Lithium-Ion Battery Materials Market Valued at USD 42.67 Billion in 2024, Anticipated at USD 235.24 Billion by 2032 Amid EV Expansion and Domestic Recycling Efforts | Report by SNS Insider

Austin, May 14, 2025 (GLOBE NEWSWIRE) -- The Lithium-ion Battery Materials Market Size was valued at USD 42.67 billion in 2024 and is expected to reach USD 235.24 billion by 2032, growing at a CAGR of 23.79% over the forecast period of 2025-2032.  

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Rising EV Adoption and Policy Support Accelerate U.S. Battery Material Advancements

The lithium-ion battery materials market is witnessing rapid growth, driven by growing electric vehicle (EV) penetration, ongoing breakthroughs in battery technology, and favorable policy support for clean power. Closer to home in the U.S., the Inflation Reduction Act of 2022 has prompted an explosion in domestic battery manufacturing, with significant related investments extended down the value chain. The ramp in the market has led companies such as Novonix to expand the production of graphite used to make anode materials. In addition, General Motors’ $650 million bet on the Thacker Pass lithium mine demonstrates the significance of accessing domestic lithium resources to enhance national energy autonomy. Collectively, these efforts are hardening the U.S. position in global battery materials and building a strong, built-to-last supply chain for the ever-evolving EV market.

The US Lithium-ion Battery Materials Market Size was valued at USD 5.03 billion in 2023, projected to reach USD 30.25 billion by 2032, growing at a CAGR of 25.14% over the forecast period of 2024-2032.

The US market for lithium-ion battery materials is growing at an accelerated rate due to widespread use of electric vehicles and large investments in the US for battery production. The Inflation Reduction Act is already influencing the future of the battery manufacturing industry, where actors like Novonix are scaling up to meet growing demand for battery-grade materials. GM’s investment in the Thacker Pass lithium mine is yet another indication of the emphasis being placed on local lithium resources. These efforts could establish the U.S. as a major player in the world market for battery materials.

Key Players:

• Umicore
• BASF SE
• Sumitomo Metal Mining Co., Ltd.
• POSCO Future M
• BTR New Material Group Co., Ltd.
• L&F Co., Ltd.
• Ecopro BM Co., Ltd.
• Shanshan Technology
• Ganfeng Lithium Co., Ltd.
• TODA KOGYO CORP

Lithium-ion Battery Materials Market Report Scope:

Environmental Concerns Shaping the Future of Lithium-ion Battery Materials

• The mining of lithium and cobalt causes habitat destruction and deep groundwater depletion problems.
• Poor disposal results in leaching of heavy metals into local environments.
• Material production and refining lead to high amounts of carbon dioxide emissions along the supply chain.
• Lithium extraction from brine depletes the local water supply and disrupts ecosystems.
• The low rates of global recycling drive landfill buildup and raw material needs.

By Type, Cathode Materials Dominated the Lithium-ion Battery Materials Market in 2023 with a 43.7% Market Share

This dominance is due to cathodes making a large contribution to battery performance, energy density, and life. Materials such as lithium nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) are most often used on account of their stability and good performance characteristics. Increased production of EVs, in particular, has led to increased demand for high-performance cathodes, and manufacturers are making huge investments in their R&D for developing the capabilities of the cathode.

By Battery Type, Lithium Nickel Manganese Cobalt (NMC) Batteries Dominated the Lithium-ion Battery Materials Market in 2023 with a 38.2% Market Share

The popularity of such a system is based upon an optimal combination of energy density, safety, and cost. NMC batteries are commonly found in electric vehicles, power tools, and energy storage. The NMC batteries have also gained strong backing from the automobile sector as it shifts its focus from internal combustion engines to electric vehicles (EVs), while manufacturers have been forced to increase NMC production and technologies to achieve performance and environmental levels.

By Application, Electric Vehicles (EVs) Dominated the Lithium-ion Battery Materials Market in 2023 with a 49.8% Market Share

Global promotion of sustainable transportation, government subsidies, and development of battery technology have also driven the growth in EVs. This has led to the demand for high-quality battery materials while assuring vehicle performance, safety, and lifespan. Furthermore, businesses are pouring money into innovating and creating products that promote battery efficiency and shorten the charging routine even more, adding to the market’s momentum.

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Asia Pacific dominated the Lithium-ion Battery Materials Market in 2023, Holding a 51% Market Share

The region has a strong manufacturing base, large-scale capital investment in battery technology, and high-volume demand for electric vehicles. Early adopters include China, Japan, and South Korea, with China alone representing a large slice of the global EV battery market. Government push, South Korea plan South Korea is planning to invest $29 billion to grow its battery industry, while government incentives support Asia's position at the crest of the wave.

North America Emerged as the Fastest Growing Region in the Lithium-ion Battery Materials Market with a Significant Growth Rate in The Forecast Period

This expansion is driven by rising EV adoption, heavy investments in battery production, and government supportive measures. The US government’s focus on electrifying transportation and decarbonizing the economy is driving explosive growth for battery-manufacturing factories and supply-chain upgrades. Partnerships between car manufacturers and battery manufacturers have been driving the rapid growth of the market in the region.

Recent Developments

• November 2024: Epsilon Advanced Materials collaborated with Daejoo to create high-capacity silicon-graphite anode materials, which extend battery discharge capacity and life.
• January 2024: MIT scientists produce cobalt-free material for batteries; may lead to more sustainable electric vehicles

Table of Contents – Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

6. Competitive Landscape

7. Lithium-ion Battery Materials Market Segmentation, By Material

8. Lithium-ion Battery Materials Market Segmentation, By Battery Type

9. Lithium-ion Battery Materials Market Segmentation By Application

10. Regional Analysis

11. Company Profiles

12. Use Cases and Best Practice

13. Conclusion

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