Li-ion battery market set to grow: Frost & Sullivan
SANTA CLARA, Calif. — A recent analysis from Frost & Sullivan finds that the global Li-ion battery materials market is projected to reach $51.60 billion by 2027 from $18.75 billion in 2020 at a 15.6 per cent compound annual growth rate (CAGR).
The advancements in battery chemistries and technologies, upsurge in electric vehicle (EV) sales, evolving regulatory scenario and increasing consumer preferences toward EVs are expediting market growth worldwide, the analysis said.
Asia-Pacific dominates the market and continues to be the highest revenue-generating region. China leads the demand and supply of all of the key battery materials, accounting for over 85 per cent of the total global supply of cathode materials, anode materials, electrolytes and separators.
However, Europe is expected to see aggressive expansion in its Li-ion battery and materials manufacturing capacity. It is slated to account for nearly a third of the global Li-ion battery manufacturing capacity by 2027, says the report.
The report says that to tap into the growth opportunities, market participants should:
- Develop advanced battery chemistries composed of lower cobalt content and higher quantities of relatively more abundant nickel, for example nickel-rich cathode materials characterized by higher energy density, power capability, longer lifecycle and improved thermal stability.
- Strengthen supply and footprint in Europe by investing in facilities, especially in Poland, Hungary, Finland, and Germany, where major battery manufacturing facilities are expected to come online.
- Form partnerships for strategic licensing agreements with manufacturers, enabling wider IP-protected technologies to develop customized requirements.
- Develop recycling processes and infrastructure in collaboration with OEMs by partnering with recycling companies to ensure access to raw materials.