Macroeconomic Overview & Key Drivers of Battery Electrolyte Market Industry

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.