Lithium-Ion Battery Electrolyte Market Size, Share, Growth and Industry Analysis by Type (LiPF6, LiClO4, LiBF4, LiAsF6, and, Others), By Application (Consumer electronics, electric vehicle, and, industrial energy-storage) Regional Forecast By 2031

Updated On: 08 April 2024

Lithium-Ion Battery Electrolyte Market Report Overview

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The global lithium-ion battery electrolyte market size was USD 1578.73 million in 2021. As per our research the market is expected to generate USD 2780.13 million by 2031, exhibiting a high CAGR 5.82% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over

A lithium-ion battery electrolyte is a very crucial component in the lithium-ion batteries. It helps the batteries to function properly. Battery electrolyte is mainly a chemical which helps in the movement of ions between the two electrodes of a particular battery. The electrolyte is mainly composed of lithium salts which are dissolved in other organic salts.

A lot of measures are being taken up to introduce battery electrolytes are exhibit high performance and better safety. Solid electrolytes are newly being introduced into the market. They have several advantages over liquid electrolytes. This is considered as the latest trend in the market.

There has been a growing demand for high energy density batteries. Also, these battery electrolytes are considered to be the ideal solution for storage of renewable sources of energy. All of these factors have tremendously helped in the growth and development of lithium-ion battery electrolyte market share.

COVID-19 Impact: Reduction in Demand for Electric Vehicles During Pandemic Decreased Market Share

The pandemic of COVID-19 had a negative impact on the growth and development of many industries. Not only did many people lose their jobs, all the industries faced a very huge financial crisis. Other factors such as lockdowns, social distancing norms, and travel bans further obliterated the conditions of the market.

The outbreak of infectious coronavirus had a significant effect even on the lithium-ion electrolyte battery market. There was a significant reduction in the manufacturing and supply of electrolytes. Another important factor that hindered the growth of market included a sharp decline in the demand for electric vehicles. All of these factors reduced the market share during the pandemic.

LATEST TRENDS

"Increasing Safety and Performance of Batteries to Increase Market Growth"

Key industry players always try to come up with innovative technologies that can help in improving the effectiveness of a particular product. Many top companies are focusing their strategies on increasing the safety as well as the performance of lithium-ion battery electrolytes.

Solid-state electrolytes are being introduced in the market as they have many better features such as faster charging capacity, higher energy density, and mainly higher safety compared to liquid electrolytes. Similarly, another trend in the market is use of additives to be added into the electrolytes to increase the ion conductivity, cycling performance, and the stability of the batteries. All of these are considered as the latest trend in the market.

Lithium-Ion Battery Electrolyte Market SEGMENTATION

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• By Types:

The market can be divided on the basis of type into the following segments:

LiPF6, LiClO4, LiBF4, LiAsF6, and, Others. The LiPF6 is anticipated to dominate the market during the forecast period.

• By Application:

Based on application, the market share is bifurcated into the following segments:

Consumer electronics, electric vehicle, and, industrial energy-storage. The consumer electronics segment is expected to dominate the market during the forecast period.

DRIVING FACTORS

"Growing Demand for High Energy Density Batteries in Market to Amplify Market Growth"

Recently there has been an increase in the demand for high energy density batteries because of the superior features they possess. These batteries not only exhibit a very fast charging rate, but they also have a longer life cycle which makes them sustainable for a long period of time. Batteries with greater stability and improved ion conductivity are also being developed.

Such batteries will not only increase the safety of the users but they will enhance the performance of the batteries as well. Recyclable electrolytes are also being developed as many producers are trying to produce batteries that are eco-friendly and less harmful to the environment. All of the above-mentioned factors will help the market undergo a significant growth and development.

"Increasing Demand for Energy Storage Solutions in Renewable Energy Sector to Impede Market Growth"

Finding an energy storage solution is a very challenging task in the renewable energy sector. Lithium-ion batteries are very helpful in this case as they are used in for grid-scale energy storage requirements and applications. By using these batteries, it will be possible to bring a balance in the intermittent output of numerous renewable sources of energy.

Large scale manufacturers who use these batteries search for such lithium-ion battery electrolytes that are low in cost and also require less maintenance. Long life cycle, and fast charging features are highly important to improve the cost effectiveness of the batteries. The demand for renewable sources of energy such as wind energy and solar energy is increasing because fossil fuels are at the risk of getting depleted. They also leave a carbon foot print which can be highly dangerous for the nature. As lithium-ion battery electrolytes serve as good solution for energy storage problems, the market is witnessing a considerable growth.

RESTRAINING FACTOR

"Harmful Effect on Environment During Disposal of Lithium Batteries to Bring Down Market Share"

There are a few disadvantages that are associated with the usage of lithium-ion electrolyte batters. One of the major factors involves the negative effect that disposal of lithium batteries can have on the nature. Electrolytes contain toxic materials that may prove to be harmful to other living beings when disposed without any care.

It is also highly difficult to find the required raw materials for the production of these battery electrolytes. Certain rare and exotic materials are required for the preparation of certain electrolytes. Such materials are very expensive and not affordable by many manufacturers. All of these factors can hamper the lithium-ion battery electrolyte market growth.

Lithium-Ion Battery Electrolyte Market Regional Insights

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"Asia Pacific to Dominate Market During Forecast Period"

The region that has taken up majority of the market share is Asia Pacific. It nearly occupies one-fourth of the market in terms of sales and revenue. Several factors have helped in the growth of the market in this region. The most important factor includes the growing demand for electric vehicles in this region.

Lithium-ion electrolyte batteries form a very important component of electric vehicles. Many countries in Asia Pacific have a well-established infrastructure in automobiles. This will further fuel the demand for these battery electrolytes. Several government policies have also been introduced which are supporting the usage of electric vehicles. This will help in development of the market in Asia Pacific.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profiled

• Guangzhou Tinci Materials (China)
• Zhuhai Smoothway Electronic Materials (China)
• Panax-Etec (South Korea)
• Mitsubishi Chemical (Japan)
• UBE Industries (Japan)
• Shenzhen Capchem (China)
• Tianjin Jinniu Power Sources Material (China)
• Beijing Institute of Chemical Reagents (China)
• LG Chem (South Korea)
• Xianghe Kunlun Chemical (China)
• Mitsui Chemicals (Japan)
• Shantou Jinguang High-Tech (China)
• Huzhou Chuangya Power Battery Materials (China)
• Dongguan Shanshan Battery Materials (China)
• Zhangjiagang Guotai Huarong Chemical New Material (China)

Report Coverage

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations.