PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1397113
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1397113
Battery Metals Market size was valued at USD 13,312 Million in 2022, expanding at a CAGR of 3.2% from 2023 to 2030.
Battery metals, which include nickel, lithium, cobalt, graphite, and manganese batteries, are raw materials used in the production of batteries. These battery metals are used in batteries designed for electronic devices, electric vehicles, and other uses. In lithium-ion batteries, cobalt is typically used as the cathode material. Nickel is used in battery-operated systems due to its high energy density and storage capacity.
The market for battery metals is primarily driven by the quick increase in the use of electric vehicles. The growing emphasis on sustainable transportation by governments and consumers is anticipated to drive up demand for electric vehicles, which will increase the need for battery metals. For instance, according to the International Energy Agency, Sales of BEVs rose by 60% in China in 2022 compared to 2021, reaching 4.4 million, while sales of PHEVs nearly quadrupled to 1.5 million. Sales of electric vehicles rose by almost 15% in Europe in 2022 compared to 2021, reaching 2.7 million vehicles. Prior years had faster sales growth: from 2017 to 2019, the average yearly increase was 40%, and in 2021 it reached over 65%. Sales of BEVs increased by 30% in 2022 over 2021 (as opposed to 65% in 2021 over 2020).
The Global Battery Metals Market is segmented based on Metals Type, Application, and Region.
Based on the metals type, the market is bifurcated into Cobalt, Lithium, Nickel and Others. The lithium segment is expected to hold the largest market share during the forecast period. The rise in the popularity of electric vehicles is the main factor driving the rising demand for lithium. For electric vehicles (EVs), lithium-ion batteries are the recommended energy storage option because of their high energy density, lightweight design, and extended cycle life. There will likely be a greater need for lithium as more automakers transition to electric vehicles.
Based on the application, the industry is segmented into Electric Vehicles (EVs), Starter, Lighting, and Ignition (SLI), Electronic Devices, Stationary Battery Energy Storage (BES) and Others. The Starter, Lighting, and Ignition (SLI) segment is expected to grow at a moderate rate during the forecast period. For many years, SLI has dominated the market for battery metals as the primary application area. In traditional cars, the engine is started and ignited by a SLI battery, which also supplies energy to the vehicle. since of its power density, it is necessary since starting an engine necessitates high currents for brief periods-roughly 300 amperes for a few seconds. This application category is anticipated to increase at the slowest pace throughout the projection period due to the replacement of conventional cars with electric ones and the resulting negative effects on the environment.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. The Asia Pacific is expected to dominate the market during the forecast period. China is the world's largest battery manufacturer, which accounts for its leading share of the market. China's ability to manufacture goods is due to its control over the supply chain. It has the greatest capability for producing chemicals from battery-grade raw materials (about 80.0% of global production), accounting for more than 20.0% of the world's supply of battery metals. On the other hand, Europe is expected to grow at a significant rate during the forecast period. The growth in the region is attributed to the growing investment by the market players in setting up manufacturing plants.
Battery metals are subject to intense competition in the market due to the existence of large producers in the sector. To increase their market share, manufacturers are using several strategies, including capacity expansion and mergers and acquisitions, which will help them reach new target markets. Investment firms are being enticed to invest in and purchase shares in businesses that are a component of the battery market's value chain by the market's expansion. The key players are Glencore International AG, Tianqi Lithium, Sumitomo Metal Mining Co., Ltd., Albemarle Corporation, Vale, Gan Feng Li Industrial Co., Ltd., SQM S.A., Norilsk Nickel, China Molybdenum Co., Ltd. And Umicore among others.
In November 2023, an agreement was reached between top producers of battery materials worldwide BASF and leading producers of electric car battery cells SK On to jointly assess the potential for collaboration in the global lithium-ion battery industry, with a focus on North America and Asia-Pacific. Together, the partnership's strong commercial and product development skills will enable the creation of lithium-ion battery materials that lead the industry.