Page 174 - CW E-Magazine (4-2-2025)

Special Report

Lithium-ion batteries: The future of mobility & energy

storage

INTRODUCTION With governments pushing for EV POOJA GAWAI
ithium-ion (Li-ion) batteries adoption through subsidies and emission Marketing Executive, Persistence
(LIBs) have revolutionized regulations, the market is expected to Market Research Pvt. Ltd.
Lenergy storage across various continue its rapid expansion, parti- Email: pooja@persistencemarket
industries, making them one of the most cularly in sectors like EVs, consumer elec- research.com
widely used technologies in the world tronics, and renewable energy storage.
today. From electric vehicles (EVs) to promise to deliver higher energy densi-
smartphones, renewable energy stor- Key drivers ties and improved safety, are expected
age, and grid applications, LIBs have Several factors are contributing to to further accelerate the adoption of
become the backbone of modern the rapid growth of the LIB market, posi- LIBs in various applications.
energy solutions. As the demand for tioning it for a prosperous future:
sustainable energy solutions continues Declining battery costs
to rise, the LIB market is witnessing Rise in EV demand The cost of LIBs havesignifi cantly
an unprecedented growth trajectory. The global shift toward electric reduced over the past decade, making
In this article, we will explore the key mobility is one of the primary drivers of them more accessible for a broader
trends, opportunities, and insights driv- the LIB market. With countries world- range of applications. With further
ing the market forward. wide implementing stricter emission advancements in manufacturing pro-
regulations and offering incentives for cesses and economies of scale, LIBs
The global market for LIBsis pro- EV adoption, the demand for high- are becoming increasingly affordable,
jected to grow from US$55.4-bn in performance, long-lasting batteries is particularly for mass-market EVs and
2024 to US$178.6-bn by 2031, achiev- accelerating. According to reports, the energy storage systems.
ing acompound annual growth rate global EV market is expected to grow
(CAGR) of 18.2% from 2024 to 2031 at a CAGR of over 22% in the next Regional analysis
according Persistence Market Re- decade, directly boosting the demand The LIB market is expanding across
search. This growth is primarily driven for LIBs. all regions, with some seeing more rapid
by the surging demand for EVs, the growth due to specifi c economic and
growing adoption of hybrid electric Increasing focus on renewable industrial trends.
vehicles (HEVs), and the increasing energy storage
need for energy storage systems across Another signifi cant driver is the Asia-Pacifi c: thedominant market
various industries. growing emphasis on renewable energy leader
sources such as solar and wind. As these Asia-Pacifi c is the largest market
Asia-Pacific leads the market intermittent power sources require effi - for LIBs, driven by the rapid adoption
with 45% of market sharein 2023, cient energy storage solutions, LIBs are of EVs and renewable energy solutions.
driven by the robust consumer elec- emerging as a popular choice for grid- China, in particular, holds a signifi cant
tronics sector, as well as advancements scale energy storage and backup power market share, both as a major producer
in wearable devices and increasing EV solutions. Their effi ciency, long life, of LIBs and as the world’s largest con-
adoption in countries like China, Japan, and high energy density make them sumer of EVs. Additionally, Japan and
and India. ideal for supporting the integration of South Korea are home to some of the
renewable energy into power grids. world’s leading battery manufacturers,
The lithium nickel manganese including companies like Panasonic,
cobalt oxide (NMC) chemistry dominates Technological advancements in LG Chem, and Samsung SDI.
the market due to its high specifi c en- battery effi ciency
ergy and versatility for different power Constant advancements in LIB tech- North America: Booming demand in
capacities. Mean while, lithium iron nology, such as improvements in energy the EV sector
phosphate (LiFePO ) batteries are gain- density, charging speed, and lifecycle, North America is also experienc-
4
ing traction for their safety, long life are also fostering market growth. Inno- ing rapid growth, particularly in the EV
cycle, and high current rating. vations like solid-state batteries, which sector. With major automakers such as

174 Chemical Weekly February 4, 2025

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