Electric Vehicle Battery Materials Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 26.78 Billion |
| Market Size (2029) | USD 50.08 Billion |
| CAGR (2024 - 2029) | 13.34 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Electric Vehicle Battery Materials Market Analysis
The Electric Vehicle Battery Materials Market size is estimated at USD 26.78 billion in 2024, and is expected to reach USD 50.08 billion by 2029, growing at a CAGR of 13.34% during the forecast period (2024-2029).
- Over the medium period, the growing adoption of electric vehicles and the decreasing price of lithium-ion batteries are expected to drive the market during the forecast period.
- On the other hand, the supply chain gap in battery materials created by the monopoly of some countries is expected to restrain market growth in the future.
- However, the ongoing research and advancement in different battery materials for more sustainable cathode and anode, as well as efficient electrolytes, may offer opportunities for market growth.
- Asia-Pacific dominates the market, owing to the growing application in the electric vehicle industry, which augments the demand for battery material.
Electric Vehicle Battery Materials Market Trends
Lithium-ion Battery is Expected to Have a Major Share
- Lithium-ion battery materials used in electric vehicles include batteries cathode include lithium-metal oxides (such as Li(NixMnyCoz)O2, LiMn2O4, and LiCoO2), olivines (such as LiFePO4), vanadium oxides, and rechargeable lithium oxides. The materials used in anodes include lithium-alloying materials, graphite, silicon, or intermetallics.
- The demand for lithium battery materials is increasing in electric vehicles owing to the decreasing price of lithium-ion battery packs and several advantages such as high energy density, relatively long cycle life, and efficiency.
- In 2023, the price of lithium-ion battery packs decreased by around 13% compared to the previous year to USD 139/kWh. In addition to these advantages, research and development are being conducted to manufacture more effective and efficient lithium battery materials for electric vehicles.
- For instance, in February 2024, scientists at the Incheon National University devised a method to enhance the stability and characteristics of lithium-ion battery separators. They achieved this by incorporating a layer of silicon dioxide and other functional molecules. Such developments will improve the functionality of lithium-ion separators in electric vehicle applications.
- Further, with the increasing demand for lithium-ion electric vehicles, several companies are investing in manufacturing lithium-ion electric vehicle batteries, and the demand for lithium-ion battery materials is expected to increase. For instance, Panasonic's automotive battery plant in De Soto, Kansas, is expected to increase production of the 2170 cylindrical lithium-ion batteries for electric vehicles by 2025. Such an aim depicts a positive environment for lithium battery materials in the future.
- Thus, owing to the factors mentioned above, such as the decreasing price of lithium-ion batteries and technological developments, the demand for lithium-ion battery materials is expected to be significant during the forecast period.
Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific is expected to dominate the electric vehicle battery materials market for electric vehicles, as the region accounts for the majority of battery demand and production, especially in China. China's battery production fulfills the majority of the demand for electric vehicle batteries.
- According to the International Energy Agency, in 2023, the demand for electric vehicle batteries in China accounted for 417 GWh, up from 314 GWh last year. Europe produced 185 GWh, and the United States produced 99 GWh in 2023. Thus, the increasing demand for electric vehicle batteries is leading China to produce more, and the demand for electric vehicle battery materials is expected to rise during the forecast period.
- Further, China is the world’s largest exporter of electric vehicle batteries, with around 12% of its electric vehicle batteries exported in 2023. The country has a more integrated and sustainable supply chain for manufacturing electric vehicle batteries due to the majority of battery materials being produced domestically.
- Moreover, as of 2023, China accounted for almost 90% of the world's cathode-active material manufacturing capacity and over 97% of anode-active material production. Korea holds a notable 9% share, with Japan following at 3%, making them the only significant players outside China in the cathode active material segment.
- The region is expected to grow significantly in the electric vehicle battery materials market due to the increasing investments and government support. For instance, in May 2024, China announced it would invest USD 845 million in developing next-generation battery technology that powers electric vehicles. Such investments will boost the demand for electric vehicle battery material during the forecast period.
- Thus, owing to the above-mentioned developments, Asia-Pacific is expected to dominate the market.
Electric Vehicle Battery Materials Industry Overview
The electric vehicle battery materials market is semi-fragmented. Some of the major players in the market (in no particular order) include Targray Technology International Inc., BASF SE, Mitsubishi Chemical Group Corporation, UBE Corporation, and Umicore.
Electric Vehicle Battery Materials Market Leaders
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Targray Technology International Inc.
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BASF SE
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Mitsubishi Chemical Group Corporation
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UBE Corporation
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Umicore SA
*Disclaimer: Major Players sorted in no particular order
Electric Vehicle Battery Materials Market News
- January 2024: 24M introduced a battery separator, the 24M ImpervioTM, to revolutionize battery safety in electric vehicles. This innovative technology marks a significant leap in safety for both lithium-ion and lithium-metal batteries.
- January 2024: Researchers at MIT developed a novel battery material poised to revolutionize electric vehicle power sources. This lithium-ion battery features an innovative organic material-based cathode, a departure from the conventional use of cobalt or nickel.
Electric Vehicle Battery Materials Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 The Growing Adoption of Electric Vehicles
4.5.1.2 Decreasing Price of Lithium-ion Batteries
4.5.2 Restraints
4.5.2.1 The Supply Chain Gap
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Investment Analysis
5. MARKET SEGMENTATION
5.1 Battery Type
5.1.1 Lithium-ion
5.1.2 Lead-acid
5.1.3 Other Battery Types
5.2 Material
5.2.1 Anode
5.2.2 Cathode
5.2.3 Separator
5.2.4 Electrolyte
5.2.5 Other Materials
5.3 Geography [Market Size and Demand Forecast till 2029 (for regions only)]
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 France
5.3.2.3 United Kingdom
5.3.2.4 Italy
5.3.2.5 Spain
5.3.2.6 NORDIC
5.3.2.7 Russia
5.3.2.8 Turkey
5.3.2.9 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Australia
5.3.3.4 Japan
5.3.3.5 South Korea
5.3.3.6 Malaysia
5.3.3.7 Thailand
5.3.3.8 Indonesia
5.3.3.9 Vietnam
5.3.3.10 Rest of Asia-Pacific
5.3.4 Middle East and Africa
5.3.4.1 Saudi Arabia
5.3.4.2 United Arab Emirates
5.3.4.3 Nigeria
5.3.4.4 Egypt
5.3.4.5 Qatar
5.3.4.6 South Africa
5.3.4.7 Rest of Middle East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Colombia
5.3.5.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Targray Technology International Inc.
6.3.2 BASF SE
6.3.3 Mitsubishi Chemical Group Corporation
6.3.4 UBE Corporation
6.3.5 Umicore
6.3.6 Sumitomo Chemical Co. Ltd
6.3.7 Nichia Corporation
6.3.8 ENTEK International LLC
6.3.9 Arkema SA
6.3.10 Kureha Corporation
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 The Increasing Research and Development of Other Battery Materials
Electric Vehicle Battery Materials Industry Segmentation
Electric vehicle (EV) battery materials are the specific substances and components used in the construction of batteries for powering electric vehicles. These materials determine electric vehicles' efficiency, range, longevity, and safety.
The electric vehicle battery materials market is segmented by battery type (lithium-ion, lead-acid, and other battery types), material (cathode, anode, electrolyte, separator, and other materials), and geography. The report also covers the market size and forecasts for the electric vehicle battery materials market across major regions. The report offers the market size in value terms (USD) for all the above-mentioned segments.
| Battery Type | |
| Lithium-ion | |
| Lead-acid | |
| Other Battery Types |
| Material | |
| Anode | |
| Cathode | |
| Separator | |
| Electrolyte | |
| Other Materials |
| Geography [Market Size and Demand Forecast till 2029 (for regions only)] | ||||||||||||
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Electric Vehicle Battery Materials Market Research FAQs
How big is the Electric Vehicle Battery Materials Market?
The Electric Vehicle Battery Materials Market size is expected to reach USD 26.78 billion in 2024 and grow at a CAGR of 13.34% to reach USD 50.08 billion by 2029.
What is the current Electric Vehicle Battery Materials Market size?
In 2024, the Electric Vehicle Battery Materials Market size is expected to reach USD 26.78 billion.
Who are the key players in Electric Vehicle Battery Materials Market?
Targray Technology International Inc., BASF SE, Mitsubishi Chemical Group Corporation, UBE Corporation and Umicore SA are the major companies operating in the Electric Vehicle Battery Materials Market.
Which is the fastest growing region in Electric Vehicle Battery Materials Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Electric Vehicle Battery Materials Market?
In 2024, the Asia Pacific accounts for the largest market share in Electric Vehicle Battery Materials Market.
What years does this Electric Vehicle Battery Materials Market cover, and what was the market size in 2023?
In 2023, the Electric Vehicle Battery Materials Market size was estimated at USD 23.21 billion. The report covers the Electric Vehicle Battery Materials Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Electric Vehicle Battery Materials Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Electric Vehicle Battery Materials Industry Report
Statistics for the 2024 Electric Vehicle Battery Materials market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Electric Vehicle Battery Materials analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
