Battery materials are raw materials used in batteries that provide charge storage and generate electricity through redox reactions including lithium metal oxides, transition metal oxides, graphite, conductive carbons, electrolytes along with other additives and binders. Battery materials help in improving energy density, life cycle and safety of batteries. Rising demand for portable consumer electronics and electric vehicles is driving growth of the battery materials market.
The 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:
The key trend spurring growth of the battery materials market is increasing demand for lithium-ion batteries from consumer electronics and electric vehicles industry. Lithium-ion batteries have high energy density, long lifespan and low self-discharge rate as compared to lead-acid and nickel-cadmium batteries. As lithium-ion batteries are lightweight yet powerful source of energy, their adoption is rising across various end use applications such as smartphones, laptops, tablets and electric vehicles. As per data, sales of electric vehicles grew by around 41% in 2021 compared to previous year. Rising electric vehicle sales is augmenting consumption of lithium-ion batteries thereby propelling growth of battery materials market over the forecast period.
Porter’s Analysis
Threat of new entrants: The battery materials market requires high capital investments and has stringent environmental regulations limiting new companies from easily entering the market.
Bargaining power of buyers: Large battery manufacturers and OEMs have significant bargaining power over materials producers due to the consolidated nature of demand.
Bargaining power of suppliers: The market has few mining companies that supply raw materials giving them pricing leverage over battery material producers.
Threat of new substitutes: As energy storage technologies advance, substitute materials could emerge that provide performance advantages over existing chemistries.
Competitive rivalry: Established players fiercely compete on quality, costs and integrating further in the supply chain to protect market share in the consolidated market.
SWOT Analysis
Strength: Battery materials producers have longstanding supply relationships, production know-how and scale advantages to meet rising demand cost-effectively.
Weakness: Volatility in raw material costs, scope for further technology developments in materials, reliance on few mines for critical materials.
Opportunity: Rapid uptake of EVs and energy storage opens massive opportunities, new lithium applications boost volumes.
Threats: Geopolitical risks associated with materials supply, pricing pressures from battery majors, regulatory hurdles around mining operations.
