Battery Materials Market Report 2025

The battery materials market size has grown rapidly in recent years. It will grow from $63.54 billion in 2024 to $70.68 billion in 2025 at a compound annual growth rate (CAGR) of 11.2%. The growth in the historic period can be attributed to growth in portable electronics, advancements in energy storage, consumer demand for longer battery life, renewable energy integration, government initiatives and subsidies, demand for lightweight materials, research and development funding.

The battery materials market size is expected to see rapid growth in the next few years. It will grow to $107.25 billion in 2029 at a compound annual growth rate (CAGR) of 11%. The growth in the forecast period can be attributed to transition to solid-state batteries, advancements in lithium-sulfur batteries, demand for low-cost materials, expansion of energy storage systems, material innovations for high temperatures, global efforts for carbon neutrality. Major trends in the forecast period include cobalt reduction and alternative chemistries, advancements in anode materials, recycling of battery materials, emerging markets for energy storage, investments in raw material exploration and mining.

The growing adoption of electric vehicles is expected to significantly drive the expansion of the battery materials market in the future. Electric vehicles are powered by an electric motor rather than an internal combustion engine, utilizing a substantial traction battery pack. These battery materials are essential for providing high energy density, low self-discharge rates, minimal maintenance, and extended charge cycles for electric vehicles. For example, in March 2024, the International Energy Agency reported that new electric car registrations in the United States reached 1.4 million in 2023, marking a more than 40% increase compared to 2022. Thus, the rising adoption of electric vehicles is fueling the growth of the battery materials market.

The burgeoning demand for consumer electronics is poised to be a key driver for the battery materials market's growth moving forward. Consumer electronics encompass a broad range of electronic devices catering to individual everyday use for entertainment, communication, productivity, and convenience. These devices heavily rely on battery materials to enable wireless operation and deliver portable, reliable, and energy-efficient power sources. Noteworthy is LG's annual financial report in January 2023, indicating unprecedented revenue growth, exceeding $60 billion for the first time in company history in 2022. The sales increase of 12.9% from 2021, reaching approximately $52.7 billion, and the Home Appliance & Air Solution Company's record revenue of $22.5 billion in 2022, up by 10.3% from the previous year, underscore the surging demand for consumer electronics, thereby propelling the battery materials market growth.

Technological advancements have become a major trend in the battery materials market, with companies developing new technologies to maintain their competitive edge. For example, in May 2023, Cabot Corporation, a U.S.-based materials manufacturer, introduced ENTERA Aerogel Particles for thermal barriers in lithium-ion batteries. This innovative material is designed to enhance battery performance by addressing key challenges such as thermal management and safety. The launch of advanced materials like ENTERA aligns with the industry's broader shift towards improved performance and sustainability in battery technologies. Cabot's focus on improving safety and efficiency reflects the growing demand for better lithium-ion battery solutions as electric mobility continues to rise worldwide.

Leading entities within the battery materials market are actively innovating to create tailored solutions, such as a series of cathode active materials specially crafted for light and medium electric vehicles. These innovative materials boast a manganese-rich and cobalt-free composition, positioning them as more cost-effective and environmentally sustainable alternatives to conventional cathode materials. Notably, in February 2023, Stratus Materials Inc., a US-based battery materials developer and manufacturer, introduced a set of these cathode active materials specifically engineered for light and medium electric vehicles. Distinguished by their heightened energy density, these materials possess the ability to store more energy per unit weight, a critical feature for electric vehicles requiring extended ranges and swift charging capabilities. Furthermore, their composition underscores a manganese-rich, cobalt-free nature, delivering superior energy density, prolonged cycle life, enhanced stability, cost efficiency, sustainability, and scalability.

In a significant move in May 2022, EV Metals, an Australia-based battery materials manufacturer and technology firm, successfully acquired Johnson Matthey's Battery Materials division for a total of $56.7 million. This strategic acquisition is anticipated to complement EV Metals' existing product portfolio and significantly bolster the company's capacity to supply high-purity chemicals and cathode active materials (CAM) within the market. Johnson Matthey, a UK-based pioneer in rechargeable lithium-ion batteries and battery materials, aligns with EV Metals' expansion strategy, fortifying its position as a prominent provider of advanced battery materials and technology solutions.

Major companies operating in the battery materials market are Asahi Kasei Corporation, BASF SE, Mitsubishi Chemical Holdings Corporation, Sumitomo Corporation, Umicore NV, Albemarle Corporation, Livent Corporation, Nichia Corporation, Toray Industries Inc., POSCO Holdings Inc., Showa Denko KK, Hitachi Chemical Company Limited, China Molybdenum Company Limited, Ganfeng Lithium Co. Ltd., MMC Norilsk Nickel PJSC, Ningbo Shanshan Company Limited, Saudi Basic Industries Corporation (SABIC), Ensinger Group, DIC Corporation, Celanese Corporation, Johnson Matthey PLC, Lanxess AG, Glencore PLC, Norilsk Nickel, Panasonic Holdings Corporation, NEC Corporation, LG Chem, Toshiba Corporation, Amperex Technology Limited, BAK Group.

Asia-Pacific was the largest region in the battery materials market in 2024. The regions covered in the battery materials market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the battery materials market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Battery materials encompass the fundamental elements present in cell electrodes, electrolytes, and separators, comprising diverse metals and chemical constituents.

The primary categories of battery materials include cathode, anode, electrolyte, separator, and other variants. A cathode denotes a metallic electrode facilitating the flow of current in a polarized electrical device. Battery varieties encompass lithium-ion, lead-acid, and additional types, finding application in the automotive sector, household appliances, the electronics industry, and various other fields.

The battery materials market research report is one of a series of new reports that provides battery materials market statistics, including the battery materials industry global market size, regional shares, competitors with a battery materials market share, detailed battery materials market segments, market trends and opportunities, and any further data you may need to thrive in the battery materials industry. This battery materials market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The battery materials market consists of sales of materials for primary batteries, and secondary batteries. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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