DUBLIN, April 19, 2023 /PRNewswire/ — The “Battery Electrolyte Market By Battery Type, By Electrolyte Type, By End-Use, and By Region Forecast to 2030” report has been added to ResearchAndMarkets.com’s offering.
The global market size of battery electrolyte was valued at USD 6.56 billion in 2021, with a projected revenue compound annual growth rate (CAGR) of 17.3% during the forecast period.
The increasing demand for consumer electronics, such as fitness gadgets, wireless devices, and the growing popularity of Bring Your Own Device (BYOD) and work-from-home culture, which has led to increased use of laptops, tablets, and smartphones, are driving the revenue growth in the market.
Manufacturers are transitioning from liquid to solid electrolytes, which could significantly impact the performance and safety of Electric Vehicle (EV) batteries. For instance, Factorial Energy has introduced a 40 Ah battery cell with solid electrolyte technology for EVs. This emerging technology is heat resistant and has the potential to outperform lithium-ion batteries with liquid electrolytes, enabling safer operation and improved performance. Solid-State Batteries (SSBs), which are lithium-ion batteries built with solid electrolytes, are being commercialized for use in electric vehicles and portable devices.
One of the advantages of SSBs is that they eliminate the risk of battery explosions in EVs and mobile phones. Additionally, the stability and barrier properties of solid electrolytes allow for the safe use of high-energy anode materials like silicon and lithium metal, which can result in superior performance compared to current lithium-ion batteries.
Lithium-based battery technology currently dominates the battery electrolyte market for most applications in 2021, with EVs projected to consume approximately 225 GWh of capacity. However, the development of low-/no-lithium battery technologies is expected to result in more affordable products with higher energy densities than Li-ion batteries. Nevertheless, battery manufacturers may face challenges in making significant changes to their current operations due to existing investments.
Meeting the projected 20-fold increase in demand for high-performance batteries over the next 10-15 years would require substantial efforts in developing fabrication facilities, personnel training, and raw material sourcing to sustain the current supply chains. Gradual advancements, such as shifting from graphite to silicon (Si) or from nickel (Ni) to iron (Fe), are being pursued in the industry.
There is also a surge in research on transitional materials and processes that can be easily integrated into Li-ion battery production lines to meet the growing demand. These advancements include new electrode materials like silicon and metallic lithium anodes, high-nickel cathodes, as well as new liquid, solid-state, and hybrid electrolyte formulations.
Rapid advancements in battery technologies and increasing research activities for the development of innovative battery electrolyte solutions
The market is experiencing revenue growth due to rising research and development (R&D) activities and demand for lithium-ion battery electrolytes. For instance, researchers at the University of Tokyo and the Nagoya Institute of Technology have discovered a new mechanism for stabilizing lithium metal electrodes and electrolytes in lithium metal batteries, which has the potential to significantly improve battery energy density. Lithium metal batteries are considered a promising technology for high-energy-density storage devices.
Additionally, researchers from MIT and Caltech have found a method to increase the usable lifetime of non-rechargeable battery systems by at least 20% to 50%, making them more suitable for implantation in medical devices such as pacemakers. These non-rechargeable batteries have higher energy capacity than rechargeable equivalents, making them a preferred power source.
Restraint: High cost, availability shortage, and negative environmental impact
The manufacturing process of electrolytes involves hazardous chemicals that are harmful to the environment and individuals. Ongoing advancements in the electrolyte industry and stringent laws on carbon emissions, lead use, safe disposal, and renewable energy sources are boosting new product development attempts in the battery electrolyte market but are also posing challenges to revenue growth.
Despite significant investments in solid-state batteries (SSBs), there are still scientific difficulties to overcome in their practical application. Additionally, the poor reversibility of zinc anodes in aqueous electrolytes limits the practical application of zinc-ion batteries, restraining market revenue growth.
Lithium-ion batteries also have underlying issues such as reduced power density and longevity. Furthermore, the scarcity of rare materials such as lithium and cobalt, which are required for battery production, drives up their prices and may result in geopolitical concerns. Combustibility of electrolytes used in standard lithium-ion batteries can also pose risks of explosions or flames, causing harm to users.
Battery Type Outlook:
The global battery electrolyte market is segmented into lithium-ion, lead acid, flow battery, and others based on battery type. The lithium-ion battery segment accounted for the largest revenue share in 2021. Lithium-ion batteries are in high demand in various industries such as electrical & electronics, automotive, aviation, healthcare, energy and power, due to their high capacity and lightweight characteristics. The expansion of R&D activities to improve the lifespan, energy density, charging speed, and safety of lithium-ion battery electrolytes is a significant factor driving market growth. Researchers are focusing on developing non-flammable electrolytes, such as aqueous Li-ion batteries, polymer electrolytes, ceramic solid electrolytes, and systems with high fluorine content, to ensure the safe use of these batteries.
Electrolyte Type Analysis:
The market is categorized into three segments based on electrolyte type: liquid electrolyte, solid-state electrolyte, and gel electrolyte. In 2021, the liquid electrolyte segment dominated the market in terms of revenue, mainly due to its cost-effectiveness and safety features. Researchers from Pohang University of Science and Technology (POSTECH) have developed a stable aqueous zinc-ion battery that uses water as an electrolyte, offering inherent safety, non-toxicity, and high power output. Aqueous battery packs with zinc anodes are gaining attention as a promising alternative to traditional lithium-ion batteries. The electrochemical stability of the aqueous zinc-ion battery was further improved by applying a protective polymer layer on the zinc anode to prevent electrode corrosion and enhance toughness.
The market is segmented based on end-use into automotive, consumer electronics, healthcare, and others. In 2021, the automotive segment held the largest revenue share, driven by the increasing demand for innovative battery electrolyte solutions used in the production of electric vehicles. There is also a growing trend towards the use of bio-based electrolytes due to rising awareness and demand for environmentally friendly products with lower carbon emissions. Governments in several countries are supporting the use of electric and hybrid vehicles to combat environmental pollution. Additionally, the demand for battery electrolytes used in the production of lithium-ion batteries is also contributing to the growth of this segment. Furthermore, innovators of solid-electrolyte technology are forming partnerships with automakers such as BMW, GM, Toyota, and Volkswagen. For example, VW has announced a three-fold increase in its investment of USD 300 million in QuantumScape, a U.S.-based solid-state battery start-up.
Asia Pacific: The Asia Pacific market accounted for the largest revenue share in the forecast period. Battery manufacturing companies in this region, particularly in China and Korea, are investing in research and development to reduce dependency on current technologies and develop new types of batteries, such as sodium ion cells and lithium sulfur cells. China is currently the world’s top producer of anode, electrolytes, and battery cells, and rising demand for solid-state batteries (SSBs) is driving further growth in the market. Companies like CATL and LG Energy Solution are planning to start production of advanced batteries with new electrolyte technologies. This region is also witnessing increased investments in refining facilities for battery metals, making it a major player in the global battery electrolytes market.
North America: The North America market accounted for the second-largest revenue share in 2021. The region is witnessing increasing investments by various companies in the development of innovative battery electrolytes, particularly for SSBs. Startups like Solid Power in the US are working on sulfide electrolyte-based SSBs, with support from partners and investors like BMW, Ford, Hyundai, and Samsung. Commercial production of these advanced batteries is expected to begin in 2026 in North America. Additionally, the demand for battery electrolytes is also driven by the widespread use of lithium-ion batteries in battery energy storage systems and electric vehicles (EVs).
Europe: The Europe market accounted for a significant revenue share in 2021, driven by advanced infrastructure and increasing usage of battery electrolytes in various end-use sectors, such as consumer electronics. European companies are focusing on developing new battery technologies that utilize readily available and affordable elements like sodium and sulfur, which could help ease supply bottlenecks and reduce dependency on China’s battery production. This trend is expected to promote mass-market adoption of electric vehicles, further contributing to the growth of the battery electrolytes market in the region.
Overall, the Asia Pacific is currently the largest market for battery electrolytes, with significant growth potential in North America and Europe as well. Rising demand for advanced batteries, increasing investments in research and development, and efforts to reduce dependency on current technologies are driving the growth of the market in these regions.
Key Topics Covered:
Chapter 1. Market Synopsis
Chapter 2. Executive Summary
Chapter 3. Indicative Metrics
Chapter 4. Battery Electrolyte Market Segmentation & Impact Analysis
Chapter 5. Battery Electrolyte Market By Battery Type Insights & Trends
Chapter 6. Battery Electrolyte Market By Electrolyte Type Insights & Trends
Chapter 7. Battery Electrolyte Market By End-Use Insights & Trends
Chapter 8. Battery Electrolyte Market Regional Outlook
Chapter 9. Competitive Landscape
Chapter 10. Company Profiles
- Mitsubishi Chemical Corporation
- UBE Corporation
- Guangzhou Tinci High-tech Materials Co. Ltd.
- LG Chem
- Johnson Controls
- BASF SE
- GS Yuasa International Ltd.
- Nexeon Limited
- Targray Industries Inc.
For more information about this report visit https://www.researchandmarkets.com/r/pyedo1
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