Lithium Ion Battery Materials Market Report

Market Insights

“The global lithium-ion battery materials market is expected to grow from USD 42.55 billion in 2024 to USD 149.80 billion by 2030, at a healthy CAGR of 23.34% during 2025-2030.”

Market Dynamics

Introduction:

The lithium-ion battery materials market is the industry that manufactures, supplies, and develops raw materials and components for use in the production of lithium-ion batteries. The batteries drive a variety of applications such as electric vehicles (EVs), consumer devices, energy storage systems, and industrial equipment. Lithium-ion batteries are ideal for electric vehicles, renewable energy storage equipment, and portable electronic devices such as laptops and smartphones, because of their features such as long cycle life, lightweight, and high energy density. The growth of this market is mainly driven by the rising adoption of electric vehicles worldwide, strong government support, and growing demand for consumer electronics.

Market Drivers:

Rising Adoption of Electric Vehicles

Lithium-ion batteries are commonly used in electric vehicles, and with the growing demand for electric vehicles, the need for more efficient and advanced batteries will rise. According to a forecast by the IEA, the stock of EVs (excluding 2/3 wheelers) across the world will reach around 250 million by 2030, and 525 million by 2035, as a result, more than one in four vehicles on the road will be electric by 2035. Also, on average, the EV stock is projected to grow by 23% annually from 2023 to 2035. To meet this demand, the production of electric vehicles will increase significantly, driving upwards the demand for lithium-ion batteries. Consequently, this will result in high growth of the lithium-ion battery materials market.

Growing Demand for Consumer Electronics

Lithium-ion batteries are applied in a wide range of consumer electronics like smartphones, laptops, fitness bands, smart watches, bluetooth headsets, etc. The batteries are small yet have immense energy capacity, and can be designed to fit within the device easily. The consumer electronics market is anticipated to be driven by technological advancements and the gaming industry's explosive growth. The market is expected to increase as a result of the rising demand for batteries in digital cameras, tablets, smart electronic wearables, laptops, and smartphones. Furthermore, the use of lithium-ion batteries is anticipated to rise due to the growing dependence on mobile phones and portable power chargers, which in turn will drive the growth of this market.

Market Challenges:

Fluctuating raw material prices

The price of raw materials like lithium utilized to manufacture lithium-ion batteries may vary widely based on supply-demand mismatches, geopolitical conflicts, or natural disasters.  This may influence the demand for lithium-ion battery materials and the profitability of lithium-ion battery manufacturers. Higher prices may be caused by a shortage of supply or a surge in demand, while prices may decrease due to an oversupply or decline in demand. Geopolitical situations like tariffs and trade wars also affect raw material prices. As a result, fluctuations in raw materials prices directly impact the cost structure of lithium-ion batteries, which in turn affects the pricing of end-use products.

Market Opportunities:

Increasing Adoption of Lithium-Ion Batteries, Fuelled by Falling Prices

According to Bloomberg NEF, there is a significant decrease in the battery prices, wherein it was around USD 139 per kWh in 2023 and reached USD 115 per kWh in 2024, and is projected to further decline by USD 3 per kWh by 2025. The declining prices of lithium-ion batteries over time have driven upwards the demand for these batteries. The technological advancements led to improvements and better manufacturing processes, resulting in affordability for both consumers and manufacturers. Further, this trend is driving the transition to electric vehicles and, in turn, creating an opportunity for the lithium-ion battery materials market.

Recent Market Developments:

• In June 2024, BASF SE and WHW Recycling GmbH entered into a pact to recycle cathode and anode waste materials from battery cell manufacturing for electric vehicles. Both companies aim to recover valuable raw materials and reintroduce them to different value streams for further refinement. WHW Recycling is a specialist in the recycling of electrode foams and will treat the waste in its two new separation plants in Baudenbach, Germany. BASF will further process the resulting impure cathode active material, and the recovered battery-grade minerals can be reused as raw materials for the production of cathode active material. 

• In March 2024, Sumitomo Metal Mining Co., Ltd. in March 2024 announced that it will build recycling facilities at its Toyo Smelter & Refinery and Niihama Nickel Refinery in Ehime Prefecture, Japan. The move is part of the company's efforts to increase its recycling capacity and promote a more sustainable and circular economy.

Market Segments' Analysis

Market Segments' Analysis

By Application Type

“Electric vehicles segment is projected to have the highest growth rate during the forecast period.”

By application type, the lithium-ion battery materials market is divided into portable devices, electric vehicles, industrial, and other applications. The electric vehicles segment is projected to have the highest growth rate during the forecast period, driven by the growing adoption of electric vehicles worldwide and increasing government initiatives promoting electric vehicles. Lithium-ion batteries are lightweight, compact, and have a large energy storage capacity. They are also simple to charge and discharge several times, which makes them ideal for electric vehicles. Moreover, supportive government policies, such as those that offer incentives for purchasing EVs and others that impose stringent emission standards, also contribute to the growth of EV adoption.

By Battery Chemistry Type

“Lithium nickel manganese cobalt segment is expected to experience higher growth in the coming years.”

In terms of battery chemistry, the lithium-ion battery materials market is segmented into lithium nickel manganese cobalt, lithium iron phosphate, lithium manganese oxide, lithium nickel cobalt aluminium oxide, and lithium cobalt oxide. The lithium nickel manganese cobalt segment is projected to experience higher growth during the forecast period, due to their superior balance of high energy density, power output, safety, and cost-effectiveness. Batteries consisting of such materials are most suitable for extensive applications such as electric vehicles, portable electronics, power tools, and energy storage systems.

Regional Analysis

“Asia-Pacific holds the largest market share and is expected to be the fastest-growing region over the forecasted period.”

In terms of region, the lithium-ion battery materials market is segmented into the North American region, the European region, the Asia-Pacific region, and the rest of the world. The Asia-Pacific region holds the largest share in the market and is expected to be the fastest-growing region over the forecast period, driven by the rapid industrialization, government initiatives promoting electric vehicle adoption, dominance in electric vehicle production, and a robust consumer electronics industry. Government initiatives like offering electric vehicle incentives and imposing strict emission regulations also encourage the use of electric vehicles, which fuels the market expansion for lithium-ion battery materials. Additionally, the abundance of essential raw materials is also one of the factors that sustains APAC’s leading position in the lithium-ion battery materials market.

Key Players

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the Lithium-ion Battery Materials Market -  

• Umicore
• Sumitomo Metal Mining Co. Ltd.
• BASF SE
• POSCO Future M
• Tanaka Chemical Corporation
• L&F Co. Ltd.
• Toda Kogyo Corp.
• 3M
• Kureha Corporation
• NEI Corporation

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at sales@stratviewresearch.com

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The Lithium-ion Battery Materials Market is segmented into the following categories. 

Lithium-ion Battery Materials Market, by Type

• Electromechanical Relays (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Solid State Relays (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Lithium-ion Battery Materials Market, by Materials Type

• Anode Materials (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Cathode Materials (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Electrolyte materials (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Other Materials (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Lithium-ion Battery Materials Market, by Application Type

• Portable Devices (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Electric Vehicles (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Other Applications (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Lithium-ion Battery Materials Market, by Battery Chemistry Type

• Lithium Nickel Manganese Cobalt (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Lithium Iron Phosphate (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Lithium Manganese Oxide (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Lithium Nickel Cobalt Aluminium Oxide (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Lithium Cobalt Oxide (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Lithium-ion Battery Materials Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Lithium-ion Battery Materials market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com