Strict Emission Standards and Rising EV Sales to Fuel Application of Li-ion Battery Materials Globally

September 24, 2020

Frost & Sullivan’s recent analysis, Global Li-ion Battery Materials Market, Forecast to 2026, estimates that the global market for Li-ion battery materials will register a robust double-digit growth rate by 2026. The rising sales of electric vehicles (EVs) have resulted in an unprecedented demand for batteries and battery materials. While the market is making significant strides toward developing alternatives to Li-ion batteries for EVs, wide-scale commercial adoption is expected to commence only by the second half of the decade. With Li-ion expected to remain the battery technology of choice, the Li-ion battery materials market is forecast to grow at a compound annual growth rate (CAGR) of 13.0%, reaching $36.56 billion by 2026 from $15.49 billion in 2019.

“Ever-tightening emission standards, coupled with government policies incentivizing EV production, are increasingly driving multi-billion dollar investments toward automotive electrification infrastructure, especially in Europe and APAC. This is creating significant growth avenues for battery materials market participants,” said Gautam Rashingkar, Industry Analyst, Chemicals, Materials, and Nutrition. “The quest toward packing in high-energy densities to facilitate maximum possible driving ranges, while focusing on reducing overall battery costs, continues to be the key factor driving development, adoption, and wide-scale use of specific battery materials.”

Rashingkar added the ever-increasing push for high-energy-density batteries is expected to impact the selection and use of individual battery materials, and there is a growing preference for high-nickel-content cathode materials, partial replacement of graphite with silicon composites in anodes, and an increasing demand for thinner, high-thermal-resistance separators. Also, battery manufacturers are increasingly incorporating functional additives in electrolytes.

“Furthermore, with rapid expansion in battery manufacturing infrastructure, participants across the value chain are mandating ethical sourcing of raw materials, reduction in the use of critical materials, and developing processes and infrastructure for recycling and end-of-life management for Li-ion batteries, especially in Europe,” Rashingkar concluded.

For further revenue opportunities, battery material vendors should:

  •    –   Develop and promote the use of advanced cathode materials that balance energy density, safety, and stability to gain a significant edge over competitors.
  •    –   Strengthen footprint across key geographies in APAC and Europe, where significant battery production capacities are expected to be added.
  •    –   Build effective recycling processes and infrastructure in collaboration with original equipment manufacturers (OEMs) or recycling companies to ensure access to critical raw materials such as cobalt, nickel, and copper.
  •    –   Consider collaborations and/or acquisition of companies specializing in materials for advanced, next-generation batteries to secure their market position.


Global Li-ion Battery Materials Market, Forecast to 2026 
is part of Frost & Sullivan’s global Chemicals and Materials Growth Partnership Service program.

Source

Related Articles


Latest Articles

  • Maximizing Excel: Practical Use Cases for Preconstruction

    Maximizing Excel: Practical Use Cases for Preconstruction

    November 8, 2024 By Melvin Newman Excel is a powerful and flexible tool that can enhance efficiency in electrical construction estimating.  Spreadsheets, like those in Excel, consist of a grid of “cells” where each cell can hold various types of data. Originating from mainframe computers in the 1960s and later developed for Apple computers in… Read More…

  • The Non-Residential Sector Declines in All Three Components Despite Sustained Industrial Permit Level

    The Non-Residential Sector Declines in All Three Components Despite Sustained Industrial Permit Level

    November 4, 2024 The total value of building permits in Canada decreased by $858.1 million (-7.0%) to $11.5 billion in August, following a strong July during which construction intentions rose sharply (+20.8%). The residential and non-residential sectors contributed to the decrease in August. On a constant dollar basis (2017=100), the total value of building permits decreased 7.6% in… Read More…

  • A Slight Decrease in Residential Building Construction for August

    A Slight Decrease in Residential Building Construction for August

    November 4, 2024 Investment in building construction edged up 0.2% to $21.0 billion in August, after a 1.6% decrease in July. The residential sector edged down (-0.1%) to $14.6 billion, while the non-residential sector was up 1.0% to $6.4 billion. Year over year, investment in building construction grew 7.2% in August. On a constant dollar basis (2017=100), investment in building construction was… Read More…

  • When a Familiar Door Closes

    When a Familiar Door Closes

    November 4, 2024 By Keith Sones, seasoned utility industry executive Most of the articles I’ve written have been based on personal experiences, many of them occurring decades ago, which eventually translate into helpful life lessons. The years allow the events to marinate in a savoury stew of time and reflection, clarity never coming immediately, or even… Read More…


Changing Scene