Global Battery Metals Market by Application (Electronic Devices, Stationary Battery Energy Storage, EVs, SLI), by Product (Cobalt, Nickel, Lithium) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global battery metals market was worth USD 14.8 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 2.4%) between 2020 and 2027. The growing demand for battery metals in the automotive sector and stationary battery energy storage (BES) are driving the market. Global EVs industry is expanding at an accelerating pace across the globe. This is driving market growth as batteries make up the largest portion of EVs. They will soon account for 40.0% of total automotive manufacturing costs.

Global battery production is concentrated in a few countries, and the U.S. is among them. The country's market for battery metals is growing due to technological advancements and the presence of major players like EnerSys, Panasonic, and Tesla. Production capacity is increasing due to the growing demand from the application industries. KORE Power, for Mark 1 energy storage systems, announced in October 2019 that it would build a 10 GWh battery manufacturing plant in the U.S.

One drawback of batteries is likely to slow down the growth of the market. It is its waste. Automotive manufacturing is booming worldwide as more countries adopt EVs. This will eventually lead to increased battery production and the waste it creates that can have harmful effects on the environment. The market for battery metals is facing a problem in the disposal of batteries. This disadvantage can be overcome by a growing focus on second-life EV batteries.

While EV batteries like lithium-ion can last for ten years, they tend to fail after five years due to high operating temperatures, changing discharge rates and hundreds of partial cycles each year. These batteries can be reused or recycled, instead of being disposed. If these batteries are not eligible to be used for EVs within a certain time period, they can still be used in other applications, such as stationary storage. Stationary storage devices are another important driver of the market for metals.

Despite every effort to overcome any disadvantages in the past or for the future, market growth was hampered by the coronavirus epidemic in 2020. The pandemic had an impact on battery production and metal usage, as well as affecting supplies due to restrictions regarding transportation. Prices of battery metals fluctuated due to the pandemic. The low demand for nickel, zinc and copper led to a drop in the prices of these metals in 2020.

However, lithium and cobalt prices saw an increase in February 2020 due to low production and a rise in logistics costs during lockdown and adequate inventory due to the oversupply in 2019. The forecast period will see a decline in lithium and cobalt prices due to high demand for battery and lower cobalt usage.

Application Insights

In 2019, starter, lighting and ignition (SLI), accounted for the largest revenue share at more than 27.0%. SLI has been a key application area for battery metals in the past few years. The SLI battery is used to start and ignite the engine. It also provides electricity for the vehicle. Because of its high power density, it is vital for starting engines. It requires large currents for short periods (around 300 amps for a few seconds). This application segment will see the lowest growth rate due to the declining demand for traditional vehicles which are being replaced with electric vehicles.

The fastest-growing segment in the market for metals is the electric vehicle segment. There are four types of EVs: hybrid, plug-in, full EVs and commercial. Each group has its own set of requirements. Full EVs, for example, do not require an internal combustion engine and therefore need large batteries. EVs use two main batteries: nickel-metal hydride and lithium-ion.

Another application segment is stationary battery energy storage. This market is forecast to grow at a rapid pace over the forecast period. The significance of stationary battery storage lies in its ability to smoothen the demand for power from Renewable Energy sources like wind and solar. It stores electricity from renewable sources to be used in the absence of solar rays and wind. BES is a product that allows for easy consumption and does not rely on fossil fuel power plants. For stationary energy storage, lithium polymer batteries are the most popular.

Product Insights

In terms of market volume for battery metals, Lithium was the dominant player with a greater than 30% share in 2019. Over the forecast period, there will be an increase in demand for lithium-ion battery metals due to increased demand from the EV industry as well as consumer electronics. Manufacturers have increased their production capacity to meet growing demand for lithium-ion batteries. Manufacturers such as LG Chem and NorthVolt are involved in the production of lithium-ion cells. They have an annual capacity of between 70 and 60 GWh and 32 GWh, respectively. These projects will be completed by 2021.

Due to its high demand for EV batteries, nickel is likely to experience the fastest growth in the battery metals market during the forecast period. In May 2019, the nickel quantity in the world rose by 57.0% compared to May 2018, due to an increase in EV sales, rapid adoption of nickel cathode chemicals like NCM 622 and 523, as well as NCM 811. Nickel-cadmium and nickel -metal-hydride batteries have been used extensively since the 1980s. Nickel's ability to deliver higher density and greater storage capacity at a low cost is a major reason for its use in batteries.

In 2019, Cobalt accounted for the second-largest market share in the battery metals market. Because of its high conductivity and stability across the charge cycle, it is used in lithium-ion battery cathodes. The metal will see the lowest CAGR over the forecast period due to its high price, which is driving manufacturers to choose its alternatives. General Motors, for example, announced in March 2020 that it would reduce cobalt usage in its new batteries systems by 70% and increase the nickel and aluminum content to compensate. This is an attempt to lower the overall production cost. In 2019, cobalt was approximately 3x and 22x more expensive than nickel or aluminum, respectively.

Regional Insights

Asia Pacific was the dominant market, accounting for 87.7% of revenue in 2019. This trend will likely continue for the forecast period. China is the largest manufacturer of batteries in the world, accounting for this share. China's dominance in the supply chain is responsible for China's manufacturing capabilities. China holds more than 20% of the global market share for battery metals. It also has the largest capacity to produce battery-grade raw materials chemically, at around 80.0%. It is the driving force behind the global automotive industry's future, post Covid-19.

North America was second in terms of revenue and held a greater than 7.0% share in the 2019 market for battery metals. The U.S. is North America's largest battery producer, making it the country's key consumer of metals. The country is seeing an increase in production capacity due to the EV industry. SK Innovation, for example, has a Georgian plant with a 9.8 GWh capacity that will be operational by 2022. In response to increasing demand, the company revealed in 2019 that it would build a second plant of 10GWh.

Europe has a small share of the global battery production capacity. This means that it has great potential for growth. Global manufacturers are now investing in Europe to set up plants there, which is being boosted by the growing demand from the EV industry. Webasto, for example, began producing batteries for electric vehicles in Germany at the Schierling plant near Regensburg in October 2019. The company made an investment of EUR11 millions and plans to start production of standard batteries for commercial vehicles.

Many Asian manufacturers are also investing in Europe to establish plants. Ningde and Inzi Controls, Samsung SDI, LG Chem, SK Innovation, and Inzi Controls have plans to expand their operations in Europe over the forecast period. Svolt Energy Technology plans to establish a European base with a 24 GWh annual production capability by 2025.

Market Share Insights & Key Companies

Due to the presence of large manufacturers, the market for battery metals remains competitive. Manufacturers are pursuing various strategies to increase company market share. These include capacity expansion, mergers and acquisitions. This will help in expanding their target footprints. Investment companies are being drawn to the market by the growth of the battery market. They want to acquire shares in companies that are part the value chain.

Pala Investments Limited purchased 100.0% in October 2019 of Cobalt 27 Capital Corp. Pala Investments Limited is an investor in all raw materials and associated businesses that have significance in the development of sustainable value chains. This includes logistics, extraction, processing, recycling, and technology. Cobalt 27 Corp is a major raw material supplier for the EV and storage market. It owns over 2,160 tons of cobalt and has 6 cobalt royalty payments. The following are some of the most prominent players in the market for battery metals:

• Albemarle

• China Molybdenum Co., Ltd.

• Ganfeng Lithium Company. Ltd.

• Glencore

• Sumitomo Metal Mining

• Umicore

• Vale

Up Market Research published a new report titled “Battery Metals Market research report which is segmented by Application (Electronic Devices, Stationary Battery Energy Storage, EVs, SLI), by Product (Cobalt, Nickel, Lithium), By Players/Companies Albemarle, Ganfeng Lithium Co Ltd, Glencore, Vale, Sumitomo Metal Mining, China Molybdenum Co Ltd, Umicore”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Battery Metals Market Report Segments:

The market is segmented by Application (Electronic Devices, Stationary Battery Energy Storage, EVs, SLI), by Product (Cobalt, Nickel, Lithium).

Battery Metals Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Battery Metals Market

Overview of the regional outlook of the Battery Metals Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Battery Metals Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Battery Metals Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Electronic Devices

                2. Stationary Battery Energy Storage

                3. EVs

                4. SLI

                1. Cobalt

                2. Nickel

                3. Lithium

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Battery Metals Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Battery Metals Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.