Global Electric Vehicle Battery Cells and Packs Materials Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

The lithium-ion batteries in electric vehicles (EVs) present very different material demands at the cell- and pack level compared with the internal-combustion engine (ICE) vehicles they replace. While internal-combustion engine (ICE) drivetrains heavily rely on aluminum and steel alloys, Li-ion batteries utilize a great deal of materials such as cobalt, lithium, nickel, copper, thermal interface materials, insulation, and much more at a cell- and pack-level. Markets for these battery materials will see a rapid increase in demand that wouldn't have been present without the growth of electric vehicle markets.

Drivers:

• The growing demand for high energy and power density batteries to perform over hundreds of cycles during the charging and discharging of batteries has increased the demand for lithium ion battery materials.
• Growing investment in battery materials manufacturing in various countries improves the battery value chain.
• The Growing R&D on battery materials such as materials, anode, electrolytes, and others to develop next-generation solutions.
• Growing consumer expectations in automotive OEMs increased the demand for high-performance materials.
• Growing demand for high-performance miniaturization and system integration of energy storage systems in modern devices such as medical implants, radiofrequency identifiers, NFCs or smart cards, and microsensor networks.

The primary components of lithium ion Batteries are materials, anodes, electrolytes, and separators.

Cathode materials are key components that determine the composition of negative electrodes. The cathode materials in the crystal structure consist of cobalt, nickel, and manganese. The main active elements of the cathode were originally cobalt but have been substituted partially with nickel (NCM, NCA), Lithium Cobalt Oxide (LCO), Lithium Manganese Oxide (LMO), and Lithium Iron Phosphate (LFP).

Anode materials are key components that determine the composition of positive electrodes. The lithium ion batteries use graphite powder and silicon as an anode material. The anode materials are either synthetically produced (artificial graphite) or mined from the ground (natural graphite), then heavily processed before being baked onto a copper foil to serve as anodes.

Lithium-ion Battery separators separate cathode (negative electrode) and anode (positive electrode) materials within a cell mechanically. These separators prevent short circuits between the battery's internal components. It also allows for maximum ionic conductivity during charging or discharging. Lithium-ion battery separators are designed to shut down the batteries in the event of overheating or short circuits because they are porous, chemically, and electrochemically stable to the electrolyte and electrode materials in a battery.

Thermal Interface Materials (TIM) remove the excess heat from battery pack cells to regulate battery temperature, improve the functionality of the battery and prolong battery life. Created with application adaptation and the ability to customize, our thermally conductive gap fillers work as heat sinks, providing a thermal path for heat to flow away from the battery.

Binder materials are responsible for holding the active material particles within the electrode of a lithium ion battery (LIB) together to maintain a strong connection between the electrode and the contacts. These binding materials are normally inert and have an important role in the manufacturability of the battery.

The growing adoption of electric vehicles among consumers has helped to boost the battery cells and packs materials market for pollution-reducing vehicles. In addition to the advanced battery technologies, the number of electric vehicles is constantly increasing thanks to the advantages associated with them, such as the reduced need to maintain the engine, the reduction of hazardous oil waste, and the reduction in pollution caused by fuel combustion engines.

Automotive lithium ion batteries provide power for electric vehicles. lithium ion batteries are widely used in electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), and their adoption is expected to increase even further in the future.

Battery Cells and Packs materials Opportunities:

• Rapid technological development in batteries to meet customer needs has increased the demand for customised products.
• The growing demand for lithium ion solid state batteries is increasing the demand for materials in EVs.
• Growing usage of lithium ion batteries in power backups, mobile, laptops, electric mobility, energy storage systems, and consumer electronic goods.  
• Markets with great potential are China, Germany, America, and others.

Battery Materials Policies:

• In May 2018, under the European Green Deal policy, the European Commission adopted the strategic action plan on batteries to support the battery value chain in Europe, from raw material extraction, sourcing, and processing, battery materials, cell production, battery systems, and reuse to recycling.
• In November 2021, the United States introduced the Federal Consortium for Advanced Batteries (FCAB) to bring Federal agencies interested in domestic manufacturing and supply of lithium ion batteries and are committed to accelerating the development of a robust and secure domestic industrial base.
• In March 2022, India introduced the National Programme on Advanced Chemistry Cell Battery Storage (NPACC) under the Production Linked Incentive (PLI) Scheme to support the battery value chain in India, from raw material extraction, sourcing, and processing, battery materials, cell production, battery systems, reuse to recycling.

lithium ion Battery Cells and Packs materials Challenges:

• The production of lithium ion battery materials depends on a reliable supply of raw minerals and processed functional materials. However, the depletion of mineral reserves in countries, namely India, the Philippines, Vietnam, Mexico, Argentina, and Indonesia, is likely to deter market growth.
• Low competency in high heat tolerance materials is challenging the market. 
• Growing demand for second life EV batteries in energy storage systems.

lithium ion Battery Cells and Packs materials Restraint:

• Growing demand for other batteries such as sodium-ion batteries and flow batteries in energy storage and mobility.

Recent Developments :

• In June 2022, BASF introduced 2nd generation styrene-butadiene rubber (SBR) binder Licity that uses silicon contents exceeding 20%. In addition to the established properties, this binder enables higher capacity, increased number of charge/discharge cycles and reduced charging times
• In May 2022, Nano one Materials Corp acquired a 2,400 TPY capacity LFP materials plant from Johnson Matthey, a chemical manufacturer.
• In May 2022, Battery Maker Amprius Technologies was publicly merged with Kensington Capital to raise an equity capital 0f 250 million dollars.
• In January 2022, Entek Manufacturing announced the acquisition of long-time business partner Adaptive Engineering & Fabrication (AEF).
• In May 2021, CATL and Daimler Truck AG announced the joint partnership to supply lithium ion battery packs for the Mercedes-Benz Actros LongHaul battery-electric truck, which is planned to be ready for series production in 2024.
• In April 2021, SGL Carbon signed a collaboration agreement with Altech Chemicals to develop high purity alumina-coated (HPA) graphite materials for use by the lithium-ion battery industry in anode application.
• In March 2021, SGL Carbon received around USD 51 million funding under IPCEI (Important Project of Common European Interest) for developing and industrialization of anode materials made of synthetic graphite for use in lithium-ion batteries.
• In March 2021, SK IE Technology Co. Ltd, a subsidiary of SK Innovation, decided to build two new Polish plants for separators in Poland.
• In March 2021, Asahi Kasei, a manufacturer of lithium-ion battery separators, plans to increase its production capacity of Li-ion battery separators at its plant in Miyazaki, Japan. ​

Regional Market Analysis

The global electric vehicle battery cells and packs materials market report is segmented based on geography into North America, including the United States, Canada, Mexico, and the Rest of North America; Europe, including Germany, France, United Kingdom (UK), Italy, Russia, and the Rest of Europe; Asia Pacific (APAC) including China, India, Japan, South Korea, Australia, Indonesia, and Rest of APAC; South America including Brazil and Rest of South America; and the Middle East and Africa including Saudi Arabia, Brazil, Nigeria, South Africa, and other countries.

Asia-Pacific is expected to be the leading region in the electric vehicles battery cells and packs materials market during the forecast period, followed by North America, Europe, the Middle East, and South America.

Asia Pacific:

The Asia Pacific region has countries that have both developing and established battery markets. For instance, countries such as China, India, South Korea, Japan, Australia, and others have an established large-scale ESS market, EV market, and others are increasing the demand for electric vehicle battery cells and materials market.

The Asia Pacific is expected to be the largest electric vehicle battery cells and materials market region during the forecast period. With a target to reduce emissions, energy storage systems demand will rise in the power generation sector, and electric vehicle demand will increase in transportation, especially in China, Japan, India, and others.

Blackridge Research's Electric Vehicle Battery Cells and Packs materials Market report provides insights into the current market demand environment and prognosis.

The study thoroughly examines the many factors that impact the development of Electric Vehicle Battery Cells and Packs materials. The study also comprehensively analyses the lithium ion battery materials by segmenting it based on region (Asia Pacific, North America, Europe, South America, Middle East, Africa), based on materials (Cathode, Anode, Separators, Binders, Thermal Interface Materials and Others).

The report also discusses current and future market possibilities, trends, advancements, the effect of Covid-19 and the Ukraine and Russian War on the electric vehicle battery cells and packs materials market, essential developments, regions, and segments poised for the fastest growing competitive landscape. Further, the electric vehicle battery cells and pack materials market size, and demand forecast, growth rates will also be provided in the report.