Battery Materials Market Size, Share & Industry Analysis, By Battery Type (Lithium-Ion, Lead Acid), By Material (Lithium-Ion {Cathode [LCO, NMC, NCA, LMO, LFP]), Anode [Artificial Graphite, Natural Graphite], Electrolyte, Separator), (Lead Acid {Cathode, Anode, Electrolyte, Separator}), By Application, and Regional Forecast, 2019-2026

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About 60% of the battery is made up of a combination of materials such as manganese (cathode), potassium, and zinc (anode). Secondary batteries are rechargeable and are obtained from nickel-hydrogen, lithium-ion, and nickel-cadmium sources. Rising demand for various battery types such as lithium-ion and lead-acid batteries will drive the market demand. Lithium-ion batteries are mostly used as it has high energy density and is significantly used in automotive, industrial, and consumer electronics applications. Improved compatibility and reliability of Li-ion batteries has led to the surge in the cathode battery materials demand.

MARKET TRENDS

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Lithium-Ion Battery Material Recycling is Fueling the Market Demand

Recycling of materials in lithium-ion batteries is a major market trend. Fortum, a clean-energy company offering and developing solutions for customers in heating, electricity, cooling, and improving resource efficiency. The company recycles over 80% of lithium-ion battery materials, where Fortum has revolutionized the lithium-ion battery value chain for industrial and electric vehicles use batteries. The company’s industrial-scale and low-CO2 process allow recovering the nickel, cobalt, and manganese from the battery for reuse and in producing new batteries. The hydrometallurgical recycling method involves a chemical precipitation procedure that allows rare minerals to be recovered and transported to the battery manufacturers for reuse in new batteries production.

Encouraging Environmentally Sound Management of Waste Lead Acid Batteries (ULAB) Will Fuel the Market Growth

About 80% of the global lead consumption is for the lead-acid batteries production which is primarily used in motorized vehicles, backup power supplies, and energy storage generated by wind turbines and PV cells. Growing motor vehicles demand with an increase in the usage of renewable energy sources may increase the overall lead-acid batteries market demand. They improve sustainability in applications such as GHG emissions in vehicles with start-stop engines along with cutting fuel consumption up to 10%. As it is environmentally sustainable battery technology, where a new lead-acid battery comprises over 80% recycled lead battery materials, creating it to be the lowest eco-friendly footprint energy storage technology.

MARKET DRIVERS

Increasing Electric Vehicles (EVs) Demand is Expected to Boost the Market.

Rapid evolution with the ongoing developments in the automotive industry shall witness the growth in the electric vehicles market. Favorable government norms in terms of subsidies, tax rebates, new car registration along with growing sensitivity of various government organizations towards a cleaner and greener environment which has increased the demand for zero-emission electric vehicles. Growing demand for a reduction in carbon emissions and introducing fast and advanced charging stations is likely to drive the electric vehicle market growth, which in turn shall bolster the battery material market demand. Besides, the rise in the adoption of electric buses mainly in India and China has contributed to the growth in the electric commercial sector. Most of the electric vehicle batteries are lithium-based and rely on a mix of manganese, cobalt, graphite, nickel, and other components. The lithium-ion battery prices have fallen steeply due to an increase in their production scale and manufacturers have developed more cost-effective methods.

Growing Consumer Electronics Demand is Expected to Aid Market Growth for Battery Materials

High production of electronics market is attributed to the increasing demand for computers, TVs, mobile phones, and other electronic devices. According to IBEF, global consumer electronics market demand amounts to USD 426.1 billion in 2020. Advancement in technology along with rapid development in the gaming industry is likely to drive the consumer electronics market demand. Increasing batteries demand in smartphones, laptops, smart electronic wearables, digital cameras, and tablets shall drive the industry growth. Companies are investing in resources and developing efficient and new battery technologies which in turn shall foster the overall electronics market demand. Increasing reliance on portable power and mobile phones, the use of Lithium-Ion technology is also increasing.

MARKET RESTRAINT

Poor Charging Infrastructure May Hinder the Market

Poor charging infrastructure is likely to delay the launch of electric vehicles, which in turn is expected to hamper the overall industry growth. The carmakers have ruled out plans to withdraw combustion engines in India. In 2017, Toyota's partnership with Suzuki to offer affordable hybrid and electric cars mainly for the Indian market. Also, the company mentioned unless there is a proper charging infrastructure in the place, it will be difficult to launch passenger electric vehicles in the Indian market. Renowned automakers and power companies are not investing in charging infrastructure which has led to the downfall of the sales of the electric vehicles and in turn hampering the overall battery materials market growth.

SEGMENTATION

By Battery Type Analysis

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Lithium-Ion Dominated the Global Battery Materials Market Size

Based on battery type, the battery materials market is segmented into lithium-ion, lead-acid, and others. The lithium-ion segment is expected to be the dominant segment during the forecast timeframe owing to the increasing usage of electric vehicles. It is used in electronic portable devices on account of its tint memory effect, low self-discharge, and high energy density. It has wide application usage in consumer electronics, automotive, industrial, and others. Most of the automobile manufacturers are focusing on electric vehicles used as government organizations in several countries have taken initiatives towards a green environment and lowering carbon emission.

Also, lithium-ion battery manufacturers are innovating, improving performance, and reducing the dependence on graphite and cobalt which in turn will reduce production cost and extend Li-ion battery lifespan. Lithium-ion batteries are composed of cathode, electrolyte, anode, and separator. Cathode materials include Lithium Cobalt Oxide, Lithium Nickel Manganese Oxide, Lithium Manganese Oxide, and Others. The development of materials in lithium-ion batteries is driven by the need for improved battery capacity, safety, lower cost, and improved capacity retention after battery recycling. Battery capacity and cost improvements are addressed through modification of electrode thickness and materials, while capacity retention and safety improvements are addressed by electrolytes modification through additives and entirely new electrolyte materials.

The lead-acid segment is expected to witness significant growth during the forecast timeframe. Expansion of vehicle manufacturing hubs mainly in Germany. UK, Brazil, the U.S., China, India, and Japan shall drive the market trends. Lead-acid batteries are composed of cathode, anode, separator, and electrolyte. High disposable income along with surge in the overall passenger car sales in China and India shall foster the overall market demand. Lead batteries are sustainable as they are recyclable and as per Battery Council International (BCI), 99% of all the lead batteries manufactured are recycled.

By Material Analysis

Cathode Material is Likely to Dominate the Battery Materials Market Size

Based on material, lithium-ion is segmented into cathode, anode, electrolyte, separator, and others. Further, the cathode material bifurcated into Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Manganese Oxide, Lithium Nickel Cobalt Aluminium Oxide, and Lithium Nickel Manganese Oxide. Anode material is further segmented into artificial graphite, natural graphite, and others. Cathode material may account for the major market share during the forecast timeframe. The primary active components of cathode materials are cobalt, manganese, and nickel. Today, cobalt is substituted partially by nickel mostly Lithium Nickel Manganese Oxide (NMC) and Nickel Cobalt Aluminium Oxide (NCA). Cathode materials require an extremely high purity level and must be free from unwanted metal impurities mainly sulfur, vanadium, and iron. The family of the battery includes varied products catering to different user needs for high energy density or high load capacity. NMC is used in the batteries of mobile phones, automotive, laptops, electrical storage systems, power tools, and tablets. It is usually lightweight and can serve lighter and slimmer smartphones and tablets.

Based on material, lead-acid is segmented into cathode, anode, electrolyte, separator, and others. Cathode material dominated the market in 2018 and may continue its dominance up to 2026. In a lead-acid battery, the anode is made of metallic lead, and the cathode is made of lead dioxide. Lead-acid batteries efficiencies vary depending on the factors such as temperature and duty cycle that are typically around 75% and 85% for DC to DC cycling.

By Application Analysis

Consumer Electronics May Hold a Major Share in the Li-Ion Battery Materials Market

Based on application, the lithium-ion is segmented into consumer electronics, automotive, industrial, and others. Increasing the adoption of lithium-ion batteries in consumer electronics applications is likely to drive overall market growth. Growing demand for smart electronic devices owing to increasing population and purchasing power parity with a change in lifestyle preference shall augment the industry demand. Also, governments across the world are focusing more on digitization, and promoting the proper utilization of electronic devices among the consumers is a key attribute for market growth. The requirement and demand for battery power for wireless devices is increasing exponentially, which has created a significant market opportunity for battery developers.

Based on the application, lead-acid is segmented into automotive, industrial, and others. Automotive applications account for a major market share during the forecast timeframe. The surge in automotive sales and production globally has led to a rise in vehicle electrification which is driving the market demand. High efficiency, low cost, high performance, tolerance to overcharging, durability, and reliability are the key attributes that prompt the buyers and the automotive industries to opt for lead-acid batteries.

REGIONAL ANALYSIS

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North America's battery materials market size was estimated at USD 8.4 billion in 2018 owing to the rapid adoption of electric vehicles with increasing consumer electronics sales in this region. The U.S. government is encouraging investors for renewable and electric vehicle industries which have resulted in the increasing demand for battery-based energy storage systems mainly for lithium-ion batteries, which will largely facilitate the growth in the region up to 2026.

Asia Pacific market size, led by India, Japan, China, and South Korea has accounted for the major market share during the forecast period. Rapid urbanization along with increasing consumer spending on electric vehicles is expected to foster regional growth trends. Most of the Indian companies are forming strategies with overseas companies and introducing new production plant to build an EV (electric vehicle) battery plant using indigenous battery materials.

The European market may witness substantial growth during the forecast period. In June 2018, over one million plug-in electric passenger cars are registered in Europe, making it the second-largest car seller in the world. Growing electronics and automotive industries in Germany may create lucrative opportunities in the industry for battery materials.

KEY INDUSTRY PLAYERS

Manufacturers Are investing in New Production Sites and Forming Alliances to Boost Market Share and Their Presence in the Battery Materials Business

In March 2019, Asahi Kasei has announced to enhance its manufacturing infrastructure for Li-ion battery (LIB) separator, which is expected to complete by 2021. Asahi Kasei, is a manufacturer of LIB separator manufacturer, supplying both dry and wet process separators with its Celgard and Hipore products which will expand the company’s business.

The global battery materials market share is competitive with major players including NICHIA Corporation, NEI Corporation, TCI Chemicals, Umicore, BASF SE, Asahi Kasei, and Hitachi Chemical. Most of the manufacturing companies, battery makers, and various research institutions are investing heavily in the technological advancements of these batteries which will create batteries with a long life cycle, high power density, environment friendly, high performance, and low cost. For instance, in February 2020, Dr. Hun-Gi Jung and his research team at the Center for Energy Storage Research of the Korea Institute of Science and Technology developed silicon anode materials which will increase the battery capacity as compared to graphite anode materials and enabling rapid charging up to 80% capacity in five minutes. Also, when these batteries are applied for electric vehicles, it's likely to double the driving range.

LIST OF KEY COMPANIES PROFILED:

• NICHIA CORPORATION


• NEI Corporation


• TCI Chemicals (India) Pvt. Ltd.


• Targray Technology International


• Mitsubishi Chemical Holdings


• Hitachi Chemical Co., Ltd.


• TORAY INDUSTRIES, INC.


• Shanghai Shanshan Tech Co., Ltd.


• Kureha Corporation


• BASF SE


• Asahi Kasei


• Umicore Cobalt & Specialty Materials (CSM)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• May 2019 – Glencore and Umicore entered into a partnership for cobalt hydroxide (cobalt) supply to Umicore’s battery materials value chain. This agreement was to help facilitate Umicore’s cobalt supply and expansion of the global battery materials value chain. Also, it will provide Glencore’s long-term cobalt raw materials market access which is in line with increasing Umicore’s cathode materials sales.


• December 2018 – Mitsubishi Chemical Corporation to upsurge its formulated electrolyte for Li-ion batteries (LIBs) production capacity at its Yokkaichi Plant to 16,000 tons per annum from 11,000 tons per annum. This production capacity will create business opportunities for electric vehicles mainly in Japan and overseas.

REPORT COVERAGE

The battery materials market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, battery types, and leading applications of the battery types. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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