SUSTAINABLE BATTERY MATERIALS MARKET, SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Sustainable Battery Materials Market, Size and Trends

Global sustainable battery materials market is estimated to be valued at USD 49.85 Bn in 2024 and is expected to reach USD 75.95 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.

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Global sustainable battery materials market is expected to witness strong growth over the forecast period due to factors  such as increasing demand for electric vehicles and government mandates and regulations requiring more sustainable materials in batteries to minimize environmental impact. Major automotive OEMs are actively focusing on developing batteries with sustainable materials to further reduce carbon footprint. Battery material manufacturers are also relentlessly working on identifying new sustainable alternatives to conventionally used materials. New product development and capacity expansion strategies adopted by market players are expected to further boost the adoption of sustainable battery materials. However, high initial investments and limited availability of raw materials can hamper the growth of the market during the forecast period.

Electric Vehicles Driving Demand

Rising adoption of electric vehicles across the globe can drive the market growth. As EVs are shifting from niche to mainstream market, an increasing number of auto manufacturers are committing huge investments to meet the surge in demand. These are aggressively launching new EV models and ramping up their production capacities. This rising EV production and sales boosts need for large volumes of sustainable battery materials like lithium, cobalt, graphite and others.  Most experts predict that EVs will dominate auto sales in the coming decade due to favorable government policies and regulations regarding emission norms. Various countries have announced plans to phase out internal combustion engine vehicles and switch to zero-emission EVs in the near future. This encourages more consumers to opt for electric cars, and is expected to scale up the battery materials demand manifolds. Battery chemistries are advancing quickly to boost vehicles' driving range on a single charge. The transition to newer battery chemistries can offer opportunities for alternative anode and cathode materials manufacturers. The electrification of transport sector is expected to boost consumption of sustainable battery materials.

The global transition towards sustainability and clean energy is driving significant growth in the battery materials market. With worldwide ambitions to curb greenhouse gas emissions and expand the use of renewable energy sources, batteries are seen as a key enabling technology to support these goals. Batteries allow surplus power from solar and wind farms to be stored and used when natural generation is low, and are powering more electric vehicles on the road which produce zero direct emissions.  Countries and corporations around the world have announced aggressive targets and investments in clean energy and electric transportation infrastructure. For example, the EU has committed to fitting 30 million zero-emission vehicles on European roads by 2030 through its ‘Fit for 55’ package. In the US, the Biden administration aims to make half of all new vehicles sold in 2030 zero-emissions, including battery electric, fuel cell and plug-in hybrid vehicles. To support these ambitious targets, battery material supply chains must rapidly scale up. Metals such as lithium, cobalt, nickel and manganese will be in high demand for battery cathodes. Other materials like graphite, separators and electrolytes will also see increased needs.