Battery Materials is a fast-growing industry that is leading the global energy transition due to electric vehicle uptake, renewable energy storage, and portable electronics development. The International Energy Agency (IEA) reports that lithium demand once again outran supply in 2022, as it did in 2021, with a 180% increase in production since 2017. In 2021, around 60% of lithium, 30% of cobalt, and 10% of nickel went into producing EV batteries. Our review of Electrolyte Materials looks at the main chemical components that aid ion transport and battery performance.

The electrolyte division is a specialized part category in the construction of lithium-ion batteries, providing ionic conductivity between the anode and cathode materials while being chemically stable under operating conditions. Supporting battery material segments are lithium cobalt oxide, worth more than USD 5.15 billion in 2023, rising at more than 9.1% CAGR from 2024 to 2032, based on growing electric vehicle demand. The portable lithium iron phosphate segment was USD 15.5 billion in 2024, projected to rise at 16.9% CAGR from 2025 to 2034.

Emerging battery technologies, such as solid-state batteries, exceeded USD 1.1 billion in 2024. They are projected to grow at a rate of 31.1% each year from 2025 to 2034. This growth is fueled by the rising adoption of electric vehicles and investments in batteries that are high energy density, safe, and quick to charge. Recycling efforts are also growing significantly. In 2024, lithium-ion battery recycling will exceed USD 7.2 billion and will expand at more than 20.6% each year from 2025 to 2034.