Market Trends of South America Consumer Battery Industry
This section covers the major market trends shaping the South America Consumer Battery Market according to our research experts:
Increasing Demand for Lithium-ion Batteries
- Advancements in technology and mass production or economies of scale have led to the significant fall in lithium-ion battery prices. Furthermore, it is forecasted that the lithium-ion batteries prices would keep decreasing, during the forecast period.
- The sale of consumer electronics, which use lithium-ion battery, has been increasing hand-in-hand with the region's economic growth, positively impacting the consumer battery market.
- Due to its high electrode potential, high charge, and power-to-weight ratio, lithium is among the critical components for battery electrolytes and electrodes.
- Additionally, lithium-ion batteries are rechargeable and have a high energy density. The demand for this type of batteries has been driven primarily by proliferation of personal technology products, including smartphones, tablets, and laptops.
- Moreover, countries in South America are emerging as developed countires, owing to economic growth and social development during the past ten years. The GDP growth rate in the region is expected to increase at a moderate pace during the forecast period, and when supported by the expected increase in demand of electronic devices due to increasing population, the consumer battery demand is also expected to go up.
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Chile to Provide Significant Market
- Lithium is one of the most abundant resources in South America. South America accounts for roughly 55 - 60 % of the global lithium resources. As of 2018, identified lithium resources in Chile was 8.4 million metric ton.
- On account of this, Chile government is taking efforts to promote and invite countries across the globe to mine these vast resources, to serve the increasing demand for lithium-ion based batteries.
- In 2019, Chile imported 14 times the exported value of primary lithium ion batteries. Hence, overall, the country faces a trade deficit, and the trade balance can be achieved by increasing the domestic production of lithium-ion batteries.
- With huge lithium resources, Chile is becoming a new hotspot for lithium-ion battery manufacturing, as making batteries here may prove more profitable than manufacturing it anywhere else in the world.
- Hence, with a rapid rise in demand for consumer batteries in the country and also across the globe, domestic and foreign companies have a tremendous opportunity for lithium-ion based battery manufacturing in Chile.
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