New York , Nov. 30, 2023 (GLOBE NEWSWIRE) -- The global lithium-ion battery market size is expected to expand at 19% CAGR from 2023 to 2035. The market is anticipated to garner a revenue of USD 479 billion by the end of 2035, up from a revenue of USD 48 billion in the year 2022. The adoption of electric vehicles has been a major driver for the market. Governments around the world are promoting electric mobility to reduce carbon emissions and dependence on traditional fossil fuels. The increasing adoption of the lithium-ion battery industry in the renewable energy sector is boosting market growth. In 2021, the US was able to manufacture 44 GWh of lithium-ion batteries. Also, many countries are consuming lithium-ion batteries at a higher rate. As a result of its rapidly growing electronics and electric car industries, China is the world's biggest user of lithium.
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Lithium-ion batteries are crucial for storing energy generated from renewable sources such as solar and wind. These batteries help in maintaining a stable power supply by storing excess energy when production is high and releasing it during periods of high demand. The demand for lithium-ion batteries in consumer electronics like smartphones, laptops, and tablets continues to be robust. Advancements in technology have led to higher energy density and improved performance. Large-scale lithium-ion battery installations for energy storage are becoming increasingly common. These systems help utilities and grid operators manage fluctuations in energy production and demand.
Lithium-ion Battery Market: Key Takeaways
- Market in Asia Pacific to propel highest growth
- The lithium cobalt oxide segment to garner the highest growth
- Market in North America to grow at a highest rate
Growing Demand for Smartphones across the Globe to Boost Market Growth
Smartphones' demand for lithium-ion batteries has increased dramatically. According to smartphone suppliers, around 1.39 billion cell phones were sold globally in 2022. The growth can be accredited to the prolonged shelf life and improved efficiency. The ambitious "zero carbon" goals established by governing bodies throughout the world have increased demand for EVs and, as a result, for lithium-ion batteries, a vital part of electric car strength systems. According to the UN, more than 70 nations have established a net-zero target, which accounts for nearly 76% of global emissions and includes the three greatest polluters: China, the United States, and the European Union. Effective electricity storage solutions are required due to the expansion of renewable electricity sources like solar and wind energy. In order to maintain grid stability, lithium-ion batteries are crucial for storing the electricity produced by these sources. Ongoing research and development efforts are focused on reducing the cost of lithium-ion batteries, making them more accessible for a broader range of applications. Supportive government policies and incentives for electric vehicles and renewable energy projects have played a crucial role in the growth of the lithium-ion battery market.
Lithium-ion Battery Industry: Regional Overview
The global lithium-ion battery market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Expanding Electric Vehicle Adoption to Drive the Market Growth in Asia Pacific Region
The lithium-ion battery market in Asia Pacific region is estimated to garner the largest revenue by the end of 2035. The rapid adoption of electric vehicles (EVs) is a significant driver of the lithium-ion battery industry in the Asia Pacific region. Governments across the region are implementing stringent emission standards and offering incentives to promote the use of electric vehicles. As a result, there is a surge in demand for lithium-ion batteries to power these vehicles. The growth in electric vehicle sales is driven by increasing consumer awareness, improved charging infrastructure, and supportive government policies aiming to reduce carbon emissions. According to a report, electric vehicle sales in the Asia Pacific region are expected to grow by 20% from 2021 to 2025. The integration of renewable energy sources, such as solar and wind, is another crucial driver for the lithium-ion battery market in the Asia Pacific. As countries in the region strive to reduce their dependence on traditional fossil fuels, the demand for energy storage solutions to harness and store renewable energy during peak production periods is growing. Lithium-ion batteries, with their high energy density and efficiency, play a pivotal role in stabilizing the grid and ensuring a reliable power supply.
Growing Renewable Energy Storage Demand to Propel the Growth in the North America Region
The North America lithium-ion battery market is estimated to garner the highest CAGR by the end of 2035. The integration of renewable energy sources into the power grid necessitates advanced energy storage solutions. Lithium-ion batteries, with their high energy density and efficiency, are well-suited for storing excess energy generated from renewable sources such as solar and wind. The increasing focus on sustainability and the need for grid stability are driving the deployment of energy storage systems, boosting the demand for lithium-ion batteries in North America. The burgeoning demand for electric vehicles (EVs) is a key driver of the lithium-ion battery market in North America. As environmental concerns and government regulations drive a shift toward cleaner transportation, the demand for lithium-ion batteries to power electric vehicles is on the rise. Favorable government policies, including incentives, rebates, and emissions regulations, are propelling the adoption of electric vehicles across the region, creating a substantial market for lithium-ion batteries. According to a report, electric vehicle sales in North America are expected to grow by over 30% annually, reaching approximately 8 million units by 2030.
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Lithium-ion Battery Segmentation by Type
- Lithium Nickel Manganese Cobalt Oxide (LI-NMC)
- Lithium Iron Phosphate (LFP)
- Lithium Cobalt Oxide (LCO)
Amongst these segments, the lithium cobalt oxide segment is anticipated to hold the largest share over the forecast period. Lithium cobalt oxide is a preferred choice for cathodes in batteries powering portable electronic devices such as smartphones, laptops, and tablets. The lightweight and high energy density of LiCoO2 make it suitable for compact and energy-efficient batteries, contributing to the growth of this segment. The increasing penetration of electronic devices in both developed and emerging markets fuels the demand for lithium cobalt oxide in the production of batteries for these applications. Ongoing research and development efforts in battery technology are a significant driver for the lithium cobalt oxide segment. Innovations aimed at improving the energy density, cycle life, and overall performance of lithium-ion batteries contribute to the growth of LiCoO2. Researchers and companies are exploring ways to enhance the efficiency of lithium cobalt oxide batteries, ensuring they remain competitive and meet the evolving demands of various applications, including electric vehicles and consumer electronics. Investments in battery technology research and development are on the rise, with global spending expected to reach USD 15 billion by 2025.
Lithium-ion Battery Segmentation by Component
- Cathode
- Anode
- Electrolyte
- Separator
Amongst these segments, the cathode segment is anticipated to hold a significant share over the forecast period. Government investments and initiatives aimed at advancing battery technology contribute significantly to the growth of the cathode segment. These funds support research in developing cathode materials with improved performance, safety, and sustainability. By fostering innovation and accelerating the commercialization of advanced cathode technologies, government support creates a conducive environment for the cathode segment to thrive. Governments worldwide are allocating substantial funds to support battery technology research and development. For instance, the U.S. Department of Energy has committed over USD 4 billion to advance battery technologies. The increasing adoption of smartphones, laptops, wearables, and other portable electronic devices fuels the demand for high-performance lithium-ion batteries. Cathodes with enhanced energy density and efficiency are crucial for meeting the power requirements of modern consumer electronics. As technology advances and consumer preferences drive the need for longer battery life and faster charging, the cathode segment experiences growth through its contribution to portable electronic device batteries.
Lithium-ion Battery Segmentation by Capacity
- 0-3,000 mAh
- 3,000-10,000mAh
- 10,000-60,000 mAh
- 100,000 mAh
Lithium-ion Battery Segmentation by Application
- Electrical and Electronics
- Automotive
- Industrial
Few of the well-known market leaders in the global lithium-ion battery market that are profiled by Research Nester are Seimens, Lyten, Inc, Yoshino Technology, Ascend Elements, Ola Electric, Hyundai Motor Group, Panasonic Holdings Corporation, Itochu Corporation, Suzuki Motor Corporation, TOSHIBA CORPORATION, and other key market players.
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Recent Development in the Lithium-ion Battery Market
- Ascend Elements, a company based in the US that specializes in battery recycling and engineering materials, has recently announced a collaboration agreement with Honda Motor Co. Ltd. The partnership aims to ensure a stable and sustainable supply of recycled lithium-ion battery materials for Honda's electric vehicles in North America.
- Ola Electric has revealed its intention to establish a manufacturing plant for cells that will power its lithium-ion (Li-ion) batteries. This battery manufacturing facility will be located in a new integrated plant near Bengaluru, India, that will also produce the company's e-scooters.
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