Battery Raw Material Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for battery raw material is expected to grow at a CAGR more than 7% globally during the forecast period. Battery raw materials are those materials through which batteries are made of like cobalt, graphite, and lithium. The growing product application in the automotive and consumer electronics segment has been driving the market growth.

However, the stringent safety regulations for batteries through storage and transportation are likely to hinder the expansion of the studied market. The unfavorable conditions arising due to the COVID-19 outbreak is expected to hamper the production of batteries which is expected to hinder the market growth.

The rising research and development in vanadium flow technology which utilizes for energy storage in households are likely to deliver opportunities for the battery raw material market over the next five years.

Asia-Pacific region dominates the market across the world with the escalating consumption of batteries in automotive and consumer electronics from countries, such as China and India.

Key Market Trends

Automotive Segment to Dominate the Market

• Automotive segment stands to be the dominating segment owing to the extensive consumption of battery raw material in batteries in vehicles.
• Automotive manufacturers witnessing an increase in usage of batteries due to low self-heating rate of batteries makes it extremely useful in electric vehicles which in turn augment the demand for battery raw material.
• Initiatives beneath Clean Energy Ministerial (CEM) like electric vehicle initiative and shifting preference from fuel energy to battery energy due to CO2 emission regulations are likely to drive the consumption of battery raw material in near future.
• Asia-Pacific countries like China, Japan, South Korea and India have been registering strong growth in the utilization of battery raw material in the consumer electronics and automotive industry, which is expected to drive the market over the forecast period.
• China is currently one of the largest markets for the electric vehicle and has registered ~30 times faster growth than the electric vehicle market in 2018 when compared to 2017.
• The increasing adoption of electric vehicles is in line with the clean energy policy. In order to reduce the demand-supply gap, the government of China is planning to ease restriction on automakers importing cars into the country.
• All the aforementioned factors are expected to drive the battery raw material market during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region stands to be the largest and fastest-growing market for battery raw material. China, Japan and South Korea combines consumes majority of the battery raw material as these are the largest manufacturer od batteries across the globe.
• Factors, such as growing need for energy, high demand for battery energy systems and increasing battery consumers in countries like China, India and South Korea etc. are expected to propel the market growth.
• Factors such as low production cost, abundant raw material availability, and unique technology are expected to drive the battery raw material market.
• Increasing usage of lightweight and rechargeable batteries in consumer electronics products such as laptops, smartphones and other portable electronic devices is likely to provide thrust to growth of battery raw material market.
• The high demand for battery from industrial sectors powered by usage in telecom, railways, power, and other industrial applications is driving the battery raw materials market in the Asia-Pacific region.
• Valve regulated batteries which use gel-based electrolyte mixed with sulfuric acid finds application in security systems and emergency lighting systems owing to their lower maintenance is anticipated to drive the market.
• Hence, all such market trends are expected to drive the demand for battery raw material market in the region during the forecast period.

Competitive Landscape

The global battery raw material market is fragmented with the presence of a few large-sized players and a large number of small players operating. Some of the major companies are Umicore, Asahi Kasei Corporation, Johnson Matthey, Sumitomo Chemical Co., Ltd. and Mitsubishi Chemical Corporation amongst others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support