The Battery Materials Market Size was USD 33.71 Billion in 2023. The battery materials industry is projected to grow from USD 36.66 Billion in 2024 to USD 65.95 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.62% during the forecast period (2024 - 2032). The growing usage of consumer electronics like smartphones and laptops and cooperative research between miners and battery producers are the key market drivers enhancing the market growth. Demand for electric vehicles is anticipated to rise due to the creation of quick and advanced charging infrastructure and the growing necessity to minimize carbon emissions. As a result, the market for battery materials will unavoidably expand.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Market CAGR for battery materials is driven by the rising demand for Li-ion batteries. The growing emphasis on using recycled Li-ion battery materials is a significant market trend. For instance, Fortum, a producer of clean energy solutions, recycles more than 80% of Li-ion materials thanks to its revolutionary work in transforming the battery value chain for numerous industrial and electric vehicle applications. Nickel, cobalt, and manganese may be recovered from the battery for reuse in the manufacture of new batteries thanks to the company's industrial-scale and low-CO2 procedures. The hydrometallurgical recycling method uses a chemical precipitation process to extract rare materials and transfer them to battery producers for reuse to create new batteries. Therefore, it is predicted that the increasing emphasis on the recycling process will drive the market in the coming years.
The demand for electric vehicles is accelerating due to the automotive industry's continual improvements and rapid development. The demand for zero-emission electric vehicles has increased due to favorable government regulations on subsidies, tax rebates, and new car registration, as well as the growing concern of various government organizations toward a cleaner and greener environment. Sales of electric vehicles are projected to be driven by the rising demand for carbon emission reductions and the development of quick, high-tech charging stations, which will help the demand for the product. In addition, the commercial electric sector has expanded due to the growing use of electric buses, particularly in China and India. Most electric vehicle batteries are lithium-based and comprise a combination of nickel, manganese, cobalt, graphite, and other elements. Due to increased manufacturing volume and more efficient production processes created by the manufacturers, lithium-ion battery prices have significantly decreased. Thus, driving the battery materials market revenue.
September 2022- Advanced Battery Concepts developed an energy-releasing battery system to ensure responsible battery use. Its products are designed with re-manufacturability in mind so that the highest rates of proper recycling can be achieved.
The battery materials market segmentation, based on type, includes cathode, anode, electrolyte, separator and others. The cathode category dominated the market. In the upcoming years, it is projected that increased demand for electric vehicles, rising use of cathodes in energy storage systems, and industrialization will propel the market for these components. Furthermore, in 2022, the battery separator sector saw considerable growth. During the projected period, demand for separators will be driven by rising demand across several industries, including consumer electronics and automotive.
April 2022: ENTEK announced expansion plans in the United States to address the growing demand for lithium-ion battery separators. ENTEK expects to finish the first development phase by 2025, with continuing expansion until 2027, with a total production of 1.4 billion square meters and enough material for the separator to power about 1.4 billion EVs.
The battery materials market segmentation, based on battery type, includes lithium-ion, lead-acid, nickel metal hydride (NiMH), nickel-cadmium (ni-cd) and others. The lithium-ion segment is anticipated to dominate during the projection period due to the rising demand for electric vehicles. Because of its color memory effect, low self-discharge, and high energy density, it is utilized in portable electronic gadgets. During the projection period, the lead-acid segment is anticipated to experience considerable market revenue. The sector will develop due to the expansion of automotive manufacturing centers, particularly in Germany, the United Kingdom, Brazil, the United States, China, India, and Japan.
Figure 1: Battery Materials Market, by Battery Type, 2022 & 2032 (USD billion) 
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The battery materials market segmentation, based on application, includes portable devices, automotive, electronics items, power storages and others. In 2022, the electronic items category acquired a major market share. Consumers' changing lifestyles, increased disposable income, technical breakthroughs, and rising spending on home renovation items are key elements driving demand for diverse consumer electronic devices. The automotive sector is predicted to be the most suitable during the projected period. The most important element driving the growth of this market is the increasing demand for electric vehicles around the world and their widespread use of batteries.
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American battery materials area will dominate this market. This is primarily due to the population's steadily expanding demand for modern consumer goods and electric automobiles. As of December 2021, there were approximately 2.3 million electric vehicles in the country, with the bulk being based in California and the Northeast. The North American market for battery materials has expanded quickly due to a combination of factors, including severe government laws surrounding automobile emissions, high consumer disposable income, and strong consumer awareness of sustainability and environmental protection.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: BATTERY MATERIALS MARKET SHARE BY REGION 2022 (%) 
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe battery materials market accounts for the second-largest market share. By the end of 2021, around 5.6 million plug-in electric automobiles and light trucks were operating in Europe. Additionally, Germany's expanding electronics and automotive sectors may open up significant new growth prospects for the market for battery materials. Further, the German battery materials market held the largest market share, and the UK battery materials market was the fastest-growing market in the European region.
The Asia-Pacific Battery Materials Market is expected to grow at the fastest CAGR from 2023 to 2032. The majority of Indian businesses are making alliances with foreign businesses and establishing new manufacturing facilities to construct EV battery factories utilizing locally produced battery materials, which will fuel the expansion of the battery materials market in the area. With over 231 thousand units sold, two-wheelers were the most popular type of electric vehicle sold in India during the fiscal year 2022, according to Auto Punditz. Moreover, China’s battery materials market held the largest market share, and the Indian battery materials market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing largely in research and development to expand their product lines, which will help the battery materials market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To grow and endure in an increasingly competitive and challenging market environment, the battery materials industry must offer cost-effective items.
One of the most important business strategies manufacturers use in the battery materials industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. In recent years, the battery materials industry has offered some of the most significant advantages to medicine. Major players in the battery materials market, including DowDuPont (US), Mitsubishi Chemical Corporation (Japan), BASF SE (Germany), 3M (US), and others, are investing in research and development operations to improve market demand.
POSCO Chemical Co Ltd manufactures coal chemistry and carbon products. Its primary businesses include, among others, refractory manufacturing and sales, furnace construction and maintenance, lime business, environmental business, comprehensive chemicals, carbon materials, and secondary battery anode materials. In June 2020, POSCO Chemical boosted its anode material production capacity by completing the construction of a second anode material factory in Sejong. This is in response to increased demand for secondary battery material, which prompted the company to extend the anode production systems at the factory, which has a capacity of 44 KT per year.
Volkswagen is a major automobile manufacturer in the world. Volkswagen passenger cars, Audi, Bentley, Lamborghini, Porsche, SEAT, and Skoda, are among the automotive brands. MAN, Navistar, Scania, and Volkswagen are among the commercial vehicle manufacturers. The financial services division of the corporation offers dealer finance to support floor plans, consumer financing for vehicle purchases, leasing, banking, and other financial services. In September 2022, Volkswagen launched a $2.9 billion battery parts joint venture with Belgian materials business Umicore, making it the latest European carmaker to bring battery supplies closer to home as the automotive industry shifts to electric vehicles. While raw materials such as lithium, cobalt, nickel, and manganese will continue to be sourced ly, cathode manufacture for batteries will take place in Europe as part of the joint venture, most likely at Umicore's Poland plant.
In the year 2024, Chinese battery manufacturer CATL (Contemporary Amperex Technology Co. Limited) revealed an improved lithium iron phosphate (LFP) material that supports energy storage capacity and extends battery duration.
This announcement by BASF in October 2023 was about a partnership with Norilsk Nickel to produce high-purity nickel and cobalt materials for use in battery manufacture. In this way, the project intends to provide a stable supply of such critical materials for battery manufacturing and support EV expansion.
Funding: NEU Battery Materials has raised $3.7m in seed funding from Singapore government-backed investor Deep Tech and SGInnovate, according to information released on July 1st, 2023. As a result, cleaner forms of lithium-ion battery are now closer than ever before because it will help NEU Battery Materials meet global demand while promoting EU’s circular economy and decreasing reliance on critical imported metals.
On March 6th, 2023, it was announced that CATL would invest $5bn into a lithium mine based in Australia, making it one of the largest investments made by any company involved with lithium production worldwide.
Launch: In February 2023, Stratus Materials Inc. developed a suite of cathode active materials for light & medium electric vehicles etc., requiring equivalent performances. Electric Vehicle optimization has addressed all these points as per requirements, thus leading towards their popularity growth across the globe.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 33.71 billion |
| Market Size 2024 | USD 36.66 billion |
| Market Size 2032 | USD 65.95 billion |
| Compound Annual Growth Rate (CAGR) | 7.62% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Battery Type, and Application |
| Geographies Covered | Asia Pacific, North America, Europe, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | DowDuPont (US), Mitsubishi Chemical Corporation (Japan), BASF SE (Germany), and 3M (US). |
| Key Market Opportunities | Use of batteries in energy storage devices |
| Key Market Dynamics | Growth of HEVs, PHEVs, and EVs to accelerate demand for batteries |
Battery Material Market Highlights:
Frequently Asked Questions (FAQ) :
The battery materials market size was prized at USD 33.71 Billion in 2023.
The market is anticipated to expand at a CAGR of 7.62% from 2024 to 2032.
North America had the major share of the market
The key players in the market are DowDuPont (US), Mitsubishi Chemical Corporation (Japan), BASF SE (Germany), and 3M (US).
The cathode category dominated the market in 2023.
The lithium-ion battery had the largest share in the
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