- The automobile industry is also likely to grow during the forecast period
- In 2018, the Asia-Pacific region dominated the global market share
- The increasing demand-supply mismatch of raw materials is likely to hinder the growth of the market
According to a report by Mordor Intelligence, the lithium-ion (Li-Ion) battery market is expected to grow at a CAGR of approx. 22.58 per cent, during the forecast period between 2018-2025.
The report noted that the major factors driving the market include – the emergence of new and exciting markets; via electric vehicle (EV) and energy storage systems (ESS), for both commercial and residential applications, declining lithium-ion battery prices, and the rising sale of consumer electronics.
It also highlighted that the increasing demand-supply mismatch of raw materials is likely to hinder the growth of the market studied. The automobile industry is also likely to grow during the forecast period, on the back of its high energy density, fast recharge capability, and high discharge power, owing to which, the Li-Ion batteries are the only available technology that is capable of meeting OEM requirements for vehicle driving range and charging time.
It mentioned that the recycling of Li-ion batteries is expected to secure the supply of raw materials, such as lithium and cobalt, and reduce the reliance on extracting and refining materials from mineral resources. Recycling of Li-Ion battery that is currently being used in electric vehicles (EVs) offers an excellent opportunity for companies to utilize the refined constituent materials, for manufacturing Li-Ion batteries that are to be used for Energy Storage Systems (ESS).
In 2018, the Asia-Pacific region dominated the global market share. Now with rising deployment of electric vehicles (EVs) in countries like – China and India, and an uptick in demand for electronics with urbanization and surging power purchase parity, the usage of Li-Ion battery is expected to witness significant growth in the region, the report said.