Battery Electrolyte Market Size, Share and Global Trend By Electrolyte Type (Liquid,Solid, Gel), By Battery Type (Lithium-ion, Lead Acid) and Regional Forecast, 2024-2032

Battery electrolyte is the liquid substance found in most automobile batteries. Sometimes it is called battery acid because it is extremely acidic. In fact, a mixture of water and sulfuric acid actually consists of battery electrolyte. Battery involves three major components that are an anode, cathode, and electrolyte. The electrolyte of a battery consists of soluble salts, acids or other bases in liquid, gelled or dry formats that contribute to better battery performance by transporting the electrical charge between the anode and the cathode.

Market growth is driven by increased acceptance of smart devices and other consumer electronics, increased demand for electric vehicle batteries (EVs), and increased awareness of renewable energy storage. Whereas, the lack of efficient recycling techniques for battery products and the inadequate charging infrastructure hinder the development of the industry. The growing study activities aimed at developing new electrolytes and the increase of local electrolyte producers in emerging nations offer market possibilities.

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The battery electrolyte market is categorized by its electrolyte and battery type. Based on battery type, the lithium-ion battery segment is expected to grow due to increased production of lithium-ion battery for EVs. The Electric Vehicles Initiative (EVI) is a multi-government policy to accelerate the adoption of electric vehicles worldwide. Lithium-ion battery with liquid electrolyte is a solution of lithium salts with organic solvents added to it.

One of the widely used liquid electrolytes is sulfuric acid and sodium hydroxide. Batteries of lead-acid, nickel-cadmium and nickel-metal-hydride use liquid electrolytes like sulfuric acid and potassium hydroxide, and thus the electrolyte market is dominated by the liquid electrolyte segment.

An increase in demand for electric vehicles to decrease carbon footprint, the fast rise in automotive revenues, elevated demand from the battery replacement market and increased share of alternative energy sources in the energy mix are the main drivers of the development of the battery electrolyte market. Additionally, increasing the adoption of consumer electronics is also expected to uplift the market.

However, when compared with conventional fuel vehicles, the high capital cost of EVs restricts the growth of the market for lithium-ion battery electrolytes. Additionally, lithium-ion batteries lack recycling technology. The present techniques are not profitable and require subsidies to make them commercially viable.

Key Players Covered

Some of the major companies that are present in battery electrolyte market are Advanced Electrolyte Technologies, LLC, 3M, Umicore, Toray Industries Inc., POSCO, Mitsubishi Chemical Holdings, Hitachi Chemical, American Elements, Gelest, Inc, Daikin America Inc., Ceramtec, BASF SE, Shenzhen Capchem Technology Co., Ltd, Ube Industries, Ohara Corporation and Nohms Technologies Inc.

SEGMENTATION 

Regional Analysis

The global battery electrolyte market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In North America, the Electric Vehicles Initiative (EVI) is a multi-government strategy to speed up electric vehicle adoption. In Europe, governments have started offering subsidies related to electric vehicle manufacturing, which is expected to increase the demand for battery electrolyte in EV batteries. Asia-Pacific is expected to the dominant player as the market for electrolyte is boosting due to the rising demand from various end-use industries, such as electric vehicles, energy storage, and portable consumer electronics. The demand is also triggered by the increasing number of telecom towers, raising awareness on clean energy generation, rising command for industrial storage, rising electrification drive in developing countries, increasing automobiles sales, falling solar energy costs, etc. The Latin American Battery Electrolyte market is expected to grow due to the expanding the automotive industry, in Brazil and Mexico due to NAFTA between the US- Mexico, which is expected to project electric vehicle sales. The market in the Middle East & Africa is expected to experience considerable growth in the coming years with increasing investments on smart, clean, and sustainable development projects.

Key Industry Developments

• In Aug 2018, Mitsubishi Chemical Corporation announced that it has reached an agreement with Deutsche Beteiligungs AG to acquire shares of Cleanpart Group GmbH, which has developed semiconductor-related services in Europe and the U.S. All the shares were turned over in October of this year.
• In May 2019, Umicore announced that it has reached an agreement to acquire the cobalt refining and cathode precursor activities of Freeport Cobalt in Kokkola, Finland, for a total debt and cash-free consideration of $150 million, plus the working capital to be acquired at the end of March, which amounted to approximately $40 million. Through this acquisition, Umicore is aimimg to expand its integrated battery materials footprint.
• In Feb 2018, Mahindra and LG Chem formed a partnership to jointly create a new and advanced Li-ion battery technology for use in the electric vehicle spectrum of Mahindra