Battery Materials Market, By Battery Type (Lithium Ion, Lead Acid, Others), By End Use Industry (Automobile Industry, Household Appliances, Electronics Industry, Others), and By Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa)

Published In : Jul 2023

Code : CMI6030

Pages :140

Formats :

Excel and PDF

Industry : Advanced Materials

Market Challenges And Opportunities

Global Battery Materials Market Drivers:

Growing market of electric vehicle to propel battery materials market growth

Implementation of strict government regulations toward vehicles emission and environmental pollution is driving growth of the electric vehicle market. Worldwide, governments are taking initiatives in this decarbonization by providing incentives in the form of tax benefits to boost EV sales. For instance, electric vehicles in Austria are exempt from fuel consumption/pollution tax, ownership tax, and company car tax. All such factors are propelling demand for battery, thereby fuelling battery materials market growth.

Increasing demand for consumer electronic products to fuel market growth

The global consumer electronics market is expected to grow at a significant rate over the forecast period, due to ongoing technological developments in electronics and semiconductor products, creating demand for electronics among the masses. Moreover, increasing internet penetration and increasing population are other factor augmenting consumer electronic products demand.

Global Battery Materials Market Opportunities:

Growing investment on electrification of remote & rural area is expected to serve major growth opportunities. The need for electricity is expected to rise during the forecast period, mostly across China, Vietnam, India, and Brazil. The expected spike is attributed to rapid industrialization and urbanization. The emerging economies such as India, China, and Brazil are involved in the investment on electrification of remote and rural areas. This is projected to augment the demand for batteries for energy storage in these countries.

Increasing focus on improving the supply chain of battery materials is expected to offer significant market growth opportunities. For instance, in August 2019, a joint venture company named Khanij Bidesh India Ltd. (KABIL) was made with three major companies, National Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL) and Mineral Exploration Company Ltd. (MECL), in India. . It was formed to create a new supply chain of battery materials for the Indian battery industry.

Global Battery Materials Market Restraints:

Environmental concern associated with mining of batteries to hamper market growth

Growing battery waste and rising concern regarding its disposal are the key factors hindering growth of the market. Batteries are manufactured from materials such as nickel, lead, lithium, nickel metal hydride, cadmium, and mercury. These toxic chemicals and metals are need to be disposed and recycled properly as they are heavy toxic metals can pollute soil and water. Hence, improper disposal and recycling of battery materials is projected to hamper the market growth.

Risk of supply scarcity

According to the report from the UN Conference on Trade and Development, close to 50% of the cobalt reserves are in the Democratic Republic of Congo (DRC), 58% of lithium reserves are in Chile, and 80% of natural graphite are from the economies such as China, Brazil, and Turkey. The statistics shows a huge resource consolidation that act as a limitation in case of any political instability which could reduce the supply, hence, increasing the prices of raw material is expected to hamper the global battery materials market growth.