PUBLISHER: Allied Market Research | PRODUCT CODE: 1179621
PUBLISHER: Allied Market Research | PRODUCT CODE: 1179621
The global battery raw materials market size was valued at $47.5 billion in 2021, and projected to reach $87.1 billion by 2031, with a CAGR of 6.3% from 2022 to 2031.
Battery raw materials consist of all the materials extracted from metals for the production of batteries. They are mined from mineral ores or extracted from brines and consist of lithium, nickel, and cobalt among others. These metals are mined by major mining companies before being processed in to metal compounds and precursors. The end products are battery packs that are used in various end-use industries such as automotive, consumer electronics, and energy storage devices. The most common battery currently used is the Lithium-ion and lead acid battery. The above-mentioned batteries utilize major raw materials such as lithium, and lead. Furthermore, these batteries contain cobalt, nickel, and manganese to a certain extent.
Mining of metals has detrimental effects on the environment that could hamper the procurement of new mines in the future. This could mean a scarcity of the battery materials; thus, impacting the growth of the battery materials market. In addition, metals used in batteries such as Lithium and Nickel, are majorly concentrated in countries such as China, Australia, and Democratic Republic of the Congo (DRC). This creates a supply shortage risk, if any export restriction is brought into action. This is expected to hamper the global battery materials market during the forecast period. However, this also creates an opportunity for market growth. To ensure continuity of supply, countries will invest in the mining sector and increase the rate of extraction of critical minerals such as Lithium, Nickel, and Cobalt. In addition, developments in the electronic industry such as Internet of Things (IoT) and 5G network are projected to boost the consumption of batteries.
Europe also accounted for a significant share of the global market revenue in 2021. European countries have strict regulations toward the environment, which played a vital role in the development of lithium batteries as modern lithium-ion batteries use cobalt metal, which is harmful for the environment. The European Union has set targets toward carbon emission and on-going infrastructural development such as energy storage system solar farms, wind farms, and power transmission sector, as a power source for monitoring device in oil and gas pipelines are major users of lithium-ion batteries. The presence of European Space Agency and top aerospace companies such as Airbus, and Cobham in this region are fostering the demand for highly stable and low-cost batteries. In addition, this region is mostly known for its automotive industry and medical industry, as top companies across the globe are located here. On the other hand, the market in Asia Pacific is estimated to register the fastest growth rate over the forecast period.
The global battery raw materials market is segmented on the basis of type, material type, and region.
On the basis of type, it is segmented into lithium ion, lead acid, and others. Furthermore, lithium-ion segment is further classified into electric vehicles, consumer electronics, industrial, and others. Lead acid segment is bifurcated into automotive, industrial and others. On the basis of material type, the market is segmented into cathode, anode, electrolyte, separator, and others.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by North America, and Europe.
The major companies profiled in this report include Asahi Kasei Corporation, BASF SE, ECOPRO, Entek International, Johnson Matthey plc., LG Chem Ltd, NEI Corporation, Showa Denko K.K., Targray Technology International Inc., Toshiba Corporation, Hitachi Chemical Co. Ltd., 3M, Nichia Corporation, Valence Technology, Inc., Mitsubishi Chemical Corporation, Celgard, LLC, and Nippon Denko Co, Ltd. Rapid penetration of artificial intelligence and telecommunication technology in daily life has led to increase in the utilization of smart consumer electronics, which is expected to increase the demand for battery as it acts as power source. The above-mentioned factors will have positive impact on the demand for battery raw materials. Additional growth strategies such as expansion of storage capacities, acquisition, partnership and research & innovation in the optimization and improvement in efficiency of the battery have led to attain key developments in the global battery raw materials market trends.
Impact of COVID-19 on Global Battery Raw Materials Market
The global COVID-19 pandemic has a negative impact on the battery raw materials market. This market has experienced lower than anticipated demand across all regions compared to pre pandemic levels. The global market exhibited a decline in 2020 compared to 2019, due to shutdown of various industrial manufacturing facilities and close down of various power generation projects across the globe.
The outbreak of COVID-19 has adversely impacted the market growth due to shutdown of manufacturing industries and decline in utilization of consumer electronics such as portable gadgets. Furthermore, the initiatives taken by the government to curb the spread of pandemic such as lock down had a great impact over the material supply. However, during the second half of the pandemic, there was a sudden surge in the demand for consumer electronics such as laptops, smart phones and other gadgets that were used to do work online. The increase in concept of work from home led to increase in demand for portable electronic gadgets during the pandemic period. The government initiatives to develop renewable power generation have boosted the demand for batteries for the energy storage, which led to increase in demand for battery raw material market.
Key Benefits For Stakeholders
By Type
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