The demand for the battery materials is rising rapidly owing to the surging volume of production of electronics such as computers, laptops, mobile phones, TVs, and so on
The global battery materials market size was estimated at US$ 50.28 billion in 2021 and is predicted to surpass US$ 82.3 billion by 2030, growing at a CAGR of 5.63% from 2022 to 2030, as per a report by Precedence Research.
The changing consumer lifestyle and rising disposable income is augmenting the demand for various consumer electronics such as desktops, laptops, and smartphones which is expected to boost the demand for lightweight and rechargeable batteries.
This is a prominent driver of the global battery materials market. The rising technological advancements in the mining, processing and production of the battery materials and batteries are expected to contribute significantly to the market growth during the forecast period
Region-wise, Asia Pacific dominated the global battery materials market in 2021.
North America is anticipated to witness strong growth during the forecast period. The strict government regulations pertaining to the emissions from vehicles coupled with the increased consumer awareness regarding the benefits of electric vehicles is significantly spurring the demand for electric vehicles across the region.
The demand for battery materials is rising rapidly owing to the surging volume of production of electronics such as computers, laptops, mobile phones, TVs, and so on.
As per the IBEF, the market value of the global consumer electronics market was over US$426 billion in 2020.
The government in various countries like Canada, Japan, Thailand, and South Korea are offering subsidies to the consumers to buy electric vehicles. The increased government initiatives to accelerate the adoption of eco-friendly electric vehicles is presenting lucrative growth opportunities to the market players. The rising demand for EVs across the globe will drive the demand for battery materials in the forthcoming future.
There is a significant concern among the EV manufacturers and the consumers regarding safety. The lithium-ion batteries used in EVs highly react when it comes in contact with water. It may break fire in the electric vehicle. Therefore, the compromising safety of the consumer is a major challenge among the EV manufacturers that may restrict the adoption of lithium-ion batteries.