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Global Lithium-ion Battery Market: Overview

  • According to Bloomberg New Energy Finance (BNEF), the price of lithium-ion batteries decreased from US$ 1,000 / kWh in 2010 to US$ 273 / kWh in 2016, a drop of 73.0%. The United States Advanced Battery Consortium has set a target of US$ 250 / kWh for 2020.
  • Prominent lithium-ion batteries used in the automobile sector are lithium-nickel-cobalt-aluminum (NCA), lithium-nickel-manganese-cobalt (NMC), lithium-manganese spinel (LMO), lithium titanate (LTO), lithium-iron phosphate (LFP), etc. Lithium-ion batteries made from LFP technology have higher safety characteristics and higher usable capacities.
  • Across the globe, rise in the sales of electric vehicles (EVs) is driving the demand for lithium-ion batteries. Apart from developed countries, even in developing countries such as China, governments have mandated car makers with capacity of 50,000 units/ year to ensure that EV sales account for at least 8.0% of their sales in 2018.
  • A lithium-ion battery consists of a cathode, anode, separator, and electrolyte. In the value chain analysis of the global lithium-ion battery market, the main players are raw material suppliers, separator suppliers, anode suppliers, cathode suppliers, electrolyte suppliers, lithium-ion battery manufacturers, and end users.
  • The main raw material for the manufacture of lithium-ion batteries is lithium. Lithium is extracted from lithium ore, and is marketed in the form of lithium carbonate, lithium hydroxide, or lithium chloride. China dominates the lithium processing industry, accounting for ~ 90% of the world`s lithium hydroxide supply. Lithium carbonate, lithium hydroxide, or lithium chloride are used in the manufacturing of cathode for lithium-ion batteries.
  • Lithium-ion battery manufacturers such as LG Chem, Panasonic Corporation, and BYD Co Ltd have undertaken backward integration, and are manufacturing the cathodes of their lithium-ion batteries.
  • Japanese and South Korean companies are some of the prominent market players in the global lithium-ion battery market. In recent years, China has moved up the value chain and has developed its own in-house lithium-ion battery manufacturing capacity.
Potto Yao

Mr. Potto Yao

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