Battery Materials Market Size, Share, and Trends 2024 to 2034

Battery Materials Market Size and Growth 2024 to 2033

The global battery materials market size was valued at USD 56.19 billion in 2023 and it is expected to hit USD 98.75 billion by 2033 with a registered CAGR of 5.8% during the forecast period 2024 to 2033. 

Battery Materials Market Key Takeaways

• Asia Pacific region has accounted for 43.14% of revenue share in 2023.
• By battery type, the lithium-ion battery segment has accounted for 47% revenue share in 2023.
• The lead acid segment has captured 36% revenue share in 2023.
• By application, the electronics industry segment has generated a 46% market share in 2023.

Asia Pacific Battery Materials Market Size and Growth 2024 to 2033

The Asia Pacific battery materials market size was estimated at USD 24.24 billion in 2023 and is predicted to be worth around USD 43.94 billion by 2033, at a CAGR of 6.1% from 2024 to 2033.

Asia Pacific captured the highest market share in 2023. Asia Pacific is the largest manufacturer of electric vehicles and consumer electronics. The presence of huge number of manufacturing facilities of various industrial, electronics, and automotive products in the region makes it the largest consumer of the battery materials. The rising government initiatives to boost industrialization have made Asia Pacific the manufacturing hub of the world. China is the largest producer and consumer of electric vehicles as China has abundant supply of lithium-ion. The presence of cheap factors pf production and favorable government policies has significantly attracted huge FDIs and the presence of large number of manufacturing facilities led to the dominance of this region in the global battery materials market.

North America is expected to witness significant growth rate during the forecast period. This is mainly attributed to the extensively rising demand for the electric vehicles and advanced consumer electronics among the population. High consumer awareness regarding the sustainabilit5y and environment protection, strict government regulations pertaining to the emissions from vehicles, and high disposable income of the consumers has led to the rapid growth of the North America battery materials market.

Battery Materials Market Growth Factors

The demand for the battery materials is expected to grow at a significant rate during the forecast period owing to the rapidly growing demand for the electric vehicles across the globe. The rising government initiatives to reduce carbon footprint and reduce the emission of greenhouse gases to attain sustainability is fueling the adoption of the electric vehicles. The surging demand for the consumer electronics among the population and rising government efforts to make regulatory changes to boost the adoption of electric vehicles is the prominent factors that are significantly augmenting the growth of the global battery materials market. The rising preference for the rechargeable and lightweight batteries is playing a crucial role in the market growth. The rapidly boosting demand for the lightweight and rechargeable batteries is attributed to the rising adoption of the consumer electronics such as laptops, desktops, and smartphones, which extensively needs the lightweight batteries. The rising trend of miniaturization of the electronic gadgets is a major factor that boosts the demand for the lightweight batteries.

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. The rising awareness pertaining to the sustainably sourced battery materials, efficient disposal of wastes, and recycling of wastes are expected to boost the demand for the battery materials. The manufacturers 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. Furthermore, 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.

Battery Materials Market Scope

Material Insights

Based on the material, the NCM was the dominating segment in the global battery materials market in 2023. It is one of the most precious combination of metals that offers continuous discharge of 20 A at around 2,000mWh. The various superior properties such as specific power and high specific energy has led to the growth of this segment. The lithium-ion batteries along with the NMC are used in electric vehicles. Its low rate of self-heating makes it feasible for use in the electric vehicles. Therefore, the surging demand for the electric vehicles is expected to boost the growth of this segment in the forthcoming years.

Battery Type Insights

Based on the battery type, the lithium-ion batteries segment dominated the global battery materials market in 2023. 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. Moreover, 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 the various applications. The rising demand for the lithium-ion batteries in the automotive, industrial, and consumer electronics industries has led to the dominance of the segment in the global battery materials market.

The lead acid is expected to be the fastest-growing segment during the forecast period. This is attributed to the rising demand for the lead acid batteries due to its properties such as ease of purchase, high reliability, tolerance to overcharge, and higher ability to deliver high currents. It is considered safer and reliable than the lithium-ion batteries and hence is expected to gain a rapid traction in the forthcoming years.

Application Insights

Based on the application, the consumer electronics segment led the global battery materials market in 2023. The huge demand for a wide variety of consumer electronics among the global population has led to the growth of the consumer electronics segment. Changing lifestyle of the consumers, rising disposable income, technological advancements, and rising expenditure on the home improvement products are some of the major factors that are significantly boosting the demand for the various consumer electronic products across the globe. The rising adoption of the batteries in the consumer electronics and growing demands for various electronic devices is expected to boost the growth of this segment during the forecast period.

Automotive is expected to be the most opportunistic segment during the forecast period. The rising demand for the electric vehicles across the globe and extensive usage of batteries in the electric vehicles is the most prominent factor that drives the growth of this segment. The rising pollution levels and climate change issues have forced the government to switch to the more sustainable transport solutions. The rising reforms in the regulations to boost the adoption of the electric vehicles are expected to have a significant and positive impact on the growth of the market in the foreseeable future.

Battery Materials Market Recent Developments

• 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
• In June 2020, POSCO Chemicals accelerated its manufacturing capacity for the anode materials by completing the second construction of anode materials facility in Sejong, South Korea

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.

Battery Materials Market Companies

• Celgard
• Hitachi Chemicals
• Umicore
• GS Yuasa Corp.
• Coda Energy
• Panasonic Corporation
• Envia System Inc.
• Duracell International Inc.
• GP Batteries international Ltd.
• Ford Motor Company
• Toda Kogyo

Segments Covered in the Report

By Material

• Cathode
• Anode
• Electrolyte
• Separator

By Battery Type

• Lithium-ion
• Lead acid
• Others

By Application

• Automotive
• Consumer Electronics
• Industrial
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa