Lithium-ion Battery Metals Market Size and Share Analysis by End User (Automotive Industry, Consumer Electronics, Energy Storage System), Constituent Metal (Lithium, Nickel, Cobalt), Cell Chemistry (Lithium Cobalt Oxide, Nickel Magnesium Cobalt, Nickel Cobalt Aluminum, Lithium Manganese Oxide, Lithium Iron Phosphate)- Industry Growth Forecast to 2030

Market Overview

The global lithium-ion battery metals market size was $14,098.7 million in 2021, and it will grow at a CAGR of 33.7% during 2021–2030, to reach $192,610.3 million by 2030. This is ascribed to the increasing demand for these batteries for automobiles, energy storage systems, and consumer electronics.

Regionally, Europe is expected to grow the fastest owing to an increase in the investment by leading automotive OEMs in EVs. Moreover, in January 2021, the European Union approved a plan to provide financial aid to Tesla, BMW, and other automakers to support the production of electric vehicle batteries, in order to shift away from the fossil fuel usage.

Automotive Industry Holds Largest Share

The automotive industry is the major contributor to the market revenue, with a 50.7% share in 2021. This is mainly because major emerging and advanced economies are increasingly focusing on lowering carbon emissions and switching to electric cars. A record year for this ideology, 2021 saw 6.6 million EV sales, representing 9% of the global car market. This is driving the consumption of the metals used in automotive lithium-ion batteries, especially those integrated into EVs.

China is the leader in the EV industry due to the stringent emission regulations imposed by the government, as well as the incentives it is offering to set up a supportive EV ecosystem, including for vehicle purchase. Furthermore, a focus on a strong battery manufacturing sector and wide availability of the charging infrastructure make the country the EV industry leader.

The consumer electronics category holds the second-largest lithium-ion battery metals market share. Lithium-ion batteries are widely integrated into smartphones, laptops, smartwatches, and other consumer products. The market for them is driven by an expanding middle-class population, improving lifestyles, and a swift transition toward smart gadgets.

In addition, the ICT sector is receiving significant investments from regional nations, as part of their drive on economic diversification, which will increase the demand for consumer electronics in the coming years. Since these gadgets utilize lithium-ion batteries, the soaring demand for them will boost the requirement for an efficient power source. As per data, as of 2021, the U.S. accounted for 36% of the global ICT market share, while the EU and China each accounted for an around 11% share.

Lithium–Iron Phosphate Batteries Will Witness Highest CAGR

The lithium–iron phosphate cell chemistry will experience the highest CAGR, of 34.1%, during the forecast period. This is ascribed to the higher energy density, capacity, and cost-effectiveness of the LFP chemistry over others. Essentially, the surging demand for LFP batteries from the automotive and energy storage industries is expected to support the dominant share of the category during the forecast period.

Furthermore, the LFP material is less toxic to the environment. The number of R&D projects that manufacturers are working on to develop LFP batteries and their ability to produce the cells have significantly increased in the recent past, thus contributing to the growth of the lithium-ion battery metals market.

CATL is currently the largest producer of LFP batteries, which are used by Tesla for its short- and medium-range electric cars made in Shanghai; CATL also exports these to Europe. Similar to this, many other players in the LFP battery industry have been boosting their R&D budgets and portfolio-enhancing investments.

The nickel–manganese–cobalt category will be the second-fastest-growing during the forecast period, majorly due to the wide usage of Li–NMC batteries in EVs. This chemistry is preferable due to its eco-friendliness and appreciable performance in EVs.

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APAC Holds Largest Share

The APAC region, which currently consumes the highest amount of lithium-ion battery metals, will witness the second fastest growth during the forecast period, at a 33.8% CAGR. The demand for the metals used to make Li-ion batteries is primarily driven by the rising demand for EVs.

Because EVs are being adopted at a high pace in Japan, Australia, South Korea, and India, the demand for automotive Li-ion battery cathode and anode materials continues to surge in the region. EV sales are expected to follow the same path in the coming years and be a key factor for the growth of the lithium-ion battery metals market in the region.

China is the largest shareholder in the regional market due to its growing EV industry, holding an about 40% share of the world's battery electric vehicle (BEV) market. In the same vein, with popular models, such as the Corolla Hybrid and Accord Hybrid, Toyota and Honda, respectively, have dominated the hybrid vehicle market in China.

Moreover, the widening application of lithium-ion batteries in consumer electronics is propelling the market growth. All the devices that are used on a daily basis, from wireless earbuds to laptops and cell phones, are powered by lithium-ion batteries. As per recent statistics, China is the major contributor to the global consumer electronics market, with the sales revenue in the country equaling $150 billion in 2021.

North America is the second-largest contributor to the market, with a share of 25.6% in 2021. The penetration of EVs in the U.S. and Canada is the major driver for the lithium-ion battery metals market growth in the continent. The continued boom of EV sales in the U.S. and Canada is credited to these countries’ efforts for transforming their public transportation infrastructure to electric.

To Increase Market Share, Companies Involved in Several Strategic Developments

The market is consolidated with the presence of a few major players. In recent years, they have been involved in partnerships, patent filing, and product innovations in order to stay ahead of their competitors.

• In October 2021, Echion Technologies (“Echion”) was granted a U.K. patent for mixed niobium oxide (XNO), which will be used for superfast-charging lithium-ion battery cells.
• In June 2021, Albemarle established a Battery Materials Innovation Center in North Carolina. This facility will conduct R&D on lithium hydroxide, lithium carbonate, and other advanced energy storage materials, to deliver high-performing, cost-effective batteries for the growing electric vehicle market.

Top Manufacturers in Lithium-Ion Battery Metals Market Are:

• BASF TODA Battery Materials LLC
• Albemarle Corporation
• Ganfeng Lithium Co. Ltd.
• China Molybdenum Co. Ltd.
• L&F Co. Ltd.
• POSCO CHEMICAL
• Umicore
• Nichia Corporation

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on End User

• Automotive Industry
• Consumer Electronics
• Energy Storage System

Based on Constituent Metal

• Lithium
• Nickel
• Cobalt

Based on Cell Chemistry

• Lithium Cobalt Oxide
• Nickel Manganese Cobalt
• Nickel Cobalt Aluminum
• Lithium Manganese Oxide
• Lithium Iron Phosphate

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Spain
  • Italy
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Africa
  • Saudi Arabia