North America Silicon Anode Market Size, Share & COVID-19 Impact Analysis, By Capacity (<=3000 mAh/g, >3000 mAh/g), End-Use Industry (Automotive, Consumer Electronics, Energy & Power, Industrial, and Others), and Country Forecast, 2023-2030

North America silicon anode market size was valued at USD 55.9 million in 2022 and is projected to grow from USD 88.1 million in 2023 to USD 965 million by 2030, exhibiting a CAGR of 40.8% during the forecast period.

Silicon anodes are an extension used in lithium-ion silicon batteries. They have a longer battery life and higher energy storage. Silicon is considered a promising anode material for lithium ion batteries as it has a record energy storage capacity (approximately 4000 mAh g−1). This is more than ten times higher than graphite used in commercial batteries. Silicon composite anodes and silicon-based anodes improve the electrochemical performance of a silicon-lithium battery. They have a long service life, high power density, and require less maintenance.

North America Silicon Anode Market Trends

Rising Demand for Sustainable Technologies to Propel Market Progress

The rising interest in sustainable technologies is anticipated to boost the demand for anodes as they have high stability, efficiency, and durability. Silicon anode materials help reduce carbon emissions and promote sustainable technologies by increasing the efficiency of energy storage systems. Apart from using lithium-ion silicon batteries for EVs, the product may be used in other applications, such as electroplating and water treatment systems. These anodes also increase efficiency and offer high stability to these applications.

Moreover, analysis of the latest market trends for the product shows that the augmented focus on promoting sustainable technologies and reducing carbon emissions will drive the demand for clean and renewable energy sources. As a result, the high demand for energy storage solutions is expected to boost the use of anodes in the coming years. Therefore, the rising demand for sustainable technologies is expected to drive North America silicon anode market growth during the forecast period.

COVID-19 IMPACT

Supply Chain Disruptions Due to COVID-19-Induced Lockdown Restrictions Hampered Market Growth

The emergence of the COVID-19 pandemic in 2020 significantly impacted silicon-based anode sales due to declining demand from many end-user industries. The outbreak did not significantly impact the supply of raw materials for making silicon anode, aside from transportation delays due to travel restrictions and minor concerns about driver shortages. Few OEMs in the region continued to obtain supplies from alternative suppliers, which allowed factories to satisfy short-term demand, while others halted operations. The COVID-19-induced demand difficulties affected the battery manufacturing industry in the region, which faced a shortfall in the capability of 25 GWh to 30 GWh in 2020.

DRIVING FACTORS

Increasing Electric Vehicle (EV) Demand to Boost Market Growth

The increased demand for electric vehicles is boosting the market growth. The rising use of safe, long-lasting, and high-performance batteries in several applications, such as grid storage, electric vehicles, and consumer electronics may continue to boost the demand for silicon anodes in North America. Rising sales of electric vehicles is fueling the demand for lithium-ion silicon batteries as they are the most common types of batteries used in these vehicles. Thus, demand for the materials used to manufacture these batteries, such as silicon anodes, is anticipated to increase.

In addition, the rise in the adoption of electric buses for transportation in developed countries, such as the U.S. and Canada is driving the sales of battery materials. The rising population in these countries and a growing economy are boosting the demand for private vehicles and transportation systems, which shall augment the sales of battery materials. Lithium-based batteries are being sold in large quantities, thereby improving their prices and further driving the overall market growth.

Moreover, policies that target banning the future sales of combustion engines in North American countries are positively influencing the sales of electric vehicles. Moreover, technological advancements and growing consumer interest have driven the development of more compact batteries that cover longer distances, while providing extra durability and substantial cost savings. These trends are expected to contribute toward escalating the demand and supply of battery materials in the future.

RESTRAINING FACTORS

Challenges During Lithiation to Restrict Product Adoption

Silicon is abundantly available on the earth and the large-scale production of silicon-based materials has been taking place for years. However, using silicon-based materials as anodes for lithium-ion batteries is quite difficult as it is not a straightforward process. Several challenges must be overcome to use silicon-based materials as anodes for various industrial applications.

The biggest challenge with using silicon as an anode is the large volume expansion of up to 300% during lithiation (discharging). Substantial volume variation of silicon can induce high voltages when lithium is inserted into a silicon-based anode battery.

Such large variations in volume can lead to several consequences, typically including fracture & cracking of the silicon anode, destruction & regeneration of the Solid Electrolyte Interphase (SEI) layer on the fractured surfaces, and deterioration of electric conductivity. These factors and their effect on the electrochemical properties are now commonly referred to as the chemical-mechanical effect, which directly contributes to the battery system's rapid capacity loss.

SEGMENTATION

By Capacity Analysis

>3000 mAh/g Segment to Gain Momentum Due to Growing Demand from End-use Industries

By capacity, the market is segmented into <=3000 mAh/g and >3000 mAh/g.

The >3000 mAh/g segment is expected to capture a dominant silicon anode market share during the forecast period. These anodes have up to 10x greater capacity per gram (mAh/g) and up to 3x higher volumetric capacity (mAh/cc) than graphite anodes. Silicon has emerged as one of the most attractive high-capacity anode materials due to its highest theoretical capacity (4200 mAh/g) as compared to conventional graphite anodes.

However, due to the high specific capacity of silicon, alloying with lithium results in a large volume change (greater than 300%). These extreme volume changes can cause severe electrode cracking and collapse, resulting in a significant loss of capacity.

By End-use Industry Analysis

Automotive Segment Anticipated to Dominate Market Due to Rising Product Demand from EVs

On the basis of end-use industry, the market is divided into automotive, consumer electronics, energy & power, industrial, and others.

The rapidly growing automobile industry is fueling the consumption of silicon anodes drastically. For instance, the post-pandemic period has shown a significant increase in demand for luxury and electric vehicles. Battery manufacturers of electric vehicles are replacing graphite with silicon in the anodes due to the latter’s higher capacity.

The electronics segment accounted for a significant market share and is expected to register a significant CAGR during the forecast period.  The expanding urban population, rising disposable income, a robust supply chain, and growing internet penetration will significantly increase the demand for electronic appliances in the region. Moreover, the large-scale adoption of digitalization caused by the pandemic is anticipated to play a key role in driving the market growth.

Country Insights

The United States silicon anode market accounted for a larger market share in 2022. The automotive sector is anticipated to be a significant driver for the U.S. silicon anode market. Factors, such as higher disposable income and a fully developed automotive industry in the country are effectively fueling the demand for the product.  Furthermore, many companies operating in the country have been undertaking research and development activities to develop high-quality products, which shall boost product demand.

The rising sales of silicon anodes in Canada can be attributed to the increasing product demand from the country’s automotive and electronics industries. Increasing demand for high-quality and long-lasting products is anticipated to drive the market’s growth in the country. Moreover, the growing need for batteries in electric vehicles is expected to drive the nation’s market progress.

KEY INDUSTRY PLAYERS

Key Players are Investing in R&D Activities to Achieve Strong Revenue Growth

This market is consolidated, with a small number of well-established suppliers holding a majority of the market share. The key players operating in the market are Amprius Technologies, Enevate Corporation, Sila Nanotechnologies, Inc., Targray Technology International, and SiFAB/Alkegen. Most companies invest significantly in extensive R&D activities to innovate their products and achieve revenue growth.

Market participants are fiercely competing with international and regional players with extensive distribution networks, regulatory know-how, and suppliers. In addition, many companies are signing contracts for acquisitions and strategic partnerships with other market leaders to expand their existing markets.

LIST OF KEY COMPANIES PROFILED:

• Amprius Technologies (U.S.)


• Enevate Corporation (U.S.)


• Sila Nanotechnologies Inc. (U.S.)


• Targray Technology International (Canada)


• SiFAB / Alkegen (U.S.)


• NanoGraf Corporation (U.S.)


• HPQ Silicon (Canada)


• ADVANO (U.S.)


• APPLIED MINERALS INC. (U.S.)


• California Lithium Battery (U.S.)


• Enovix Corporation (U.S.)


• EoCell, Inc (U.S.)


• Group 14 (U.S.)


• NEO Battery Materials LTD (Canada)


• NEXEON LTD (U.K.)


• OneD Battery Sciences (U.S.)


• Solid Power, Inc (U.S.)


• Ionblox Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023- Enovix Corporation has announced its first high-volume production facility (Fab-2) in Penang, Malaysia. The new manufacturing facility aims to support the growth and mass scale-up of volume, and it is expected to start its production by 2024.


• October 2022- Enevate Corporation and Lightning Motorcycles announced a strategic partnership to strengthen and commercialize lithium-ion battery cells. This partnership aimed to bring innovation by reducing the charging time and improving the existing public charging infrastructure.


• October 2022- Enevate Corporation and  Sealence, a deep-tech start-up and boat propulsion innovator, announced a collaboration on high-performance battery cells for marine applications. The project, named DeepSpeed, is a global patented technology with a high propulsion system that can deliver power between 250 hp and 1,300 hp.


• May 2022- Mercedes Benz announced that it would incorporate Sila Nanotechnologies in building the silicon anode chemistry for Mercedes’ G-class electric vehicles. This incorporation was expected to bring innovation to the automobile giant’s electric car portfolio and new battery technology options to become a leading EV automobile manufacturer.


• September 2021- Alkegen, a subsidiary of Unifrax Holding Co., completed its first phase of a large-scale manufacturing line of silicon fiber anode battery technology at Unifrax’s north central Indiana facility. The new facility was established to help the company in expanding its product portfolio and achieve the aim of transforming the battery industry.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on crucial aspects, such as leading companies, product capacities, and end-use industries. Also, the report offers insights into the latest market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the North America market growth in recent years.

This report includes historical data & forecasts revenue growth at regional and country levels, and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation