The worldwide lithium and lithium ion battery electrolyte market size is expected to reach USD 5,281.6 million in 2024. The sector’s progress is expected to be at a CAGR of 12.2% from 2024 to 2034. By the end of the forecast period, the lithium and lithium ion battery electrolyte industry value is slated to hit USD 16,628.9 million.
The rise in sales of lithium-ion batteries is powered by growing sustainability concerns and government concessions. The automotive sector is going through a green revolution, with surging sales of electric vehicles (EVs). More electric vehicle sale helps speed along the demand for lithium ion battery electrolytes as well.
Governments all over the world are playing a vital part in the development of demand. Favorable government disposition toward the sale of lithium-ion batteries is boosting the sector forward. Governments are looking to cut down on fuel emissions and thus both electric vehicle and lithium-ion battery sales are booming.
Global Lithium and Lithium Ion Battery Electrolyte Industry Assessment
| Attributes | Description |
|---|---|
| Estimated Lithium and Lithium Ion Battery Electrolyte Market Size (2024E) | USD 5,281.6 million |
| Projected Lithium and Lithium Ion Battery Electrolyte Market Value (2034F) | USD 16,628.9 million |
| Value-based CAGR (2024 to 2034) | 12.2% |
Electricity has become an indispensable part of people’s lives and day by day the power demand is only increasing. Initiatives to have electricity reach remote and rural parts are also seeing demand for power climb up.
More demand for energy also leads to greater demand for energy storage. Lithium-ion batteries are proving to be a boon in this regard. The batteries are proving to be a suitable unit for storing excess energy and thus demand for lithium and lithium ion battery electrolytes is shooting up.
Smartphones, laptops, digital cameras, and more are electric gadgets that are making use of lithium batteries at a climbing rate. Electric gadgets are taking more hold of people’s lives and thus the demand for lithium batteries is reaching unprecedented heights.
Traditionally, liquid lithium ion batteries have won over consumers. But, increasingly, solid lithium-ion batteries are earning the taste of end users. The lightweight nature of these batteries is a prime reason for the rise in their estimation.
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Lithium Battery Sector Taking Flight with the Rise of Electric Aircraft
The demand for lithium ion batteries is not limited to the ground. With rising concern over the fuel emissions of traditional aircraft, electric aircraft are being tested at a rapid pace.
While the majority of electric aircraft are still in the testing phase, the future is considered bright. The nascent nature of electric aircraft shows potential and has varied uses for both liquid and solid lithium batteries. The lithium and lithium ion battery electrolyte market’s current scenario and prospects are thus soaring due to new avenues for growth like electric aircraft.
Energy Storage Capabilities of Lithium Batteries Push Demand in Solar Sector
The lithium and lithium ion battery electrolyte market's latest trends indicate a growing affinity for the product in the solar sector. The use of batteries for storage is not limited to traditional modes of energy. Solar power is also being stored in lithium-ion batteries.
Use in the solar-powered sector is also another way through which lithium batteries are helping in the sustainability fight. With more public sector operating units as well as buildings now running on solar energy, the role of lithium-ion batteries is elevated.
Healthcare Sector is Benefitting from Lithium Batteries
One of the niche growth factors influencing the lithium and lithium ion battery electrolyte market is its usage in pacemakers. With more patients suffering from heart problems due to factors like the rising geriatric population, unhealthy eating, and genetic disorders, there is a greater need for pacemakers. The increasing need for pacemakers also adds to the demand for lithium-ion batteries.
Bulky Nature of Batteries to be a Drawback for Many
While lithium batteries are being adopted in increasing measures, one of the key challenges for the lithium and lithium ion battery electrolyte market is the bulky nature of these batteries. With an increasing focus on making vehicles lightweight, heavy batteries are not optimal. However, manufacturers are addressing this concern by making batteries lightweight, especially solid ones.
The lithium and lithium ion battery electrolyte industry size was USD 3,413.6 million in 2019. Throughout the historical period, the industry developed at a CAGR of 7.5%, reaching USD 4,892.4 million in 2023.
The industry’s regular upward trend was halted by the pandemic in the historical period. Manufacturing factories had to face closure, putting strain on stakeholders. With restrictions on heading out, electric vehicle sales too faced difficulty. However, with the effects of the pandemic receding, the sector was back on the right track.
The lithium and lithium ion battery electrolyte market future forecast is scheduled to be much more fruitful, with a higher CAGR predicted in the next ten years as compared to the historical period. Several factors are responsible for the pickup of the industry.
In light of the increased threat of home robberies and invasions, home security has become a prime area of concern for families. Lithium-ion batteries are also benefitting from the increased adoption of home security systems. The increased preference for smart home security systems is also beneficial to the demand for lithium batteries.
Increased use in electric vehicles and power storage are prime pillars of the surging demand for these batteries. With more demand for power backup sources, the forecast period is set to see a rapid increase in lithium battery demand in the power sector.
Principal Consultant
A few Tier 1 companies that have a notable presence in the landscape include LG Chem, Panasonic Corporation, Samsung SDI, and BYD Company Limited. Tier 1 companies concentrate on both electric vehicle and power generation applications of lithium-ion batteries, as emphasized by LG Chem, Panasonic Corporation, and Samsung SDI. Meanwhile, BYD Company Limited produces both lithium batteries and the electrical vehicles that use them.
Tier 2 companies include Johnson Matthey, Daikin Industries, Ltd., and GS Yuasa Corporation. While lacking the financial resources of the tier 1 companies, tier 2 companies still flourish in the sector. A common theme among these companies is their strong emphasis on the manufacture of components that make up lithium batteries, most prominently lithium electrolytes.
A handful of Tier 3 companies prominent in the sector include American Battery Technology Company (ABTC), Nano One Materials Corp., and Dalmia Bharat Sugar and Industries Limited. In the absence of substantial financial resources, these companies focus locally and on niche segments, looking to lower the cost of manufacturing. For example, ABTC recycles batteries sustainably.
Apart from the lithium and lithium ion battery electrolyte market, an in-depth analysis has been done on two other related markets. The industries are the lithium compound and the lithium iodide market.
Lithium Compound Industry Assessment:
Lithium compound usage is widening as a result of the number of end-use industries increasing for the product. Automobile, aerospace, and other industries are all making use of lithium compounds more. The increasing need for lithium ion batteries is also fueling the lithium compound sector.
| Attributes | Description |
|---|---|
| Related Market | Lithium Compound Market |
| CAGR (2024 to 2034) | 21.3% |
| Growth Factor | Use of lithium compound in air purification systems |
| Opportunity | Companies are investing in lithium hydroxide for use in air purification systems |
| Key Trend | Booming healthcare sector to surge the use of lithium compounds |
Lithium Iodide Industry Assessment:
A result of the increased reverence shown towards the chemical sector by governments is the propelling of the lithium iodide sector. Increased funding for research labs from both public and private sources is helping the industry’s cause, as healthcare institutions have more leeway to procure the chemical. The pharmaceutical sector is also helping the demand for lithium iodide.
| Attributes | Description |
|---|---|
| Related Market | Lithium Iodide Market |
| CAGR (2024 to 2034) | 5% |
| Growth Factor | Increasing use of lithium iodide in medical applications, such as X-rays and MRI |
| Opportunity | Leading players focus on introducing high-temperature batteries for use in pacemakers |
| Key Trend | Rising agrochemical application |
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The consumer electronics sector in Asia Pacific is booming as electronic gadgets continue climbing in importance in the lives of people. This is complemented by the booming automobile industry in the region, especially in countries like China and Japan.
North America being at the forefront of EV technology is helping the sector’s prospects in the region. Meanwhile, in Europe, sustainability concerns help the demand for lithium-ion batteries to surge.
| Countries | CAGR 2024 to 2034 |
|---|---|
| China | 13.6% |
| United States | 6.8% |
| United Kingdom | 4.7% |
| India | 18.1% |
| Australia | 4.6% |
The lithium and lithium ion battery electrolyte market is penned in to progress at a CAGR of 6.8% in the United States. The automobile sector in the United States is gargantuan. The substantial automobile industry is also including electric vehicles at a rapid pace.
Several manufacturers have pressed the accelerator on electric vehicle production as sustainability initiatives take a grip on both the automobile realm and consumers. Thus, a conducive environment is created for the rise in demand for lithium-ion batteries.
Experimentation and innovation are also seeing prospects flower for the industry. For example, a new lithium battery was developed from organic sources by a group of researchers at the Massachusetts Institute of Technology (MIT).
The lithium and lithium ion battery electrolyte market is set to register a CAGR of 18.1% over the forecast period in India, making it a highly lucrative country for the industry. Indians have become obsessed with electronic gadgets. An increasing number of people, across all age groups, are depending on consumer electronics for both work and recreation.
Government schemes like the Make in India initiative are aiding in the manufacturing of electronic equipment in India. As domestic production ramps up, lithium-ion batteries are being used in increasing measures.
Electric vehicle sales are reaching new heights in the country as, with the increasing proliferation of noisy traditional vehicles on the street, several consumers prefer quiet electric vehicles.
The lithium and lithium ion battery electrolyte market’s progress in the United Kingdom is put forth to happen at a CAGR of 4.7% over the forecast period. Manufacturers in the United Kingdom are looking at product innovation to stand out from the competition and offer diversity to consumers. This experimentation extends from small electronic gadgets like watches to whole aircraft carriers.
The country has become a breeding ground for electronic aircraft testing, with both the government and consumers in the country driving towards sustainability. The country is also seeing local entities compete with giants of the sector for a share of the demand, creating a competitive environment in which startups are able to thrive.
The section below provides an in-depth analysis of the two dominant segments in the target sector. Segmentation of the categories would enable businesses to make innovative investment decisions.
In terms of product type, the lithium-based segment is estimated to showcase a share of 84.8% in 2024. In the same year, the consumer electronics end-use segment is projected to hold a 10.8% share.
Lithium-based batteries are expected to take up 84.8% of the industry share in 2024. Most electric vehicles use lithium as the source of their battery for the reason that it provides high density, which is highly desired by EV manufacturers.
| Segment | Lithium-based (Product Type) |
|---|---|
| Value Share (2024) | 84.8% |
Lithium is also favored for its long shelf life. With consumers of electronic gadgets now focused on having batteries that last an extended period, especially smartphone and laptop owners, the use of lithium is favored.
Lithium-based batteries have also proven to be conducive to fast charging applications, further endearing them to consumers. Technological innovations have also ensured that batteries are safe to use. Thus, lithium is the preferred material in batteries.
The consumer electronics sector is anticipated to account for 10.8% of the industry share in 2024. Consumer electronics like smartphones, laptops, and tablets have become inseparably linked with the lives of consumers. From work to playtime, it is consumer electronics that are being resorted to. Thus, the application of lithium ion batteries in the consumer electronics sector is booming.
| Segment | Consumer Electronics (End-use) |
|---|---|
| Value Share (2024) | 10.8% |
The sheer diversity of consumer electronics also helps lithium-ion batteries to maintain their application in the segment. From wireless headphones to gaming consoles to heart monitors, the need for lithium-ion batteries is widening in the segment. Thus, consumer electronics remains the top application of these batteries.
The development of lithium and lithium ion battery electrolytes involves significant capital investment on the part of manufacturers. Hence, the industry is dominated by a few giants, who have already invested heavily in battery production and have accumulated expertise in their making. However, it does not exclude the sector from the presence of a considerable number of medium and small-scale enterprises.
Medium and small-scale enterprises focus on procuring investment to increase their capabilities. A similar strategy is also undertaken by startups looking to make a name for themselves in the sector. Both private and public investment are sought by these enterprises.
Product innovation is given high precedence by stakeholders. Keeping the product line moving is given attention by manufacturers as newer improved versions of the product are constantly at the service of end users. Product innovation is undertaken with the help of changing technology. To get their hands on the latest technology as well as experiments, manufacturers often tie up with research institutes.
One of the foremost companies in the sector includes Mitsubishi Chemical Corp. The company’s focus on providing chemicals for a whole range of lithium batteries has helped it emerge as one of the prime companies end users seek.
Industry Updates
Based on product type, the industry is segmented into lithium-based, sulfide-based, polymer-based, oxide-based, and others.
Based on form, the industry is divided into liquid, solid, and gel.
Based on end-use, the industry is segregated into automotive, consumer electronics, power and energy, and general industrial.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The industry is estimated to be worth USD 5,281.6 million in 2024.
The industry is expected to witness a CAGR of 12.2%.
The industry is set to reach USD 16,628.9 million by 2034.
Mitsubishi Chemical Corp. and Shenzhen Capchem Technology Co. Ltd.
India is set to show a CAGR of 18.1% in the forecast period.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Form 6.2. Product Type 6.3. End Use 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Form 7.1. Liquid 7.2. Solid 7.3. Gel 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 8.1. Lithium-based 8.2. Sulfide-based 8.3. Polymer-based 8.4. Oxide-based 8.5. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 9.1. Automotive 9.2. Consumer Electronics 9.3. Power & Energy 9.4. General Industrial 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia 10.5. East Asia 10.6. Eastern Europe 10.7. Middle East & Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Form, Product Type, and End Use for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Mitsubishi Chemical Corp. 20.2. Shenzhen Capchem Technology Co Ltd 20.3. Shanshan Technology 20.4. Soulbrain MI 20.5. Guangzhou Tinci Materials Technology Co. 20.6. TOMIYAMA PURE CHEMICAL INDUSTRIES, LTD. 20.7. GuangDong JinGuang High-Tech Co., Ltd 20.8. Panax Etec Co Ltd 20.9. UBE Industries 20.10. Zhangjiagang Guotai-Huarong New Chemical Materials Co., Ltd. 20.11. NEI Corporation
Chemicals & Materials
December 2016
REP-GB-2292
October 2022
288 pages
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Lithium and Lithium Ion Battery Electrolyte Market
