A battery is a product which transforms stored chemical energy directly into electrical energy. The main components of battery are anode, cathode, and electrolyte. Batteries use electrolyte as the chemical source for the electricity production. Electrolyte is substance which releases ions when dissolved in solvent or liquid. The battery electrolyte market is progressing at a good rate in the recent years, and anticipated to register a significant growth during the forecast years. The growth is majorly attributed to the increasing adoption of electric vehicles, increase in automobile sales, and increase share of alternative energy sources in the energy mix.
The batteries use different chemical compounds as electrolyte. Some of the commonly used compounds are sodium chloride, sulphuric acid, nitric acid, chloric acid, sodium acetate, and others.
Insight by Battery Type
On the basis of battery type, the battery electrolyte market is classified into lead-acid batteries and lithium-ion batteries. Among these two, lithium-ion batteries category is projected to lead the market, registering the higher CAGR during the forecast period. This can be attributed to the increasing penetration and growing focus of various countries on electric vehicles, as government of various countries are focusing on lowering the carbon dioxide in order to maintain a greener environment. For instance, the Electric Vehicles Initiative (EVI) is a multi-government policy which is designed to accelerate the adoption of electric vehicles across the world.
The battery electrolyte market is further classified on the basis of state of electrolyte; where lead-acid battery is categorized into liquid electrolyte, gel electrolyte. Lithium-ion category is further classified into liquid electrolyte.
The increasing adoption of electric vehicles, increases in automotive sales, increasing demand from replacement market of batteries are among the major factors driving the battery electrolyte market growth. Various countries are the members of EVI, including China, Canada, Finland, Germany, France, India, Mexico, Japan, the Netherlands, Sweden, Norway, the UK, and the US. These countries plans to change their 30% total vehicle fleet to electric vehicles, which are expected to fuel the batteries demand, resulting in the growth of battery electrolyte market in the coming years.
Expensive electric vehicles as compared to conventional crude vehicles and lack of efficient recycling technologies for battery materials are the major challenges that are expected to hinder the battery electrolyte market growth. The electric cars are more expensive than conventional cars, and the cost is mainly comes from battery. Raw materials used in the battery and the expensive processes involved in battery production further add up to the battery cost, hindering the market growth. However, innovative battery materials with a high energy density and improved production processes could possibly be able to cut down the cost in the coming years.
Regulations over carbon emissions, safe disposal, use of lead, and renewable energy usage targets around the world are providing substantial boost towards new product development initiatives in battery electrolyte market.
Asia-Pacific battery electrolyte market is expected to account for the largest share in the market. The major market growth is attributed to the increasing demand from end-user industries which include energy storage, electric vehicles, portable consumer electronics, and others. Along with that, the increasing number of telecom towers and rising electrification in the countries such as India are also driving the market growth in the region.
Key companies are adopting various strategies such as acquisitions, expansions, mergers, research and development, and joint ventures in order to meet the increasing demand for battery electrolyte and also to expand their market presence and footprint. Some of the key players operating in the global battery electrolyte industry are Mitsubishi Chemical Corporation, Shenzhen Capchem Technology Co., Ltd., Ube Industries, Johnson Controls, Guangzhou Tinci Materials Technology Co., Ltd., 3M Company, BASF SE, LG Chem, American Elements, and GS Yuasa Corporation.