The global anode material for automotive lithium-ion (Li-ion) battery market is predicted to generate a revenue of $1,348.6 million by 2030, increasing from $707.2 million in 2019, progressing at a 5.7% CAGR during the forecast period (2020–2030), as per a report by P&S Intelligence. The reducing prices of anode materials and rising sales of electric vehicles are the major driving factors of the market. In terms of type, the market is divided into silicon compound, amorphous carbon, lithium-titanate oxide (LTO), artificial graphite, and natural graphite.
Anode Material for Automotive Li-Ion Battery Market
Out of these, the artificial graphite division held the major share of the anode material for automotive Li-ion battery market in 2019, and is predicted to retain its dominance during the forecast period as well. This material has a number of advantages over other anode materials, including better recycling performance, improved power output and/or energy density, and lower cost. The LTO division is projected to progress at the fastest pace during the forecast period.
Geographically, the Asia-Pacific region accounted for the largest share of the market during the historical period (2014–2019), and it is further projected to dominate the market during the forecast period. The increasing adoption of electric vehicles, owing to the enhanced government, especially in China, is leading to the growth of the regional domain. The demand for anode material in the region is also growing due to the surging environmental concerns and lower total cost of ownership for electric vehicles as compared to conventional vehicles.
The surging sales of electric vehicles is the major driving factor of the anode material for automotive Li-ion battery market. The key reasons for the growing adoption of electric vehicles is the rising government support and surging concerns regarding the environment. Financial incentives, purchase rebates, and tax exemptions are some of the supportive initiatives that are being implemented by governments. This is expected to result in the growing need for anode material for manufacturing Li-ion batteries.