Battery chemicals are the basic raw materials and compounds in the battery supply chain and mainly consist of metals such as Cobalt, Lithium, and Nickel, among others and they are extracted from upstream mining operations that convert seawater brines or mineral ores into processed battery metals. According to BlueQuark Research & Consulting, the global Battery Chemicals market is expected to witness a significant growth rate during the forecasted period. Factors such as increasing EV adoption worldwide, reducing battery prices and growing investment by leading automotive OEMs to steady the battery supply chain for their future electric vehicles. Some of the major factors driving the growth of the battery chemical market in the forecasted period. Further, Battery material consumption in lead-acid batteries is anticipated to continue in the market, mainly attributed to its high consumption in the automotive industry in the forecasted period. Furthermore, the use of consumer electronics will increase, which is expected to drive the battery chemicals market during the forecasted period. However, Environmental concern related to the mining of metals is a significant concern in the battery chemicals, as this could hamper the battery chemicals market in the forecasted period.

The end products are battery chemicals used in various end-use industries such as consumer electronics, automotive, and energy storage devices. The most common battery currently utilized is the lithium ion battery, and it is extracted from brine or mineral ores like spodumene and lepidolite. Aside from lithium battery, these batteries contain cobalt, nickel, and manganese to a certain extent.

The increased need for battery ingredients such as lithium, cobalt, and nickel has resulted in a rise in EV production worldwide. In fact, due to a significant increase in battery production, there may be a shortage of these critical elements in the future. Global electric vehicle sales have been supported by the shift to clean energy and the surge in crude oil costs. EV adoption has been increasing at an unprecedented pace over the past few years, accelerated by environmental concerns, stringent regulations, and government incentives for Electric vehicle purchases. As a result, automakers are ramping up lithium-ion battery production. Growing adoption of electric mobility in proceeding economies, surging investments in developing Li ion battery capacity, and boosting deployment of battery-as-a-service provide significant growth opportunities for market players. Battery chemicals form the basis of almost every industry, from automotive to electronics. Battery capacity varies per application, from the average of 3,000 mAh for powering a smartphone to as high as 100 KWh in EVs. Other than automobiles and consumer electronics, batteries are also utilized to store energy in solar power plants and UPS & inverter systems as a source of backup power. The consumption of Li ion batteries grew at a rapid pace due to a substantial portion of car owners ongoing to migrate to electric vehicles. Due to this, lithium-ion batteries accounted for a significant market share, attributed to their extensive utilization in electric vehicles, specifically EVs, which, in turn, boost battery chemical demand.

Asia-Pacific accounted for a significant share of the market as well as the fastest-growing region, owing to abundant battery metal reserves in China, India, Australia, and other Asia Pacific countries. Out of all the end-use industries, automotive is anticipated to dominate the market until the end of the forecast period as consumers continue shifting to electric vehicles. Lead acid battery chemicals have remained a significant demand generator during the past half-decade, owing to their consumption in traditional vehicles and conventional backup power providers such as invertors. Nickel-cadmium batteries still account for a significant stake in remote controls. The globally developing electric vehicle market, increase in consumer electronics such as laptops and smartphones, and collaborative development between miners and battery producers are some significant drivers currently driving the global battery materials market. The demand for new consumer electronics will grow battery production in the long run. Electronic devices, like smartphones, require more battery capacity to extend their operating life and cater to more advanced functions. The growth of the lithium chemicals industry is also influenced by the growing consumption of lubricants, polymers, and glass & ceramics. The demand for polymers is surging globally due to their use in virtually every end-use vertical. The need for durable, high-performance, and aesthetic glass and ceramic products is increasing, led by the ongoing residential and commercial expansion. The expansion of critical end-use sectors indicates that the consumption of lithium compounds will grow substantially in the forecasted period. Lithium-ion batteries have developed as a viable alternative energy source with zero carbon emissions, as well as being lightweight, space-saving, and having a high-efficiency rate of operation and maintenance, which has prompted a majority of end-users to embrace this technology. Additionally, secondary batteries, primarily used in electric vehicle battery manufacturing, remained the most preferred application of battery chemicals. The medical sector is predicted to hold a fair share of the lithium chemicals market through 2027. Lithium finds extensive use as a mood stabilizer to treat mood disorders. It is obtainable as both regular and slow-release tablets (lithium carbonate) and a swallowable liquid (lithium citrate). Compounds of Li are found to be effective for alleviating mood disorders and against mental conditions such as mania, bipolar disorder, hypomania, depressive episodes, and others. They can also help decrease self-harming or aggressive behavior. The growing burden of mental health problems will undoubtedly boost the consumption of lithium compounds across the medical sector.

The market's key players are Albemarle, China Molybdenum Co. Ltd ., Gan Feng Lithium Co. Ltd ., Glencore PLC, and Livent Corporation.

In August 2020-21, China Molybdenum Company invested US$ 2.5 Bn to boost copper and cobalt manufacture at its Tenke Fungurume mine, which is already one of the largest in DRC.

In September, BASF announced a strategic partnership on battery materials, consisting of CAM and battery reusing, with China-based Contemporary Amperex Technology Co. Limited is building its first European Lithium-ion battery factory in Arnstadt, Germany.

In August, BASF and China-based Shanshan formed a joint venture called BASF Shanshan Battery Materials (BASF 51%, Shanshan 49%) to boost CAM capacity in China to 90,000 tonnes/year by 2022. BASF targets an industry-leading global CAM capacity of 160,000 tonnes/year by 2022.

Global Battery Chemicals Market report provides deep insight into the Industrial market's current and future state across various regions. The study comprehensively analyses the Battery Chemical market by segmenting based on Chemical Type (Cathode Battery Chemicals, Anode Battery Chemicals, Electrolyte Battery Chemicals, Separator), By Battery Type ( Nickel Cadmium, Lead Acid, Lithium-Ion, Zinc Carbon, Alkaline, others), By Applications (Primary (Not Rechargeable) Battery Chemicals, Secondary (Rechargeable) Battery Chemicals), and By End-use Industry ( Automotive, Consumer Electronics, Household Appliances, Security & Monitoring Systems, Utilities & Backup Power, Medical, Others). The report examines the market drivers and restraints and the impact of Covid-19 on the market growth in detail. The study covers and includes emerging market trends, developments, opportunities, and challenges in the industry. This report also covers extensively researched competitive landscape sections with prominent companies and profiles, including their market shares and projects.