Electric Vehicle Battery Materials Market by Material (Cathode Material, Anode Material, Battery Foil, Binders, and Electrolyte), Source (Virgin Raw Materials, Recycled Raw Materials), and Geography - Global Forecast to 2031

Electric Vehicle Battery Materials Market Size & Forecast

The Electric Vehicle Battery Materials Market is projected to reach $156 billion by 2031, at a CAGR of 30.7% from 2024 to 2031. The growth of the electric vehicle battery materials market is driven by the increasing adoption of electric vehicles worldwide, growing investments in developing lithium-ion battery capacity, and increasing investments by leading automotive OEMs in manufacturing EV batteries.

Increasing efforts for battery recycling are expected to offer significant growth opportunities for players operating in the electric vehicle battery materials market.

However, considerable ESG-related challenges to the battery value chain and rising concerns of geopolitical dependencies due to the limited availability of raw materials may hinder the growth of this market. The volatile supply chain and high cost of battery recycling are major challenges faced by the players operating in the electric vehicle battery materials market.

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Growing Investments in Developing Lithium-Ion Battery Capacity is Expected to Provide Growth Opportunities for Electric Vehicle Battery Materials Market in Forecasted Period

The need to increase the storage capacity, lower the cost, and extend the life of lithium-ion batteries is generating the need to develop battery technologies. Some institutes are taking a step to develop battery technology that can improve the battery capacity. DevAdvanced Institute of Science and Technology (JAIST), Japan, discovered a binding copolymer called bis-imino-acenaphthenequinone-paraphenylene (BP) to glue electrodes in the battery. This can extend the capacity of the battery and allow it to run 1,700 charge-discharge cycles. All these advantages combined led to some serious performance improvements. Also, Purdue University scientists and engineers have introduced a new electrode design that would increase a battery’s lifespan, make it more stable, and shorten its charging time.

Similarly, companies are also investing in the development of lithium-ion batteries. For instance, in February 2021, Amara Raja (India), an automotive battery maker, decided to open a research hub to develop lithium-ion cells in Andhra Pradesh. This can make it a suitable supplier after the successful rollout of electric vehicles and plans for electrification by the Indian government. Furthermore, in February 2021, Northvolt (Sweden) raised USD 600 million in equity to invest in capacity expansion, research and development, and large-scale recycling.

Furthermore, in May 2021, Ford and SK Innovation announced a joint venture, BlueOvalSK. This joint venture aims to produce 60 GWh annually in traction battery cells and array modules. Through this joint venture, Ford and SK Innovations jointly develop and industrialize battery cells to optimize performance. Such advancements and developments are helping to boost the lithium-ion battery capacity—increasing the demand for EV battery materials in the market.

Key Findings in the Electric Vehicle Battery Materials Market Study:

In 2024, the Cathode Material Segment is Expected to Dominate the Electric Vehicle Battery Materials Market

Based on material, the global electric vehicle battery materials market is segmented into cathode materials, anode materials, binders, battery foils, and electrolytes. In 2024, the cathode material segment is expected to account for the largest share of the electric vehicle battery materials market. Cathode materials significantly influence the voltage and capacity of batteries. It determines the energy density of batteries; higher energy density cathodes contribute to batteries with greater energy storage capacity, allowing for longer lasting and more powerful battery systems. The choice of cathode material influences the specific properties of the battery, such as safety, cycle life, and cost. The durability and cycle life of a battery are influenced by the cathode material. Batteries with high-quality cathodes can withstand more charge-discharge cycles, making them suitable for long-term use. Due to such factors, cathode materials account for the largest share of the battery materials market.

In 2024, the Virgin Raw Materials Segment is Expected to Dominate the Electric Vehicle Battery Materials Market

Based on source, the global electric vehicle battery materials market is segmented into virgin raw materials and recycled raw materials. In 2024, the virgin raw materials segment is expected to account for the largest share of the electric vehicle battery materials market. The virgin raw materials segment commands the larger share of the global battery materials market since virgin materials often offer higher and more consistent quality and purity which helps in maintaining desired battery specifications and performance characteristics. Additionally, the infrastructure for extracting and processing virgin raw materials for batteries may be more established and widely available, making it more practical and cost-effective for battery manufacturers to source virgin materials.

Asia-Pacific: Largest Regional Electric Vehicle Battery Materials Market

Based on geography, the global electric vehicle battery materials market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia–Pacific is expected to account for the largest share of electric vehicle battery materials. The large share of this region is attributed to the leading position commanded by China in the global li-ion battery manufacturing capacity. China also dominates the other parts of the battery supply chain, including mining, refining, and processing of battery materials such as lithium and graphite etc.

Electric Vehicle Battery Materials: Key Players:

Some of the key players operating in the electric vehicle battery materials market are BASF SE (Germany), Targray Technology International Inc. (Canada), Mitsubishi Chemical Group (Japan), Kureha Corporation (Japan), Resonac Holdings Corporation (Japan), Umicore (Belgium), UBE Corporation (Japan), Nichia Corporation (Japan), Nei Corporation (U.S.), Tanaka Chemical Corporation (Japan), Toda Kogyo Corp (Japan), ENTEK International LLC (U.S.), Epsilon Advanced Materials Pvt Ltd (India), Ascend Elements, Inc. (U.S.), Arkema SA (France).

Electric Vehicle Battery Materials Market Report Summary:

Key questions answered in the report: