BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimates global battery electrolyte market size at USD 7.6 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects global battery electrolyte market size to grow at a robust CAGR of 17.6% reaching a value of USD 23.5 billion by 2029. Global battery electrolyte market growth is driven by factors including increasing consumer electronics adoption, growing awareness about renewable energy storage, and rising demand for lithium-ion batteries in the renewable energy sector. Rapid growth in the production of electric battery vehicles and the rising use of consumer electronics as well as the availability of binder-free electrodes for lithium-ion batteries are also expected to drive global battery electrolyte market during the forecast period. It is expected that new trends in high-end consumer electronics, such as digital cameras, smartphones, laptop computers, gaming consoles, and torches, will further expand the market for battery electrolytes across the globe during the period in analysis.
Global Battery Electrolyte Market – Overview
A battery's primary job is to store electrical energy as chemical energy that it can later transform into electricity. Battery electrolyte, also known as battery acid due to its acidic nature and made up of a mixture of liquids, such as water and sulfuric acid, is a component of most of the automotive batteries. It is widely used by a variety of end users, including those in the industrial, transportation, energy storage, consumer electronics, electric vehicle (EV) battery, and residential and other sectors. Electrolyte is one of the three essential components. The other two being an anode and a cathode.
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Opportunity: Increasing Demand for Consumer Electronics Applications
The consumer electronics sector was an early user of Li-ion batteries, due to their rechargeable nature and high energy density, and it is now one of the largest end-use industries for Li-ion batteries. In 1991, Sony was the first manufacturer to commercialize Li-ion batteries for devices, paving the way for cellphones and portable computers.
Smartphone sales are now increasing rapidly all around the world. Smartphone sales have skyrocketed in some emerging markets, including India, Indonesia, Vietnam, and South Africa. India's smartphone market expanded tenfold between 2011 and 2020, with shipments increasing from roughly 14.5 million in 2011 to nearly 150 million in 2020. IBEF estimates that the total number of 5G device shipments in India could be between 32 million and 40 million in the coming years. The market for Li-ion battery metals is expanding due to the growing popularity of smartphones and IoT gadgets, such as Google Home and Amazon Echo Dot, which has increased demand for Li-ion batteries and Li-ion battery metals.
Challenge: Rising Raw Material Prices May Limit Market Growth
Battery metal costs have a significant impact on Li-ion battery prices. Companies are constantly working to reduce the price of Li-ion batteries to increase their global acceptance. The cost of essential metals used in Li-ion batteries, such as lithium, cobalt, and nickel, on the other hand, is extremely volatile and fluctuates wildly. The cost of key metals has risen dramatically in recent years, posing challenges for Li-ion battery manufacturers and consumers. According to the US Geological Survey (USGS), spot lithium carbonate prices in China increased by USD 7,000 per ton in January 2022 compared to November 2021 pricing. Furthermore, according to the USGS, average spot lithium carbonate prices in 2021 was USD 17,000, up more than 100% from prices in 2020.
Because of the rising prices, some companies have begun to analyze the possibility of entering the lithium mining sector themselves. Elon Musk, for example, stated in April 2022 that due to the recent increase in lithium costs, Tesla may have to enter the lithium mining and refining sector itself. Nickel and cobalt prices have risen dramatically in recent years, and the effects of the Russia-Ukraine conflict are expected to drive nickel prices even higher in FY2022–23. For businesses engaged in the production of Li-ion batteries, metal price increases pose a serious challenge, as they have an impact on the total cost of the battery's production. As a result, businesses might look for fresh and less expensive metals, such as sodium, calcium, and zinc, to replace costly lithium, cobalt, and nickel.
Russia’s War in Ukraine Disrupts Global Battery Metals Supply Chain
Russia is estimated to hold about 11% of the global nickel ore supply and more than 20% of high-grade Class 1 nickel that is used for batteries in the high-end electric vehicles (EVs). Consequently, the invasion of Russia of Ukraine in the last week of February 2022 has aggravated the challenging situation in the battery metals supply chain across the globe. The Russia-Ukraine war has also exposed the battery metals industry’s reliance on nickel from Russia for battery manufacturing. For instance, nickel prices touched USD 1,000 per ton on the London Metal Exchange (LME) in April 2022. As a result, it has significantly affected supply chains of global automotive industry, particularly electric vehicles (EVs). Due to economic sanctions on Russia, many automobile manufacturers and suppliers have stopped their operations in the country. The war has also affected the sourcing of rare metals, such as lithium and nickel, which are essential metals for batteries. Hence, the further escalation of Russia war in Ukraine is anticipated to affect the growth of global battery electrolyte market.
Impact of COVID-19 on Global Battery Electrolyte Market
Because COVID-19 is a truly unprecedented global public health emergency that has affected almost every industry, its long-term effects are expected to impact industry growth throughout the forecast period. Our ongoing work extends our research framework to ensure the inclusion of underlying COVID-19 issues and potential future directions. The report provides information on COVID-19 while considering changes in consumer demand and behavior, purchasing patterns, supply chain rerouting, market dynamics, and significant government interventions. The updated study, which considers the market impact of COVID-19, contains insights, analysis, projections, and forecasts.
Global Battery Electrolyte Market – By End User
The global battery electrolyte market by end user is segmented into Electric Vehicles, Consumer Electronics, Energy Storage, and others. During the forecast period, the electric vehicles segment is expected to hold the highest market share. An increasing demand for electric cars in North America and Asia Pacific is driving the battery electrolyte market. Electric vehicles, e-bikes, and self-driving cars are major consumers of Li-ion batteries, driving its demand. Factors such as energy savings and pollution reduction are driving consumer acceptance of electric vehicles.
The consumer electronics sector is expected to account for a sizable revenue share of the battery electrolyte market. Rechargeable Li-ion batteries are used in a wide range of consumer electronics products, including electric toothbrushes, hoverboards, computers, tablets, smartphones, and vaping accessories. During the forecast period, the demand for consumer electronics products, such as smartphones, laptops, tablets, and IoT devices, is projected to increase in developing countries in Southeast Asia, Africa, South America, and the Middle East.
Competitive Landscape
Global battery electrolyte market is fiercely competitive. Prominent players in global microturbine market are Mitsubishi Chemicals Corporation, UBE Industries, Shenzhen Capchem Technology Co, Ltd., 3M, Advanced Electrolyte Technologies, Hitachi Chemicals, BASF SE, Unicore, Johnson Controls, American Elements, Nexeon Limited, Targray Industries Inc., GS Yuasa International Ltd, and LG Chem. These companies use various strategies, including increasing investments in their R&D activities, mergers and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in global battery electrolyte market.
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