Lithium-Ion Battery Market Analysis

Lithium-Ion Battery Market Analysis

The separator component is expected to hold more than 3% of the lithium-ion battery market share in 2032. Separators act as a key component in Li-ion batteries separating the anode and cathode to prevent the risk of short circuits. They are essential in ensuring several performance parameters in batteries, such as safety, cycle life, as well as energy and power density. The surging demand for next-generation Li-ion batteries will also influence the adoption of separators.

NCA chemistry segment crossed USD 5 billion in 2022. The growing preference for NCA chemistry components can be attributed to their high energy density and shelf-life as compared to NMC batteries. NCA batteries are also increasingly used in higher-end long-range variants of Tesla Model S, Model X, Model 3, and Model Y.
 

The automotive application is poised to witness nearly 17% CAGR between 2023 and 2032. The rising awareness among consumers regarding the environmental impacts of internal combustion engine (ICE) vehicles powered by fossil fuels is driving the adoption of battery electric vehicles (BEVs), and hybrid electric vehicles (HEVs). Furthermore, the deployment of supportive government regulations and policies for empowering the EV sector will proliferate the demand for Li-ion batteries.
 

Asia Pacific lithium-ion battery market size is anticipated to surpass USD 100 billion by 2032. APAC is home to a massive automobile sector with increasing demand for personal vehicles across robust population countries including India, and China. Moreover, the surge in government efforts pertaining to affordable mobility solutions for middle-income groups is encouraging automakers as well as foreign EV manufacturers to enter the region.