Rapid vehicle electrification to drive the global Li-ion battery materials market
Recent analysis by Frost&Sullivian shows that, from $18.75 billion by 2020, a compound annual growth rate of 15.6 per cent will reach a world market for Li-ion battery materials of $51,60 billion by 2027. (CAGR). Battery chemicals and technology developments, increased sales of electric vehicles, changing regulatory scenarios and increased consumer preferences for electrical vehicles are driving global market expansion.
Asia-Pacific (APAC) prevails and is still the region that generates the most revenues. China is responsible for the demand and supply of all the most important battery materials, representing more than 85% of the overall world supply of cathode materials, anode materials, electrolytes and separators. However, the Li-ion battery and materials capacity are predicted to expand aggressively in Europe. Nearly a third of the world's Li-ion battery is planned to be produced by 2027.
Gautam Rashingkar, Chemical, Materials & Foods Industry Analyst, Frost & Sullivan said "Government incentives and subsidies for Electricity, particularly in Europe, increasingly stringent legislation and legislation on CO2 emissions, and competitive product offerings continue to be the main drivers for global EV sales.." The push also involves shifting into higher-nickel cathode chemistries, the partial change of graphite with silicium composites in anodes, incorporation of functional additives in electrolytes, increased demand for smaller, high-thermal resistance separators, and the need to provide more safe ties for longer-haul vehicles and higher-energy density batteries. "
Added Rashingkar: "The cathode materials category will be a vital contributor to overall market growth characterised by the speedy advancement and implementation of chemistry to materialise advances in energy density. The top producers of original equipment (OEMs) are projected to adopt an optimum chemical combination that includes lower-cost LFP batteries, higher-energy NCM bacteria and low-cobalt, high-nickel NCM batteries, to assure security of supply and to balance in cost and range of driving."
Market participants should take advantage of the growing opportunities:
- Develop state-of-the-art battery chemicals made of lower cobalt and relatively higher nickel content, namely high-energy, power, longer lifetime, and better thermal stabilities in nickel-rich cathode materials.
- Enhance supply and presence in Europe by investment into sites in which large battery-making plants are scheduled to come online, particularly in Poland, Hungary, Finland and Germany.
- Work with a broad range of IP-preserved technology to generate highly specialised, particular requirements in a number of collaborations to form strategic licencing arrangements with key producers.
- In partnership with the recycling firms, the development of an efficient recycling process and infrastructure to ensure access to essential commodities such as cobalt, nickel and copper.
Global Li-ion Battery Materials Growth Chances is the latest addition to the research and analysis on Frost & Sullivan Chemicals, Materials & Foods available from the Frost & Sullivan Leadership Council, which assist organisations with the identification of continuous growth flows in a future that is unpredictable.