Lithium Polymer Battery Market Size, Share, and Industry Analysis By Type (Lithium Cobalt Oxide Battery, Lithium-Ion Manganese Oxide Battery, Lithium Iron Phosphate Battery, and Lithium Cobalt Oxide Battery), By Application (Automotive, Consumer Electronics, Energy Storage System, and Others), and Regional Forecast till 2032

The global lithium polymer battery market is prospering as it has many advantages over lithium-ion batteries in terms of technological advancements. Lithium polymer (LiPo) batteries are found in portable devices but most often in devices that require a compact battery. For example, smart wearables such as Fitbits or Apple Watches have little space for battery storage but require a long-lasting power source to match the device's 24/7 operations.

• In February 2024, Dutch startup LionVolt, a developer of solid-state 3D lithium polymer batteries,  raised ~USD 15.26 million (EUR 15 million) to scale up the process. Based at TNO's Holst facility in Eindhoven, the Netherlands, LionVolt runs on solid-state batteries that do not contain liquid lithium in standard lithium-ion devices. Instead, batteries are thin films that contain billions of solid pillars that form a 3D patterned architecture with a large surface area on a polymer base.

Lithium Polymer Battery Market Driver

Rising Penetration of EVs across the Globe to Increase the Demand for the LiPo Battery Market

Growing investments and innovation in EV manufacturing technology are leading the demand for lithium polymer batteries in many battery manufacturing countries. In India, Japan, China, and South Korea, the appealing compact size of LiPo batteries is driving the growth of battery industries.

• In July 2024, lithium-ion battery maker and recycling company Lohum announced plans to invest USD 118.6 million over the next three years in the development and production of lithium-magnesium polymer batteries. Research and development grants from the Ministry of Mines support the development of this technology. Lohum plans to launch a capacity of more than 20 GWh by 2027 with an investment of USD 118.6 million, which will also fund technological development. The next generation Lithium Manganese Iron Phosphate will provide greater safety and give electric vehicles a longer range than conventional technologies at a much higher cost.

Lithium Polymer Battery Market Restraint

High Cost of Advanced Technology used in LiPo Batteries May Hamper Market Growth

In response to the emergent market and demand for electric vehicles (EVs), billions of dollars are being invested in the battery industry to increase the number and production volume of battery cell factories around the world. On the other hand, despite the increase in the cost of battery cell raw materials, the total cost of battery cell production must reach a certain value to generate competitive prices with internal combustion vehicles. Furthermore, getting a high-quality battery at the end of the production line involves many complexities. Therefore, rising prices will hinder the growth of the market.

Lithium Polymer Battery Market Opportunity

Rising Implementation of Smart Metering Initiatives to Offer New Growth Opportunities

To cope with the growing population, many countries around the world have implemented smart metering and grid automation initiatives. Smart meters generate petabytes of data on electricity drawn, measured, power factor, damage, theft and other parameters. Smart meters have also been integrated into the ICT architecture to send signals or messages to the grid. Therefore, if the power is out, the meter cannot send messages to the device. Therefore, there is a need to obtain a reserve capacity. Therefore, the growth of smart grids and smart meters will increase the demand for the lithium polymer battery market.

Segmentation

By Type	By Application	By Geography
Lithium Cobalt Oxide Battery Lithium-ion Manganese Oxide Battery Battery Lithium Iron Phosphate Battery  Lithium Cobalt Oxide Battery	Automotive Consumer Electronics Energy Storage System Others	North America (U.S. and Canada) Europe (U.K., Germany, France, Spain, Italy, Russia, and the Rest of Europe) Asia Pacific (Japan, China, India, Australia, Southeast Asia, and the Rest of Asia Pacific) Latin America (Brazil, Mexico, and the Rest of Latin America) Middle East & Africa (South Africa, GCC, and Rest of the Middle East & Africa)

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Countries


• Latest Technological Advancements


• Insight on Regulatory Landscape


• Porters Five Forces Analysis


• Impact of COVID-19 on the market 

Analysis by Type

Based on type, the market is subdivided into lithium cobalt oxide battery, lithium-ion manganese oxide battery, lithium iron phosphate battery, and lithium cobalt oxide battery.

Lithium iron phosphate has good electrical performance and low resistance. This is achieved by nanoscale phosphate cathode material. The main advantages are high current, long life, thermal efficiency, increased safety, and endurance for heavy use. It also has good safety, a long life cycle, abundant raw materials, and low environmental pollution. Lithium phosphate is often used instead of lead-acid starter batteries.

Analysis by Application

Based on application, the market is divided into automotive, consumer electronics, energy storage system, and others.

Automotive applications are leading in the battery industries. With the evolution of EVs, many countries are investing in the battery sector, leading the use of the lithium-polymer battery market. There are many advantages of LiPo batteries in the automotive sector, such as starting lighting ignition, idle stop, and full hybrid and mild hybrid structures, among others. According to the International Energy Agency (IEA), the electric car market is witnessing strong growth in sales, which accounted for around 14 million units in 2023. The share of electric cars in total sales has surged from around 4% in 2020 to 18% in 2023.

• In June 2024, TOPPAN Holdings Inc. and Toyo Seikan Co. Ltd. shared plans to sign a letter of intent (LOI) to form a cooperative venture to manufacture and sell lithium-ion car battery packs in Sweden. The joint venture aims to begin operations in fiscal year 2026 or later.

The electronics sector is also one of the major industries and offers numerous products, such as consumer electronics products, where the lithium polymer battery can be used. The electronics industry is growing considerably. For instance, as per the International Labour Office, in 2023, the electrical and electronics sector upheld its second place in the major ten sectors with around ~USD 183 billion in proclaimed greenfield projects.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America lithium polymer battery market is driven by the rising espousal of hybrid and electric vehicles and increasing demand for energy storage systems. The U.S. is the leading country in the region as the government is heavily investing in the automotive sector, especially in the electric and hybrid vehicle segment.

• In 2022, General Motors and Ford announced their strategy aimed at producing and selling electric vehicles. General Motors announced its goal to produce 30 EV models and launch an electric vehicle (BEV) manufacturing capacity of ~1 million units in North America by 2025, in addition to becoming carbon neutral by the year 2040.

In May 2018, the European Commission approved a Strategic Action Plan for Electronics, which sets out measures to support the creation of a European battery value chain worth up to 250 billion euros by 2025, able to compete with existing infrastructure. The action plan emphasizes the need for a set of rules that will enable the battery industry to compete based on innovative and sustainable products, and this will lead to the growth of the lithium polymer battery market in the region.

In the Asia Pacific, China is the largest manufacturer of lithium polymer batteries, with huge infrastructure availability and growing automotive and industrial markets. China overtook the U.S. as the world leader in electric vehicle production in 2022. China has been the largest consumer of lithium polymer batteries for consigative five years. The country is also the undisputed largest shareholder of battery manufacturing in the world, with the largest battery manufacturer in China, Amperx Contemporary Technology Co. (CATL) alone has about 35% of the global lithium-ion battery market in the first quarter of 2022.

The increasing demand for smartphones and consumer electronics is driving the market growth. Additionally, the rising demand for smart devices and wearables is expected to propel the market growth. Saudi Arabia and Morocco are strategic locations in the supply chain for lithium polymer batteries. Through different policy approaches, using government support, industrial policies, and geopolitical conditions, these countries are attracting investors and using their capital to increase their role in the EV battery supply chain.

In Latin America, Mexico is the leading manufacturer of LiPo batteries due to the presence of the automotive industry in the country. Recently, Tesla announced that its factory in Monterrey, Mexico, has 1.7 million tons of light metal that powers the mining industry in the country.

Key Players Covered

The global lithium polymer battery market is concentrated with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• BYD Company (China)


• LG Chem (South Africa)


• Panasonic Corporation (Japan)


• Samsung SDI (South Korea)


• Contemporary Amperex Technology CATL (China)


• BAK Power (China)


• Hitachi (Japan)


• Toshiba Corporation (Japan)


• Amara Raja Industries (India)


• Exide Industries (India)


• Clarios (Germany)


• A123 System (U.S.)


• Saft Group SA (France)


• Karcus Energy (India)


• Okaya Power Group (India)

Key Industry Developments

• In June 2024, Amara Raja Advanced Cell Technologies Pvt Ltd announced a license agreement with GIB EnergyX Slovakia s.r.o. signed for lithium-ion cell technology. As part of the agreement, GIB EnergyX, a subsidiary of Gotion High-Tech Co Ltd, will license Gotion's "LFP technology" for lithium polymer cells to Amara Raja Advanced Cell Technologies (ARACT), part of Amara Raja group.


• In September 2022, Panasonic Corporation announced plans to set up a manufacturing facility at its Wakayama plant in western Japan to produce new cylindrical lithium-ion batteries 4680 (46 mm in diameter and 80 mm in height) for electric vehicles (EV).