Global Lithium-ion Battery Market Research Report: Forecast (2024-2030)

Market Definition

A Lithium-ion battery, or Li-ion battery, is a rechargeable battery that utilizes the reversible reduction of lithium-ions to store energy. It is the predominant battery type in portable consumer electronics and electric vehicles. Lithium-ion batteries are currently used in most portable consumer electronics, such as cell phones and laptops, owing to their high energy per unit mass relative to other electrical energy storage systems.

Market Insights & Analysis: Global Lithium-ion Battery Market (2024-30)

The Global Lithium-ion Battery Market size was valued at USD 62 Billion in 2023 and is projected to reach USD 172 Billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 15.5% during the forecast period, i.e., 2024-30. The rapidly growing renewable energy sector has swiftly led to the persistent adoption of lithium-ion batteries in recent years. The large-scale incorporation of these batteries in several new applications has instigated investors to bring their focus to R&D and make a substantial investment toward the advancements.

Market behemoths such as Samsung SDI, LG Chem Ltd., Hitachi Chemical Co., Ltd., Johnson Controls International PLC, and Panasonic Corporation are making relentless investments in setting up lithium-ion battery plants and manufacturing units to expand their portfolios. Besides, the companies constantly seek collaboration with government agencies to level up their market presence. Apart from the key players, governments worldwide willing to sponsor energy and infrastructural development projects are anticipated to contribute to market growth in the coming years. For instance,

• In 2022, BEL, Bharat Electronics Limited, in collaboration with NSTL (DRDO), has announced the production of indigenously developed lithium-ion battery cells for electric vehicles. BEL has built a pilot plant dedicated to the research and manufacturing of Li-Ion prismatic cells. BEL has designed three varieties of Li-Ion prismatic cells, 3.2V, 10 Ah / 25 Ah, using raw materials such as anode, cathode, electrolyte, solvents, binder, and so on. The application includes e-mobility, underwater, and remote power systems.

The preference for lithium-ion batteries has largely been demonstrated by automobiles and consumer electronics, primarily because of their longer shelf life and higher energy density. Since the cost of fossil fuels and gasoline has witnessed a surge in the past few years, electric vehicles are emerging as a better alternative to ICE vehicles. And, with more electric vehicles coming on the road, the demand for these batteries is anticipated to increase in the forecast period.

Global Lithium-ion Battery Market Driver:

Frequent Adoption of Li-ion Batteries in Hybrid and Plug-in Vehicles - Most of the market expansion can be attributed to the growing adoption of electric or hybrid vehicles worldwide. The major companies are investing in the production of mobility solutions that are not just sustainable but also ultra-modern in their techniques. This factor has led to a swift increase in the number of electric vehicles, with the common goal of becoming carbon neutral. With companies like Tesla and BYD coming up with high-powered electric vehicles, the market is set to receive a major push in the coming years. Hence, being the essential power source for electric and plug-in vehicles, lithium-ion batteries have gained traction in recent years, which, in turn, has accelerated industry growth.

Global Lithium-ion Battery Market Challenge:

Escalating Transportation and Storage Concerns of Consumed Batteries - As per a report by the Environmental Protection Agency published in July 2021, there have been 254 fire incidents at 64 waste facilities because of lithium metal or lithium-ion batteries. Since consumed batteries contain hazardous chemicals, such as acids and heavy metals, including mercury and lead, it is crucial to keep them in watertight containers and store them away from other combustible materials. Besides, it is equally important to keep a Class D extinguisher and sand nearby as a precautionary measure in the case of a fire. Therefore, to overcome such shortcomings and explore new opportunities, manufacturers need to work on lithium-ion battery technology.

Global Lithium-ion Battery Market (2024-30): Segmentation Analysis

The Global Lithium-ion Battery Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as follows:

Based on Type

• Lithium Cobalt Oxide
• Lithium Manganese Oxide
• Lithium Iron Phosphate
• Lithium Titanate Oxide
• Lithium Sulfur
• Others (Lithium Nickel Cobalt, etc.)

Here, the Lithium Cobalt Oxide segment acquired the lion’s share of the market during the historical period and is anticipated to prevail in the same dominance during the forecast period. It largely ascribes to the remarkable properties of lithium cobalt oxide batteries that facilitate high-current charging and discharging and enable devices to release relatively more energy in a shorter span. Besides, these batteries exhibit continuous discharge rates of up to 50C and pulse discharge rates of up to 150C, making them more appropriate for end-users.

Moreover, with frequent deployment in portable electronic devices, digital cameras, and personal computers, the electronics industry emerges as one of the prominent consumers of lithium-ion batteries, predominantly lithium cobalt oxide. Further, with broad applications in telecom towers and home inverters that require an uninterrupted power supply, these batteries have begun to gain popularity worldwide.

Global Lithium-ion Battery Market: Regional Projections

Geographically, the Global Lithium-ion Battery Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

The Asia-Pacific region demonstrated notable market growth, with substantial adoption exhibited by China during the historical years. It is anticipated to follow the same trends during the forecast period. China, aiming to reduce carbon footprints across cities, is expected to register maximum adoption of lithium-ion battery packs in the coming years. Moreover, China, followed by South Korea, Australia, Japan, and India, relentlessly encourage electric vehicles through their regulatory frameworks and subsidized initiatives.

Other than this, the electrification of delivery vehicles and pickups has further prompted the demand for more lithium-ion batteries across the region. Moreover, with major automobile companies in the commercial segment investing in hybrid drive systems across different model ranges, the electric or plug-in hybrid vehicle is expected to witness a significant surge in its sales revenue. Consequently, the need for more lithium-ion batteries is likely to surface in the coming years, making the market witness massive expansion. For instance,

• China Evergrande New Energy Vehicle Group Ltd. finally began deliveries of its Hengchi 5 electric vehicle, with the first 100 customers getting their cars by the end of October 2022. The company aims to shift its primary business from real estate to the automobile venture over the next decade, aiming for 1 million deliveries by 2025.

Global Lithium-ion Battery Industry Recent Development:

• In February 2024, Panasonic Energy Co., Ltd., part of the Panasonic Group, signed a long-term agreement with leading battery component manufacturer H&T Recharge. This partnership will ensure a reliable supply of lithium-ion battery cans across North America, strengthening Panasonic's commitment to ramping up the production of safe and efficient EV batteries.
• In June 2023, Samsung SDI made history as the first lithium battery manufacturer to receive carbon footprint labels from Carbon Trust. These labels measure the greenhouse gas (GHG) emissions throughout a product's entire life cycle, from production and raw materials to distribution and disposal, highlighting Samsung SDI's commitment to sustainability.\
• In November 2023, Toshiba Corporation introduced a groundbreaking lithium-ion battery featuring a cobalt-free 5V-class high-potential cathode material. This innovation significantly reduces performance-degrading gases from side reactions, ensuring a longer-lasting battery. Designed for versatility, this advanced battery can power everything from electric vehicles to power tools.

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