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Battery materials include raw materials and chemicals that are used in the manufacturing of batteries. Major battery materials include electrolytes, anodes, cathodes, separators, electrical conductors, and corrosion inhibitors. Cathode materials are one of the most important components that determine the energy density and cost of lithium-ion batteries. Important cathode materials include lithium cobalt oxide (LCO), lithium manganese oxide (LMO), lithium nickel manganese cobalt oxide (NMC), lithium iron phosphate (LFP), and lithium nickel cobalt aluminum oxide (NCA). Anode materials mainly include graphite and lithium titanate. Electrolytes used in lithium-ion batteries are a combination of lithium salts such as lithium hexafluorophosphate (LiPF6) dissolved in an organic carbonate mixture.
The global Battery Materials Market is estimated to be valued at US$ 50.6 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.Market Key Trends: One of the key trends in the battery materials market is growing demand for advanced lithium-ion batteries from the electric vehicle industry. Stringent emission norms worldwide are encouraging automakers to shift towards electric vehicles. This is positively impacting the demand for advanced lithium-ion batteries which require innovative cathode and anode materials. Prominent battery and car manufacturers are actively investing in R&D to develop next-generation battery materials with higher energy density and lower costs. For instance, SQM S.A. and Livent Corporation are focusing on developing high nickel NMC materials to meet the rising performance requirements of batteries used in electric vehicles.
Porter’s Analysis - Threat of new entrants: The battery materials market requires huge capital investment in manufacturing facilities and R&D. Thus threat of new entrants is moderate.
- Bargaining power of buyers: Presence of many battery materials producers reduces bargaining power of buyers. However, rising environmental regulations are increasing bargaining power of buyers.
- Bargaining power of suppliers: Major players control global supply of key battery materials like lithium, cobalt, graphite etc. Thus suppliers enjoy high bargaining power.
- Threat of new substitutes: Continuous R&D in battery technology may lead to newer materials with better performance. However, limited substitutes exist currently.
- Competitive rivalry: Market dominated by few global players. Intense competition on pricing and new products is observed.
Key Takeaways
The global Battery Materials market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing adoption of electric vehicles. Rapid growth of EVs is driving the demand for battery materials like lithium, cobalt, graphite etc.
On a regional basis, Asia Pacific dominates the global battery materials market currently. Countries like China, Japan and South Korea are major producers as well as consumers. North America and Europe are other major markets for battery materials. With growing EV industry, these regions are expected to witness steady growth in the coming years.
Key players operating in the battery materials market are Albemarle, China Molybdenum Co. Ltd., Gan feng Lithium Co., Ltd., Glencore PLC, Livent Corporation, Norlisk Nickel, Sheritt International Corporation, SQM S.A., Targray Technology International Inc., Teck Resources, Tianqi Lithium, and Vale S.A. These companies are focusing on innovations to develop advanced materials with higher performance and longer battery life at lower costs. Partnerships and collaborations across supply chain are also observed intensify.
