by Sustainable battery materials are specialized materials used in manufacturing batteries which have minimal environmental impact during extraction and production. These materials include lithium iron phosphate, lithium nickel manganese cobalt oxide, and lithium titanate among others. Sustainable battery materials provide high energy density and longer life cycles to batteries which increases the driving range of electric vehicles.
The global Sustainable Battery Materials Market is estimated to be valued at US$ 75.95 billion in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period from 2024 to 2031.
The Sustainable Battery Materials Market Size is driven by the rising adoption of electric vehicles worldwide in order to reduce vehicular emissions. Various governments are promoting electric mobility by providing subsidies and tax rebates on purchase of electric vehicles. This has boosted the demand for lithium-ion batteries which is a key factor augmenting the sustainable battery materials market. manufacturing hubs to cater to the growing regional demand.
Key Takeaways
Key players operating in the Sustainable Battery Materials market are Ascend Elements, BASF SE, TCI Chemicals Pvt. Ltd, Mitsubishi Chemical Holdings, TORAY INDUSTRIES INC., Kureha Corporation, Umicore Cobalt & Specialty Materials, NEI Corporation, NICHIA Corporation, Hitachi Chemical Co. Ltd, Asahi Kasei, Epsilon Advanced Materials.
The growing demand for electric vehicles is propelling the sustainable battery materials market. Various automakers are investing heavily in developing electric vehicles and have announced ban on petrol/diesel vehicles by 2030. This is expected to drive the need for sustainable batteries.
Major players in the market are expanding their production facilities globally to meet the rising demand from the battery industry. For instance, BASF is setting up a cathode active material production site in Poland to cater to European market. Umicore is doubling its production capacity for cathode materials in Korea and China.
Market Key Trends
One of the key trends gaining traction in the sustainable battery materials market is the shift towards more ethical and environmentally friendly battery materials and technologies. Growing awareness about environmental damage caused by mining of materials like cobalt has led manufacturers and R&D centers to explore alternatives. Areas of focus include sustainable cathode chemistries with reduced cobalt or no cobalt content, recycling spent batteries, and local sourcing of raw materials.
Porter’s Analysis
Threat of new entrants: The sustainable battery materials market requires high capital investments and the regulations are strict making it difficult for new players to enter the market.
Bargaining power of buyers: Large organizations have significant bargaining power over suppliers as they can negotiate pricing, however for smaller buyers the power is weak.
Bargaining power of suppliers: The key raw materials suppliers have considerable bargaining power due to the patents and technologies involved in manufacturing specialized materials.
Threat of new substitutes: New battery chemistries and technologies pose a threat and can disrupt the market quickly if found more sustainable.
Competitive rivalry: The market is consolidated with major players acquiring smaller firms to gain market share and competitive edge.
The Asia Pacific region dominates the global sustainable battery materials market by value. China is the largest producer and consumer of lithium-ion batteries globally. Countries like Japan, South Korea are investing heavily in R&D to source critical minerals within their borders and boost domestic production of battery materials. Europe is the second largest market led by Germany, Sweden, and Norway. Stringent environmental norms regarding sustainability and recycling are driving growth. North America is a significant market with the US being a major EV adopter. Advancements in mining, processing, and recycling are gathering momentum in the region. The growing EV adoption in Latin America and the focus on lowering carbon emissions make the region one of the fastest growing sustainable battery materials market.
Geographical Regions:
The Asia Pacific region holds the major share of the global sustainable battery materials market value due to huge demand for electric vehicles from China and presence of leading battery materials manufacturers. China dominates the lithium-ion battery supply chain globally and sources critical raw materials like lithium, cobalt, graphite from within and outside countries. Countries like Japan, South Korea have made huge investments in R&D to ensure sustainable supply of minerals and bolster local battery materials production.
The Latin American region is poised to witness the fastest growth in the sustainable battery materials market during the forecast period. The growing EV adoption in countries like Brazil, Mexico supported by initiatives to lower carbon emissions is driving materials demand up. Advancement in mining techniques and recycling infrastructure is helping boost sustainable production and usage of materials for batteries in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
