The automotive end-use industry is expected to be one of the major segments for lithium-ion battery anode market
The market size of lithium-Ion battery anode is estimated at USD 8.4 billion in 2021 and is projected to reach USD 21.0 billion by 2026, growing at a CAGR of 19.9 per cent. A report by Markets and Markets notes that the growing demand for electric vehicles along with high demand for lithium-ion batteries for industrial applications is driving the market growth.
“Moreover, strategies such as agreements and plant expansions undertaken by several prominent players in the lithium-ion battery anode industry are further fueling the lithium-ion battery anode industry growth across the globe,” read the report.
Synthetic graphite of lithium-ion battery anode market
Synthetic graphite is produced from pitch and coke. It is of a higher purity than natural graphite but is not as crystalline. It is used in specialty applications because of its superior uniformity and purity (>99 per cent). Graphite end users, therefore, prefer synthetic graphite even though its price is three to four times than natural graphite, as synthetics graphite offers higher reliability and performance.
Synthetic graphite provides smooth migration of lithium-ions and facilitates fast charge as compared to natural graphite. Therefore, It sees high demand for the lithium-ion battery for anode market during the forecast period.
Automotive end-use segment is projected to lead
The automotive end-use industry is expected to be one of the major segments for lithium-ion battery anode market. Battery-driven vehicles such as electric vehicles, e-bikes, and automated guided vehicles, are major consumers of lithium-ion batteries.
There is increasing competition between battery models installed in EVs owing to the need for operational excellence. Increasing adoption and awareness of EVs supports the growth of the lithium-ion battery market which in turn enhances the demand for lithium-ion battery anode.
Europe is the second-largest consumer of lithium-ion battery anode and accounted for a share of 6.1 per cent of the global market, in terms of value, in 2020. The region is home to some of the largest battery manufacturers, such as Saft (France) and FIAMM (Italy).
Batteries have major applications as clean, sustainable, and compact sources of power in automotive. The region is witnessing significant growth in the demand for EVs which is largely dependent on government incentives and funds. Growth in demand for electric vehicle has increased the demand for lithium-ion battery anode which in return has fueled the demand for lithium-ion battery anode in the region.
