The global lithium-ion battery materials market is projected to grow from USD 41.9 billion in 2024 to USD 120.9 billion by 2029, at a compound annual growth rate (CAGR) of 23.6%, according to a report by MarketsandMarkets™. This market surge is fueled by increased demand for high-performance batteries across various applications, including electric vehicles (EVs), portable devices, and energy storage systems.
Electric Vehicles to Dominate the Market
The electric vehicles (EV) segment is expected to account for the largest share of the lithium-ion battery materials market during the forecast period. As governments worldwide implement strict emissions regulations and incentivize clean transportation, demand for lithium-ion batteries, known for their energy density and fast charging capabilities, continues to rise. EVs rely heavily on these batteries for efficient energy storage, driving the need for materials such as lithium, nickel, cobalt, and graphite.
NMC Batteries Leading in Battery Chemistry
The Lithium Nickel Manganese Cobalt (NMC) segment is expected to dominate the market in terms of battery chemistry. NMC batteries offer a superior balance of energy density, power, and lifespan, making them ideal for automotive and energy storage applications. The combination of nickel, manganese, and cobalt enhances battery performance, enabling longer ranges and faster charging for electric vehicles.
Cathode Materials Driving Market Growth
Cathode materials are projected to account for the largest segment by material during the forecast period. Cathodes, which directly influence a battery’s capacity and efficiency, are crucial in determining performance. The increasing demand for EVs and energy storage solutions is boosting the market for advanced cathode materials like lithium, nickel, and cobalt.
Asia-Pacific to Lead the Market
Asia-Pacific is expected to hold the largest share of the lithium-ion battery materials market by 2029. The region is home to major battery manufacturers and benefits from strong demand for EVs and consumer electronics. Countries like China, South Korea, and Japan are at the forefront, driving the growth of the lithium-ion battery industry.
Source: prnewswire.com
