According to data compiled by Transparency Market Research, the global lithium-ion battery market was valued at $29.68 billion in 2015 and is expected to reach $77.42 billion by 2024, while growing at a CAGR of 11.6 percent. The market is primarily driven by the demand for consumer electronics and grid energy, as well as industrial and automotive demand.
Currently, the consumer electronic segment contributes to almost half of the global market revenue. The growing number of smartphones is currently the driver of the market, but that is expected to shift once electric vehicles (EVs)become more widely available. The electric vehicle industry is expected to contribute heavily to the battery market as many countries begin to shift to a more environmentally efficient alternative.
Lithium-ion batteries are highly attractive to manufacturers because of their small compact size and ability to hold a large charge. The batteries also are rechargeable and recyclable, offering a cheaper and more eco-friendly solution. Due to their rechargeability, lithium-ion batteries are used in electric vehicles, allowing for zero-emission driving. Currently, government regulators are aggressively pushing out the deployment of electric vehicles due to rising environmental concerns, increasing the demand for their batteries. The surge in demand is outpacing the readily available supply, which has resulted in increasing prices for lithium-ion battery components.
“The battery industry is expanding capacity to meet the forecast EV demand, which is being mirrored by converters’ capacity. The level of investment in the raw material part of the chain (hard rock mines and brines) is accelerating, but needs to accelerate faster,” said David Whitten, head of global natural resources and a fund manager at Janus Henderson Investors.