EV Battery Separator Market - Forecasts from 2024 to 2029

The global EV battery separator market is anticipated to register a compound annual growth rate (CAGR) of over 17.45% during the forecasted period (2024-2029).

A battery is made up of two electrodes: the anode and cathode, which are two thin strips that are placed opposite to each other and are separated by a spacer called a separator. The separator is leached with electrolyte in such a manner that when it is charged, the passage of ions from the cathode to the anode is encouraged by the electrolyte, while when it is discharged, this passage is discouraged. This kind of separator is an isolator with no electrical conductivity. In a battery, separators rank as an indispensable feature; they are barriers that hold apart negative and positive terminals while enabling the movement of lithium ions between both. In current Li-ion batteries, the separator containing electrolyte accounts for only 3% of the cell's volume.

Polyolefin is used as a separator in the publicly available lithium-ion batteries. It has good mechanical properties, high chemical resistance, and a comparatively affordable price. A polyolefin is an example of a polymer that is produced from the polymerization of olefin, particularly ethylene. While ethylene is an organic compound acquired from petrochemicals, polyolefin is produced through polyethylene, polypropylene, or both. The Li-ion separator must be permeable with pore sizes ranging from 30 to 100 nm (Nm stands for nano-meter).

Lithium-ion batteries, which stand as one of the most promising solutions in the rapidly growing electric car market, have captured the American automobile market in recent years. Electric automobiles have been projected to make up 40% or even more of the total consumer automobiles in the United States by 2030. Most of the innovation experienced in electric cars in the past fifteen years could be easily traced to improvements in lithium-ion batteries.

GLOBAL EV BATTERY SEPARATOR MARKET DRIVERS:

Global demand for electric drive vehicles (EDVs) is gradually increasing as more customers want fuel-efficient, high-performance, and low-emission automobiles. Lithium batteries have enabled the industry to expand and take on various forms, including hybrids, plug-ins, full battery electrics, and vehicles such as buses, taxis, and fleets. Celgard lithium-ion battery separators provide distinct benefits for safety and optimal combinations of energy and power performance in a wide range of EDV battery cell configurations. The company provides various separator solutions to meet the competing performance requirements of EDV systems, such as safety, chemical and dimensional stability, and cycle life.

Whereas Tekra provides Mylar and Melinex PET films, Kaladex PEN films from DuPont Teijin Films, and Teonex PEN films from Toyobo Film Solutions Limited in various thicknesses for lithium-ion battery separators and insulation in electric cars. These films are also ideal for flexible printed circuits, bus bars, capacitors, motor transformers, fuel cell cables, and wiring.

Another such example is SETELA, offered by Toray Industries. It is a highly functional and reliable battery separator film. It is often used as a separator for secondary lithium-ion batteries used in portable electrical and electronic accessories and electric cars. Alongside this, the GM (General Motors) and Microvast businesses announced intentions to establish a new separator factory in the United States in November 2022. The new plant and separator project was funded by a US$200 million grant from the United States Department of Energy's Battery Materials Processing and Manufacturing Initiative.

EVBs presently exclusively utilize Lithium-ion batteries, and the same trend is expected in the future. Further, proper life cycle management, such as repair and reuse, recycling, or disposal, is prioritized by manufacturers while developing and implementing LIBs. With the growth in battery demand, the EV battery separator market is anticipated to grow. As stated by the IEA, automotive lithium-ion (Li-ion) battery consumption climbed by around 65% to 550 GWh in 2022, up from roughly 330 GWh in 2021, owing mostly to an increase in electric passenger vehicle sales, with new registrations up 55% in 2022 compared to 2021.

Along with this, the battery demand for cars expanded by over 70% in China, and electric car sales increased by 80 % in 2022 than 2021, though the battery demand rise was partially compensated by a greater share of PHEVs. Battery consumption for automobiles in the United States rose by nearly 80% in 2022, when electric car sales only managed a rise of nearly 55%.  The global sales of BEV and PHEV are overtaking HEV, and because the battery capabilities of BEV and PHEV are increasing, so does their battery requirement.

GLOBAL EV BATTERY SEPARATOR MARKET SEGMENT ANALYSIS:

Based on product type, ceramic-coated separators are one of the fastest-growing segments.

Ceramic materials are very heat resistant, whilst adhesives provide stickiness to ensure the integrity of the coating and the overall composite separator structure. By enhancing thermal stability, these ceramic-coated separators can significantly improve lithium-ion battery safety by preventing short circuits at high temperatures. Ceramic-coated separators also exhibit excellent wetting and liquid retention properties with the electrolyte and positive/negative electrode materials, resulting in greatly improved battery performance and durability. Ube Maxell Kyoto, for instance, makes ceramic-coated separators. Coating the separator, a component of lithium-ion batteries, helps to improve battery properties. Ube Maxell Kyoto provides double-sided coating, adhesive function, and thickness variations based on the consumers’ specifications.

Ceramic-coated separators are predicted to develop the fastest in the EV battery market owing to their higher thermal stability and mechanical strength, which are critical for high-performance lithium-ion batteries in electric cars. The growing need for safer and more efficient battery technology fuels this expansion.

GLOBAL EV BATTERY SEPARATOR MARKET GEOGRAPHICAL OUTLOOK

Asia-Pacific's EV battery separator market is anticipated to grow significantly.

EV battery separators are estimated to be a massive market in the Asia Pacific region because the usage of electric cars in this area has risen rapidly, and so has the number of companies manufacturing them. In particular, China, Japan, and South Korea are expected to be the torchbearers since their governments have set up rules to guide this industry while investing heavily in battery research and promoting environmental conservation campaigns. Furthermore, the region's dominance in EV production increases demand for high-performance battery separators, which are crucial for improving battery efficiency and safety.

From the statistics provided by the Japan Automobile Dealers Association (JADA) and the Japan Mini Vehicle Association (Zenkeijikyo), it was determined that by the end of 2022, 58,813 Battery Electric Vehicles (BEV) were sold in Japan, with a 2.7-fold increase from 2021. The BEV ratio (BEVs as a percentage of passenger car sales) increased to 1.7% in 2022, surpassing 0.6% in 2021 and reaching the 1% mark for the first time. Sales of BEV would further increase in Japan as the country sets an enhanced goal of having 100% environmentally friendly vehicles by 2035, and customers consider the environmental and economic impacts of electric vehicles.

Nonetheless, per the IEA, about 95% of the lithium-ion phosphate batteries for electric LDVs (Light-Duty Vehicles) were sourced from China, and BYD holds the largest market share of 50%. Tesla contributed 15%, with its proportion of LFP batteries rising from 20% in 2021 to 30% in 2022. About 85% of cars incorporating LFP batteries are Tesla cars, and most were manufactured in China.

However, battery costs vary by area, with China having the lowest average price and the rest of Asia Pacific having the highest. This pricing disparity is caused by the fact that around 65% of battery cells and over 80% of cathodes are made in China. This dynamic environment highlights Asia Pacific's key role in defining the worldwide EV battery separator market, which is characterized by fierce rivalry and ongoing innovation to satisfy rising demand.

Global EV Battery Separator Market Key Developments:

• In April 2024, Asahi Kasei planned to build an integrated factory in Ontario, Canada, to manufacture and coat Hipore wet-process lithium-ion battery (LIB) separators. Asahi Kasei has reached a fundamental agreement with Honda Motor Co., Ltd. for this factory, and the two parties have discussed a joint investment.
• In January 2024, 24M revealed a game-changing new battery separator called 24M ImpervioTM, which promises to revolutionize battery safety for electric vehicles (EV), energy storage systems (ESS), and consumer applications. This proprietary technology enables unprecedented safety advancements for lithium-ion and lithium-metal batteries, preventing catastrophic fires and massive recalls caused by metallic dendrites, electrode misalignments, and lithium dendrites.
• In March 2023, ENTEK, the sole US-owned and US-based provider of wet-process lithium-ion battery separator materials, announced its intentions to establish operations in Indiana, investing $1.5 billion in a new Terre Haute manufacturing plant. The initiative, the company's greatest investment to date, supports the development of the electric vehicle sector in Indiana and across the United States.

The global EV battery separator market is segmented and analyzed as follows:

By Material Type

• Polyethylene (PE)
• Polypropylene (PP)
• Ceramic-Coated Separator
• Composite Separator
• Others

By End-Use Application

• Electric Vehicles (EVs)
• Hybrid Electric Vehicles (HEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Rest of South America
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Rest of the Middle East and Africa
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific