Global Lithium-Ion Battery Anode Market, By Materials (Active Anode Materials, Anode Binders), By Battery Products (Cell, Battery Pack), By End-Use (Automotive, Non-Automotive), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA) Trend Analysis, Competitive Market Share & Forecast, 2017-2027
- Published Date: September 2021
- Report ID: BWC2196
- Available Format: PDF
- Page: 191
Report OverviewGlobal lithium-ion battery anode market is growing at a high CAGR because of the increasing usage of lithium-ion batteries in the renewable energy sector. Additionally, the market is being driven by the growing need for battery-operated material-handling equipment in the industrial sector.
Global Lithium-Ion Battery Anode Market- Industry Trends & Forecast Report 2027
Global lithium-ion battery anode market was worth USD 7.1 billion in 2020 and is further projected to reach USD 24.8 billion by the year 2027, growing at a CAGR of 19.6% in the forecast period. The growing demand for lithium-ion batteries in electric vehicles and other industrial applications is significantly propelling the demand for lithium-ion battery anode. Also, the establishment of new plants by battery vendors will contribute to the growth of the lithium-ion battery anode market during the forecast period.
Source: BlueWeave Consulting
Global Lithium-Ion Battery Anode Market- Overview
Lithium-ion batteries, often known as Li-ion batteries, are rechargeable batteries.These batteries are composed ofan anode, cathode, separator, electrolyte, and two current collectors. Each component of a lithium-ion battery plays an essential role in its operation.The anode and cathode store the lithium. The anode part (or negative electrode) of the lithium batteries is made up of graphite, coated on copper foil. Lithium is generally used as anode material as itisan excellent reducing agent and highly electropositive, which means the higher voltage is obtained depending upon the cathode used.
Global Lithium-Ion Battery Anode Market Forecast and Trends
Increasing Electric Vehicle Production and Penetration
Electric vehicles use lithium-ion batteries as a source of power. The growing production of electric vehicles to meet the increasing demand in various parts of the worldsignificantly propels the demand for lithium-ion battery anode. Across the United States alone, electric cars have increased from one million in 2018 to 18 million by 2025.Lithium-ion batteries are prominently used in electric vehicles because of their high power-to-weight ratio, high energy efficiency, and goodhigh-temperature performance. As a result of the rising use of lithium-ion batteries in electric vehicles, the demand for anodes is expected to rise. It is one of the essential components of the lithium-ion battery.
Advancements in Lithium-Ion Battery Anode
Lithium-ion battery manufacturers are investing heavily in research and development activities to improve the energy capacity and density of the lithium-ion battery anode. For instance, the shift from natural or synthetic graphite to silicon for manufacturing lithium-ion anodes is opening new growth prospects for the market. The latest research conducted by the Okinawa Institute of Science and Technology Graduate University (OIST) has identified a specific component, silicon, that strengthens the anode in lithium-ion batteries. Such advancements are expected to boost the market in the forecast period.
Slower Demand for Lithium-Ion Batteries
The demand for lithium-ion batteries is witnessing slower demand in the market due to the disadvantages associated with them. Lithium-ion batteries are designed to last only two to three years from the manufacturer, increasing the cost of frequent replacements. This type of battery is also susceptible to high temperatures as lithium is a highly unstable chemical. Aviation and safety experts have also expressed concern over the increasing number of fire incidents caused by malfunctioning Li-ion batteries in devices carried by passengers on airlines. Although lithium-ion batteries are rechargeable, they cannot be charged again once they have been depleted. Such limitations of lithium-ion batteries also restrict the global lithium-ion battery anode market.
Impact of COVID-19 on Global Lithium-Ion Battery Anode Market
The unprecedented outbreak of the COVID-19-induced pandemic significantly affected the global lithium-ion battery anode market. The manufacturing and production operation of batteries were temporarily halted due to the nationwide lockdowns imposed by several countries to check the spread of the deadly coronavirus. This resulted in severe losses to the lithium-ion battery anode manufacturers. The prevalent shortage of chips in the post-COVID-19 period is also obstructing the production of consumer electronics which is hampering the market growth. Because of this setback, the market is expected to take some time to recover and reach its pre-COVID levels.
Global Lithium-Ion Battery Anode Market - By Materials
Based on materials, the global lithium-ion battery anode market is segmented into active anode materials and anode binders. The active anode materials segment accounts for the largest market share. This segment is further divided into natural graphite, synthetic graphite, silicon, li-compounds & li-metal. Graphite is commonly used as the active material in negative electrodes mainly because it can reversibly place lithium-ion between its many layers. However, silicon material is emerging as an effective alternative to graphite anodes because of its high theoretical capacity and low discharge.
Global Lithium-Ion Battery Anode Market - By Battery Products
Based on battery products, the global lithium-ion battery anode market is segmented into cell and battery packs. The cells segmentholds the largest market share because of the availability of a wide range of lithium-ion cells of different shapes and sizes. Li-ion cells, as opposed to entire batteries, are available in four shapes: small cylindrical (especially in older laptop batteries), large cylindrical (durable body with large threaded terminals), rigid plastic case with large threaded terminals (example, EV traction packs), and flat or pouch (found in smartphones/new laptops).
Global Lithium-Ion Battery Anode Market - Regional Insights
Geographically, the global lithium-ion battery anode market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. The Asia-Pacific region accounts for the largest market share because of the flourishing consumer electronic manufacturing industry which fuels the demand for lithium-ion battery anode. Emerging economies like China, India, Japan, Australia, etc., hold great growth potential in the production of lithium-ion battery anodes because of rapid industrialization. However, North America and Europe also cover substantial shares in the market.
The leading players in the global lithium-ion battery anode market are Panasonic Corporation, XALT Energy, Tesla, Amperex Technology Limited, Samsung SDI Co., Ltd., A123 Systems LLC, LG Chem., Shenzhen BAK Technology Co., Saft Groupe S.A., TotalEnergies, CALB USA Inc., Lithium Energy Japan, Tianjin Lishen Battery Co., Ltd, Shenzhen A&S Power Technology Co., Ltd., LITHIUMWERKS, GlobTek, Inc., BYD Company Ltd., VARTA AG., Toshiba Corporation, and other prominent players.
The market is highly fragmented with the presence of several industry participants and yet consolidated with the penetration of global giants such as Panasonic, Tesla, Toshiba, etc. The manufacturers are significantly investing in R&D activities to improve their products and expand their production capacities to meet the market’s growing demand. Furthermore, the adoption of competitive strategies like mergers, acquisitions, partnerships, collaborations, etc., is also very prominent in this market.
- In September 2021, Sila, Inc., a US-based materials company, announced to have developed silicon-based particles that can replace the graphite in anodes and hold more of the lithium-ions that carry the current in the battery.
- In September 2021, Redwood Materials, a company started by former Tesla co-founder JB Straubel, announced its plan ofinvesting USD 1 billion towards expanding its business in producing critical battery materials such as cathode and anode foils.
Scope of the Report
Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Revenue in USD Billion
U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia
By Materials, By Battery Products, By End-Use, By Region
Panasonic Corporation, XALT Energy, Tesla, Amperex Technology Limited, Samsung SDI Co., Ltd., A123 Systems LLC, LG Chem., Shenzhen BAK Technology Co., Saft Groupe S.A., TotalEnergies, CALB USA Inc., Lithium Energy Japan, Tianjin Lishen Battery Co., Ltd, Shenzhen A&S Power Technology Co., Ltd., LITHIUM WERKS, GlobTek, Inc., BYD Company Ltd., VARTA AG., Toshiba Corporation, and other prominent players.
- Active Anode Materials
Li-Compounds & Li-Metal
- Anode Binders
By Battery Products
- Battery Pack
- North America
- Latin America
- Middle East & Africa
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