New Delhi:With the inherent attractiveness of technology coupled with government initiatives to reduce carbon footprint, the auto industry worldwide would see a decent penetration of electric vehicles in the coming years. This also signifies extensive usage of batteries in electric and hybrid vehicles apart from other industries such as consumer electronics.
Industry reports shows that automobile is the fastest growing segment with a CAGR of around 12% in the battery materials market
The global battery materials market size was estimated at USD 50.28 billion in 2021 and is predicted to surpass USD 82.3 billion by 2030, growing at a CAGR of 5.63% from 2022 to 2030, as per a latest research by Precedence Research.
According to the research, the rapid industrialization of the underdeveloped regions is expected to boost the demand for the various industrial machines and equipment that utilizes batteries for power is expected to drive the growth of the global battery materials market in the forthcoming years.
“The surging investments by the manufacturers in the processing, mining, and manufacturing of the battery materials is expected to boost the production of batteries to meet the rapidly surging demand for the batteries across the globe,” Precedence Research said.
It also noted that battery makers are increasingly adopting the certifications such as EU-Batteries Directive, DOT, and PHMSA to ensure safety and quality of the batteries to lure the customers in the market.
“The rising adoption of the technologies such as Nano-filtration system, solvent extraction method, and rotary kiln electric furnace method are increasingly being adopted by the manufacturers to improve the efficiency and performance of the battery materials based on the requirements,” it added.
As per the report, the lithium-ion batteries segment dominated the global battery materials market in 2021. “This growth is majorly attributed to the rising demand for the lithium-ion batteries owing to the rapid adoption of electric vehicles across the globe,” Precedence Research said.
Moreover, it also noted that the extensive utilization of the lithium-ion batteries in the portable electronic devices has significantly fostered the growth of this segment. The various properties of lithium ion batteries such as low self-discharge, tint memory effect, and high energy density has made it popular across various applications.
Another leading financier Deutsche Bank has forecasted that the global battery consumption will increase five-fold in the next 10 years and lithium-ion batteries alone will account for 97% of battery use in energy storage by 2025.
Besides, lead-acid batteries will also show decent growth due to its ease of purchase, high reliability, tolerance to overcharge, and higher ability to deliver high currents.
The various developmental strategies adopted by the key market players such as business expansion and agreement is expected to have a significant and positive impact on the global battery materials market in the forthcoming future. With increasing demand, this space is attracting eyeballs of chemical companies and major players are expanding their reach with collaborations and partnerships.
In May 2019, Umicore entered into a long-term agreement with Glencore for the supply of cobalt to the Umicore’s battery materials value chain. Similarly, POSCO Chemicals accelerated its manufacturing capacity for the anode materials by completing the second construction of anode materials facility in Sejong, South Korea in June 2020.