Electric Vehicle Battery Materials Market Size, Share, and Industry Analysis By Battery Type (Lithium-ion, Lead-acid, and Others), By Material (Anode, Cathode, Separator, Electrolyte, and Others), and Regional Forecast till 2032

The global electric vehicle battery materials market shows expansion due to higher sales of EVs and advances in lithium-ion batteries. Thanks to programs and policies from the government, the market is valued more highly. More top-notch materials like lithium, cobalt and nickel are being demanded which supports this trend. It was reported by the U.S. Geological Survey that the U.S. reached lithium production of 28,000 tons for EV batteries in 2023.

Electric Vehicle Battery Materials Market Driver

EV Adoption and Battery Innovation Propel Growth in Battery Materials Market

Increasing numbers of EVs sold are mainly due to lithium-ion batteries which are seen as both efficient and safe. As solid-state batteries can store more energy, they boost the use of certain special components. Group14 Technologies’ USD 200 million grant from the U.S. Department of Energy increases production within the country. The Geological Survey found that lithium production in the U.S. reached 28,000 tons in 2023 as the market continued to grow. Partnerships between automakers and battery companies such as Stellantis and CATL, are also pushing the industry forward. All these reasons are fueling the development of the EV battery materials industry.

Electric Vehicle Battery Materials Market Restraint

Supply Chain and Environmental Constraints Limit EV Battery Materials Growth

As the supply chain has little diversification in critical minerals, the market’s expansion is hindered. Such actions as China’s recently imposed export restriction on rare earth elements add additional difficulties to these problems. Worries about the harm to nature from mining and a lack of proper recycling setup stand in the way of moving forward. There were only four EV battery recycling facilities identified by the U.S. Environmental Protection Agency for 2023, so more is needed. Manufacturing issues and strict quality rules cause further problems for the industry. The limitations mentioned above prevent the battery market from reaching its true potential even though EV battery materials are requested more and more.

Electric Vehicle Battery Materials Market Opportunity

Emerging Chemistries and Infrastructure Investments Fuel EV Battery Recycling Boom

The EV battery recycling market is expected to increase, presenting many new chances. Batteries based on lithium-iron-phosphate (LFP) technology use less of the resources that are difficult to find, helping to make energy storage more sustainable. Last year, the European Union recycled 3,500 tons of lithium from electric vehicle batteries, signaling better results. The introduction of Benchmark's data with ICE futures on battery materials helps make the market more transparent. Building new recycling systems and creating environmentally safe alternatives give businesses good prospects and support global sustainability goals.

Segmentation

Key Insights

The report covers the following key insights:

• Key Industry Trends
• Regulatory Landscape and Government Initiatives
• Key Industry Developments
• Regional Market Dynamics

Analysis By Battery Type

By Battery Type, the Electric Vehicle Battery Materials Market is divided into Lithium-ion, Lead-acid & Others. 

Superior energy density and safety are the reasons lithium-ion batteries are most popular. Other battery styles, in addition to lead-acid, make up a minority of the market. The progress of the segment is made possible by ongoing developments, including solid-state batteries and more EVs being made. Government support such as grants through the U.S. Department of Energy, promote growth in demand.

Analysis By Material

By Material, the Electric Vehicle Battery Materials Market is divided into Anode, Cathode, Separator, Electrolyte & Others. 

There is growing demand for graphite used in anodes in the U.S. That's anticipated to apply 15,000 lots in 2023. Cathode materials have experienced speedy progress due to their part in battery performance. Due to progress in battery technology, market growth is being driven by the separator and electrolyte parts.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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EV battery materials are mainly produced in North America which is influenced by government benefits and local industry initiatives. The U.S. Department of Energy recognized 6 vegetation wherein lithium-ion batteries are made, considered one of which received USD 200 million from the department. Lithium manufacturing for EV batteries inside the U.S. In 2023 turned into expected at 28,000 heaps by means of the U.S. Geological Survey. According to Natural Resources Canada, Canada supplies 7,200 tons of cobalt as a significant amount. Building local supply chains and setting up recycling facilities, including four EPA-approved centers, has made North America a leading producer.

With European countries following tight limits on emissions and investing in gigafactories, the region is growing quickly. This deal demonstrates the area’s goal to build batteries nearby for electric vehicles. In 2023, Germany lithium production was 9,000 tons (Office) and France asked for over 2,500 tons of cobalt to make EV batteries (Ministry). The European Union’s figures indicate that it recycled 3,500 tons of lithium from used batteries. Three manufacturing plants in Spain and a large amount of research funding, about 150 million EUR, mean Europe is quickly building its EV battery materials sector.

According to the Ministry of Industry and Information Technology, Asia Pacific is the leader in battery materials, with China producing 400,000 tons in 2023. The Indonesian government provided 80,000 tons of nickel, according to Statistics Indonesia and Japan used 13,000 tons of graphite provided by the Statistics Bureau. 20 million units of lithium-ion batteries were produced in South Korea, according to Statistics Korea. The area is supported by ample raw materials, existing manufacturing businesses and help from the government. Asia Pacific continues to lead in EV battery materials production and new ideas thanks to China’s 6 million tons of lithium and India’s 25 material suppliers.

Key Players Covered

The report includes the profiles of the following key players:

• BASF SE (Germany)
• Mitsubishi Chemical Group (Japan)
• UBE Corporation (Japan)
• Umicore (Belgium)
• Sumitomo Chemical Co., Ltd. (Japan)
• NICHIA CORPORATION (Japan)
• ENTEK International LLC (U.S.)
• Arkema (France)
• KUREHA CORPORATION (Japan)
• Epsilon (U.S.)

Key Industry Developments

• In May 2023, Stellantis and CATL agreed to make investments €4.1 billion to make an LFP battery plant in Spain.
• In April 2023, The U.S. Department of Energy awarded Group14 Technologies a USD 200 million grant to develop its manufacturing in the United States.
• In March 2023, Benchmark Minerals and ICE started out providing futures for primary battery materials to support clearer pricing.