Others
Based on the region, the lithium-ion battery materials market has been segmented as follows:
-
Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
-
Europe
- Germany
- France
- Uk
- Rest of Europe
-
North America
- US
- Canada
- Mexico
-
Rest of World
- South America
- Rest of World
Recent Developments
- In September 2023, BASF SE has partnered with Nanotech Energy to produce lithium-ion batteries in North America with locally recycled content and low CO2 footprint. The agreement will enable BASF SE in North America to provide cathode active materials produced with recycled metals with support from American Battery Technology Company.
- In June 2022, POSCO Chemical and Britishvolt Ltd. signed an initial agreement on the development and supply of battery components in Europe. Under this agreement, POSCO Future M will be supplying EV battery materials to Britishvolt, which is building a battery plant in northeast England.
Frequently Asked Questions (FAQ):
What is the key driver for the lithium-ion battery material market?
Investment from private players boosting research and development is the major driving factor for Lithium-ion battery material market.
Which region is expected to register the highest CAGR in the lithium-ion battery material market during forecast period?
The lithium-ion battery material market in Asia Pacific is estimated to register the highest CAGR during forecast period.
What is the major end use of Lithium-ion battery material?
The electric vehicles segment is the major end use of Lithium-ion battery material. It is projected to grow due to the rise in demand for electric vehicles.
Who are the major manufacturers of Lithium-ion battery material?
The key players operating in the market include BASF SE (Germany), Umicore (Belgium), 3M (US), Sumitomo Metal Mining Co., Ltd. (Japan), Resonac Holding Corporation (Japan), POSCO FUTURE M (South Korea), Tanaka Chemical Corporation (Japan), Toda Kogyo Corp. (Japan), LANDF CORP. (South Korea), JFE Chemical Corporation (Japan), SGL Carbon (Germany), NEI Corporation (US), KUREHA CORPORATION (Japan).
What is the total CAGR expected to record for the lithium-ion battery material market during 2023-2028?
The market is expected to record a CAGR of 23.3% from 2023-2028. .
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The study involved four major activities in estimating the current market size of lithium-ion battery materials. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizes with industry experts across the value chain of lithium-ion battery materials through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the size of the segments and sub-segments of the market.
Secondary Research
The research methodology used to estimate and forecast the access control market begins with capturing data on revenues of key vendors in the market through secondary research. BusinessWeek, Factiva, World Bank, and Industry Journals, such as Hoovers, Bloomberg BusinessWeek, Factiva, World Bank, and Industry Journals, were referred to for identifying and collecting information for this study. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; notifications by regulatory bodies; trade directories; and databases. Vendor offerings have also been taken into consideration to determine market segmentation.
Primary Research
The lithium-ion battery materials market comprises several stakeholders, such as such as raw material suppliers, technology support providers, lithium-ion battery materials manufacturers, and regulatory organizations in the supply chain. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary sources from the supply side included industry experts such as Chief Executive Officers (CEOs), vice presidents, marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the lithium-ion battery materials market. Primary sources from the demand side included directors, marketing heads, and purchase managers from various sourcing industries. Following is the breakdown of the primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the lithium-ion battery materials market. These methods were also used extensively to determine the size of various sub-segments in the market. The research methodology used to estimate the market size included the following:
- The key players were identified through extensive primary and secondary research.
- The value chain and market size of the lithium-ion battery materials market, in terms of value and volume, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.
Global Lithium-ion Battery Materials Market Size: Bottom-Up Approach
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Global Lithium-ion Battery Materials Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the oil & gas sector.
Market definition
Lithium-ion battery materials refer to the various components and substances used in the construction of lithium-ion batteries. These materials include the cathode and anode materials responsible for storing and releasing lithium ions, the separator that prevents electrical contact between them, the electrolyte that facilitates ion movement, and collector foils for electrical connections. These materials collectively enable the operation of lithium-ion batteries, which are widely used in electronic devices and electric vehicles due to their high energy density and rechargeable capabilities.
Key Stakeholders
- Raw material manufacturers
- Technology support providers
- Manufacturers of synthetic fuel
- Traders, distributors, and suppliers
- Regulatory Bodies and Government Agencies
- Research & Development (R&D) Institutions
- End-use Industries
- Consulting Firms, Trade Associations, and Industry Bodies
- Investment Banks and Private Equity Firms
Report Objectives:
- To analyze and forecast the market size of lithium-ion battery materials market in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, restraints, challenges, and opportunities) influencing the regional market
- To analyze and forecast the global lithium-ion battery materials market on the basis of battery chemistry, material, application, and region.
- To analyze the opportunities in the market for stakeholders and provide details of a competitive landscape for market leaders.
- To forecast the size of various market segments based on four major regions: North America, Europe, Asia Pacific, Rest of World (South America, and the Rest of world), along with their respective key countries.
- To track and analyze competitive developments, such as merger & acquisitions, partnerships, investments, collaborations, agreements and expansions in the market.
- To strategically profile the key players and comprehensively analyze their market shares and core competencies.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the lithium-ion battery materials market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Growth opportunities and latent adjacency in Lithium-ion Battery Materials Market