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 vehicle batteries is a factor expected to drive the 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 advancements in EV battery materials have boosted the growth of the global electric vehicle battery materials market over the forecast period.
However, the high manufacturing cost of the battery materials is a factor expected to hamper the global electric vehicle battery materials market. The main challenges with nickel-metal hydride batteries are:
- Their high cost.
- High self-discharge and heat generation at high temperatures.
- The need to control hydrogen loss.
The adoption of advanced Li-ion batteries and technological advancements are 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 due to the global pandemic. However, due to the COVID-19 outbreak, a global or partial shutdown had a negative impact on the supply chain and product demand. In addition, the decrease in trading activities and transportation restrictions in this pandemic has impacted the market growth negatively and hampered its growth.
The Asia Pacific to Dominate the global electric vehicle battery materials market
The global electric vehicle battery materials market covers six regions: Europe, North America, Asia Pacific, Latin America (LATAM), Middle East, and Africa, including all the key economies in these regions. However, the Asia Pacific is dominated by the global market and accounts 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, nickel-metal hydride, lead-acid, and solid-state batteries are the material type of electric vehicle battery materials market. In 2020, the lithium-ion batteries segment accounted for the largest share of the global electric vehicle battery materials market, owing to growing demand in the 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, the battery electric vehicles segment accounted for the largest share of the global electric vehicle battery materials market.
Aftermarket is the major segment in Sales Channel's global electric vehicle battery materials market.
Based on sales channels, the global electric vehicle battery materials market is segregated into original equipment manufacturer (OEM) and aftermarket. In 2020, the aftermarket segment accounted for a significant share 2020 of the global electric vehicle battery materials market.
