CONSUMER BATTERY MARKET challenges and opportunities

One of the major challenges faced by the global consumer battery market is the high and volatile cost of raw materials used in battery manufacturing such as lithium, cobalt, and nickel. These raw materials accounts for nearly 50-60% of the total battery cost. With increasing demand for lithium-ion batteries for electric vehicles and smartphones, the prices of raw materials have skyrocketed in the past few years. Lithium prices have tripled from 2020 levels while cobalt prices have doubled in the same period. As majority of these raw materials like lithium and cobalt are imported from other countries like Australia, Chile, and Congo, their prices are susceptible to geopolitical tensions and supply disruptions. Battery manufacturers are finding it difficult to reduce battery costs and pass on the benefits to the end consumers due to rising raw material expenses. Unless new sources of these critical materials are explored or alternative battery chemistries are developed, high raw material prices pose a serious threat to the mass adoption of battery powered products.

Global Consumer Battery Market Opportunity - Advancements in Battery Technology

One of the major opportunities for the global consumer battery market is the significant advancements happening in battery technology. After dominating the market for decades, lithium-ion battery technology is now advancing to new promising chemistries like lithium-sulfur, solid-state, and lithium-metal batteries which promise to boost energy density significantly while reducing costs. Startups and large automotive companies are investing heavily in research and development of these next-generation battery technologies. Additionally, new cathode and anode materials are being developed which can store more energy than current graphite or NCM/NCA materials. Promising low-cost lithium alternatives like sodium-ion batteries are also in testing phases. Once commercialized at scale, these advanced battery technologies have the potential to address the issues of driving range and charging times for EVs while bringing down battery costs. This will accelerate the adoption of battery powered products and drive higher revenues for consumer battery market players.