The electric vehicle battery materials market is expected to cross market value of USD 10,307.0 million in 2027 from USD 5,674.6 million in 2020. It is expected to grow at a CAGR of over 8.9% during the forecast period.
Key Market Drivers and Restraints
Growing demand for electric vehicles batteries is a factor expected to drive growth of the global electric vehicle battery materials market. Advanced high-power lead-acid batteries are being developed, but these batteries are only used in commercially available electric-drive vehicles for ancillary loads. Also, technological advancement in EV battery materials have boosted growth of global electric vehicle battery materials market over the forecast period.
However, high manufacturing cost of the battery materials is a factor expected to hamper the global electric vehicle battery materials market. Additionally, the main challenges with nickel-metal hydride batteries are their high cost, high self-discharge and heat generation at high temperatures, and the need to control hydrogen loss. Adoption of advanced Li-ion batteries and technological advancements are factors expected to create potential opportunities for the prominent manufacturers operating in the market.
Impact of COVID 19
The electric vehicle battery materials market will show considerable growth on the back of the global pandemic. Due to the COVID-19 outbreak, global or partial shutdown have a negative impact on the supply chain and product demand. In addition, decrease in trading activities and transportation restrictions in this pandemic has impacted the market growth negatively and hampered its growth.
Asia Pacific to Dominate the global electric vehicle battery materials market
The global electric vehicle battery materials market covers the six regions, namely Europe, North America, Asia Pacific, Latin America (LATAM), Middle East and Africa, including all the key economies in these regions. Asia Pacific market is dominated the global market and accounted for more than 33.6% of the target market. This is attributed to increasing demand for the battery materials in electric vehicles and rising collaboration among players to enhance market penetration.
Lithium-ion batteries would continue to dominate the global electric vehicle battery materials market in terms of material type
Lithium-ion batteries, nickel-metal hydride batteries, lead-acid batteries, and solid-state batteries are the material type of electric vehicle battery materials market. In 2020, lithium-ion batteries segment accounted for the largest share of global electric vehicle battery materials market, owing to growing demand in commercial and residential sectors.
Battery electric vehicle is the major segment in the global electric vehicle battery materials market in terms of vehicle type
Battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and fuel cell electric vehicles are the vehicle type of electric vehicle battery materials market. In 2020, battery electric vehicles segment accounted for the largest share of global electric vehicle battery materials market.
Aftermarket is the major segment in the global electric vehicle battery materials market in terms of Sales Channel
Based on sales channel, the global electric vehicle battery materials market is segregated into original equipment manufacturer (OEM) and aftermarket. In 2020, aftermarket segment is accounted for a significant share in 2020 of the global electric vehicle battery materials market.
Frequently asked questions about global electric vehicle battery materials market
What are the consequences of COVID 19 on global electric vehicle battery materials market? Ans: Disruption of supply chain and shutdown of production lines caused by the current pandemic
Which is the key material type through electric vehicle battery materials market? Ans: Lithium-ion batteries is the most frequently through electric vehicle battery materials market
Which is the key vehicle type through which electric vehicle battery materials market occurs? Ans: Battery electric vehicle is the main vehicle type segment in electric vehicle battery materials market
Which is the key sales channel through which electric vehicle battery materials market occurs? Ans: Aftermarket is the major vehicle type segment in electric vehicle battery materials market
Who are the key players in the global electric vehicle battery materials market? Ans: Asahi Kasei Corporation, LG Chem, Mitsubishi Chemical Holdings, BASF SE, Samsung SDI Co., Contemporary Amperex Material Type Co. Limited (CATL), BYD Auto Co., Ltd., Hitachi, Ltd., Kureha Corporation, The Dow Chemical Company, and Others are key players operating in this market
Which is the leading regional market for global electric vehicle battery materials market? Ans: Asia Pacific has the largest share owing to local presence of market players and increasing demand in electric vehicles
What will be the CAGR (2021-2027) of in global electric vehicle battery materials market? Ans: The market is anticipated to grow at a CAGR of 8.9% throughout the forecast period
Which are the major factors driving the growth of global electric vehicle battery materials market? Ans: Increasing demand for the battery materials in electric vehicles is a key driving factors propelling the growth of this market
