The
battery electrolyte market is projected to grow from USD 4.20 billion in 2018
to USD 6.18 billion by 2023, at a CAGR of 8.1% from 2018 to 2023. Increasing
adoption of EV to reduce carbon footprint, rapid increase in automotive sales,
high demand from replacement market of automotive batteries, and increasing
share of alternative energy sources in the energy mix are the key factors
driving the growth of the battery electrolyte market. APAC is home to some of
the leading lithium-ion battery manufacturers in the world, including CATL
(China), BYD (China), LG Chem (South Korea), Panasonic (Japan), and Samsung SDI
(South Korea). These lithium-ion battery manufacturers are keeping the demand
for lithium-ion battery electrolyte high in the region. Mitsubishi Chemical
Corporation (Japan), Ube Industries (Japan), Shenzhen Capchem Technology Co.,
Ltd. (China), Johnson Controls (US), Guangzhou Tinci Materials Technology Co.,
Ltd. (China), GS Yuasa Corporation (Japan), 3M (US), BASF SE (Germany), LG Chem
(South Korea), and American Elements (US) are some of the leading players operating
in the battery electrolyte market.
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These
leading players have adopted the strategies of expansions, acquisitions, and joint
ventures to cater the increased demand for battery electrolyte from various battery
manufacturers.
In
March 2018, Shenzhen Capchem partnered with Eve Energy to build a production
line to manufacture chemicals used in lithium-ion batteries. This new plant
will produce 20,000 tons of lithium-ion battery electrolyte annually. With this
development, the company will focus on expanding the production capacity to
sustain its market leadership in China. Shenzhen Capchem is focusing on
expansion as the key strategy for growth. The company is planning to set up a
LiB electrolyte factory in Jinmen City, Hubei Province (China) with a capacity
of 20,000 metric tons and another LiB electrolyte factory in Poland with a
capacity of 20,000 metric tons. In October 2017, the company acquired BASF’s
electrolyte manufacturing facility located in Suzhou, China. With
this acquisition, the company has further strengthened its foothold in China.
Shenzhen is among the leading companies in the China lithium-ion battery
electrolyte market.
In
October 2016, Mitsubishi Chemical Corporation entered into a joint venture
agreement with Ube Industries. The two companies tied up for their lithium-ion
battery electrolyte business in China. With this, the companies can capitalize
on the growing demand for lithium-ion batteries from the consumer electronics
and electric vehicles industries.
The
battery electrolyte market is projected to grow from USD 4.20 billion in 2018
to USD 6.18 billion by 2023, at a CAGR of 8.1% from 2018 to 2023. Improving
performance of lithium-ion batteries and dropping USD/KWh prices of batteries are
expected to create opportunities for the battery electrolyte market across the
globe.
Electric
Vehicles Initiative (EVI) is a multi-government policy to accelerate the
adoption of electric vehicles worldwide. The current EVI members list includes Canada,
China, Finland, France, Germany, India, Japan, Mexico, the Netherlands, Norway,
Sweden, the UK, and the US. These countries have set an ambitious target to
change 30% of their total vehicles fleet to electric vehicles. Investments are
being done in the lithium-ion battery electrolyte market owing to the
increasing production of lithium-ion batteries.
Based
on battery type, the lithium-ion battery electrolyte segment of the battery
electrolyte market is projected to grow at a higher CAGR from 2018 to 2023. The
increased production of lithium-ion batteries for EV is the main reason for the
growth of this segment.
Based
on state of electrolyte, the liquid lithium-ion battery electrolyte segment of
the battery electrolyte market is projected to grow at the highest CAGR from
2018 to 2023. Lithium polymer pouch batteries, which consume liquid electrolyte,
are widely used in portable devices such as cellphones, laptops, digital
cameras, etc.
The Asia
Pacific, North America, and Europe regions are the major markets for battery
electrolyte due to the presence of leading battery manufacturers in these regions.
Various leading players have adopted the strategies of expansions,
acquisitions, and joint ventures, to meet the
growing demand for battery electrolyte from various leading battery
manufacturers in these regions. The battery electrolyte
market is witnessing high growth as various market players have expanded their
areas of operations and production capacities to strengthen their market
positions. Future trends in the market would largely depend on the regulations,
availability of raw materials, and investments in end-use industries of
batteries.
