Since the past few years, the demand for electric vehicles has increased significantly due to the surging environmental concerns and fluctuating oil prices. In addition to this, several government agencies around the world are also encouraging the consumers to adopt for electric vehicles by providing various incentives. Among all the potential solutions that do not make use of petroleum, battery electric vehicles are one of the most widespread and popular options. As compared to other mature battery technologies, lithium-ion (Li-ion) batteries are now considered the standard for modern battery electric vehicles due to their excellent specific energy and energy density.
Li-ion batteries are rechargeable batteries which have high energy density and are lighter than other rechargeable batteries of similar size. According to a study conducted by P&S Intelligence, the global lithium-ion battery market reached a value of $33,720.8 million in 2018 and is predicted to attain $1,06,493.0 million in 2024, advancing at a 21.8% CAGR during the forecast period (2019–2024). Geographically, the largest demand for Li-ion batteries was created by the Asia-Pacific region during 2014–2018 and the situation is projected to remain the same during the forecast period as well. This is due to the expanding market for electric vehicles, rising demand for these batteries for smart devices, and technological advancements in the region.
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The different types of Li-ion batteries are lithium manganese oxide (LMO), lithium nickel cobalt aluminum oxide (NCA), lithium cobalt oxide (LCO), lithium nickel manganese cobalt (LI-NMC), and lithium iron phosphate (LFP). Out of these, the LFP type was the most in demand during 2014–2018 due to the extensive use of these batteries in China. The fastest growth in demand is expected to be witnessed by the LI-NMC type in the coming years because these batteries have high thermal stability, longevity, and storage range. Furthermore, the manufacturers and researchers are increasingly focusing on NMC cathode in order to reduce the cobalt content, which will make the battery cheaper.
When application is taken into consideration, the lithium-ion battery market is categorized into automotive, medical, industrial, consumer electronics, aerospace & defense, telecom, and others (which include cordless tools, gardening tools, marine equipment & machinery, and security lighting). Among these, the Li-ion batteries were utilized the most for the consumer electronics application during 2014–2018. However, in the coming years, the demand for these batteries is projected to be the highest for the automotive application due to the shift from traditional internal combustion vehicles to electric vehicles in developing countries, which are focusing on reducing the carbon emissions.
Despite the rising usage of Li-ion batteries in the automotive sector, their high adoption in consumer electronics products is a factor resulting in their increasing requirement. The demand for consumer electronic products is growing because of the expanding middle-class, surging inclination toward using smart electronic devices, and changing lifestyle preferences. Moreover, governments around the globe are focusing on digitalization and promoting the usage of different electronic devices among consumers. Li-ion batteries are the dominant battery technology in the consumer electronic products’ market due to their advantageous characteristics, which is driving their demand.