Electric Vehicle Battery Materials - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Key Highlights

• Over the medium period, the growing adoption of electric vehicles and the decreasing price of lithium-ion batteries are expected to drive the market during the forecast period.
• On the other hand, the supply chain gap in battery materials created by the monopoly of some countries is expected to restrain market growth in the future.
• However, the ongoing research and advancement in different battery materials for more sustainable cathode and anode, as well as efficient electrolytes, may offer opportunities for market growth.
• Asia-Pacific dominates the market, owing to the growing application in the electric vehicle industry, which augments the demand for battery material.

Electric Vehicle Battery Materials Market Trends

Lithium-ion Battery is Expected to Have a Major Share

• Lithium-ion battery materials used in electric vehicles include batteries cathode include lithium-metal oxides (such as Li(NixMnyCoz)O2, LiMn2O4, and LiCoO2), olivines (such as LiFePO4), vanadium oxides, and rechargeable lithium oxides. The materials used in anodes include lithium-alloying materials, graphite, silicon, or intermetallics.
• The demand for lithium battery materials is increasing in electric vehicles owing to the decreasing price of lithium-ion battery packs and several advantages such as high energy density, relatively long cycle life, and efficiency.
• In 2023, the price of lithium-ion battery packs decreased by around 13% compared to the previous year to USD 139/kWh. In addition to these advantages, research and development are being conducted to manufacture more effective and efficient lithium battery materials for electric vehicles.
• For instance, in February 2024, scientists at the Incheon National University devised a method to enhance the stability and characteristics of lithium-ion battery separators. They achieved this by incorporating a layer of silicon dioxide and other functional molecules. Such developments will improve the functionality of lithium-ion separators in electric vehicle applications.
• Further, with the increasing demand for lithium-ion electric vehicles, several companies are investing in manufacturing lithium-ion electric vehicle batteries, and the demand for lithium-ion battery materials is expected to increase. For instance, Panasonic's automotive battery plant in De Soto, Kansas, is expected to increase production of the 2170 cylindrical lithium-ion batteries for electric vehicles by 2025. Such an aim depicts a positive environment for lithium battery materials in the future.
• Thus, owing to the factors mentioned above, such as the decreasing price of lithium-ion batteries and technological developments, the demand for lithium-ion battery materials is expected to be significant during the forecast period.

Asia-Pacific is Expected to Dominate the Market

• Asia-Pacific is expected to dominate the electric vehicle battery materials market for electric vehicles, as the region accounts for the majority of battery demand and production, especially in China. China's battery production fulfills the majority of the demand for electric vehicle batteries.
• According to the International Energy Agency, in 2023, the demand for electric vehicle batteries in China accounted for 417 GWh, up from 314 GWh last year. Europe produced 185 GWh, and the United States produced 99 GWh in 2023. Thus, the increasing demand for electric vehicle batteries is leading China to produce more, and the demand for electric vehicle battery materials is expected to rise during the forecast period.
• Further, China is the world’s largest exporter of electric vehicle batteries, with around 12% of its electric vehicle batteries exported in 2023. The country has a more integrated and sustainable supply chain for manufacturing electric vehicle batteries due to the majority of battery materials being produced domestically.
• Moreover, as of 2023, China accounted for almost 90% of the world's cathode-active material manufacturing capacity and over 97% of anode-active material production. Korea holds a notable 9% share, with Japan following at 3%, making them the only significant players outside China in the cathode active material segment.
• The region is expected to grow significantly in the electric vehicle battery materials market due to the increasing investments and government support. For instance, in May 2024, China announced it would invest USD 845 million in developing next-generation battery technology that powers electric vehicles. Such investments will boost the demand for electric vehicle battery material during the forecast period.
• Thus, owing to the above-mentioned developments, Asia-Pacific is expected to dominate the market.

Electric Vehicle Battery Materials Industry Overview

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