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Global Binders in Battery Market 2021
The global binders in battery market is expected to experience substantial growth, reaching $6,057 million by 2031 from $2,266 million in 2022. This growth is projected to occur at a compound annual growth rate (CAGR) of 11.54% during the forecast period of 2022-2031. The increased sales of electric vehicles and investments in renewable energy installations are the key drivers behind this projected growth. However, the market faces challenges such as the development of binder-free electrode technologies and the pressure to maintain high performance and quality of binders at competitive prices.
Battery binders play a crucial role in holding together the various components of a battery cell, including the electrodes, separator, and electrolyte. Their primary purpose is to provide mechanical support and structural stability to the cell. Typically, binders are polymers that are added to the electrode mixture and coated onto a current collector. They hold the electrode in place and prevent detachment or shifting during operation when the electrode is pressed onto the separator. The growing demand for batteries, particularly in the electric vehicle sector, has increased the need for binder materials. According to the International Energy Agency (IEA), sales of battery-electric vehicles and plug-in hybrid electric vehicles nearly doubled from 2020 to 2021, reaching 6.6 million units. Despite challenges in the global supply chain, the first quarter of 2022 witnessed a record of approximately 2 million units of electric vehicle sales. As batteries play a crucial role in electrifying mobility and balancing power networks, they have become a vital component in the transition to a more sustainable future.
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USD 2.3 billion in 2020
Binder Type, Process, Binder Chemistry, Battery Type, End-Use, Region
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The global binders in battery market is currently in a phase of growth. Emerging trends, such as the focus on developing water-based binders, are expected to create opportunities in the coming years. With a global emphasis on reducing carbon emissions, the adoption of electric vehicles has led to a surge in battery demand and subsequently an increased demand for battery binders. This shift is particularly prominent in regions like North America and Europe.
The demand drivers for the global binders in battery market include the increasing demand for electric vehicles, growing investments and installations in the renewable energy sector, and improved battery performance due to advanced multifunctional binders.
However, the market also faces limitations, including a highly competitive environment that creates constant pressure to maintain high performance and quality of binders at competitive prices. Additionally, the development of binder-free electrode technologies for advanced batteries poses a challenge to the market.
In summary, the binders in battery market is poised for significant growth driven by the rising sales of electric vehicles and investments in renewable energy installations. While challenges exist, such as maintaining quality and developing new technologies, the market presents opportunities for advancements in binder materials, particularly the development of water-based binders, to meet the demands of a carbon-conscious world.
The market is segmented based on various factors, including binder type, process, binder chemistry, battery type, end-use, and region.
Segmentation by End-Use Industry
Automotive and Transportation
Energy and Power
Segmentation by Process
Segmentation by Binder Chemistry
Styrene Butadiene Rubber (SBR)
Polyvinylidene Fluoride (PVDF)
Carboxymethyl Cellulose (CMC)
Segmentation by Battery Type
Nickel Metal Hydride
Segmentation by Region
North America – U.S., Canada, and Mexico
Europe – Germany, France, Italy, Spain and Rest-of-Europe
Asia-Pacific and Japan – Japan, South Korea, India, and Rest-of-Asia-Pacific and Japan
Rest-of-the-World (RoW) – Middle East and Africa and South America
The automotive and transportation segment emerged as the dominant force in the binders in battery market in 2021, based on its end-use industry. This segment claimed the largest share primarily due to the surging sales of electric vehicles worldwide. The growing adoption of automotive lithium-ion batteries has been further propelled by favorable governmental regulations. Governments from multiple nations are actively collaborating with automobile manufacturers to address the pressing issues of ecological sustainability and clean energy balance.
In terms of process, solvent-based binders commanded a majority share in the binders in battery market in 2021. This can be attributed to the widespread use of solvent-based binders such as PVDF and PTFE in batteries, which are widely consumed across the industry.
Polyvinylidene fluoride (PVDF) emerged as the dominant binder chemistry in the binders in battery market in 2021, holding the majority share. This is primarily due to the suitability of PVDF for various types of batteries, owing to its superior properties.
The lithium-ion segment claimed the largest share in the binders in battery market in 2021 based on battery type. Lithium-ion batteries are preferred power sources for low-carbon technologies like electric vehicles. Their ability to store large amounts of energy, sustain charging capabilities, and maintain functionality after numerous charge cycles in a compact form factor makes them vital for the ongoing shift away from carbon dioxide-emitting gas-powered vehicles. Additionally, lithium-ion batteries are well-suited for power storage in the electric grid due to their similar characteristics.
China dominates the binders in battery market, driven by several factors. These include a robust electric vehicle industry, leading players across the supply chain, and a rapidly developing economy. Moreover, China possesses significant reserves of lithium ions, which can be effectively utilized in various industries such as automotive, consumer electronics, and more. The country also boasts substantial production capacity for polyvinylidene fluoride (PVDF) and other chemicals.
The selection of the profiled companies has been conducted through a meticulous process that involved gathering inputs from primary experts, analyzing their company coverage, product portfolio, and market penetration.
Key companies profiled in this report include Arkema, The Lubrizol Corporation, KUREHA CORPORATION, Resonac Holdings Corporation, APV Engineered Coatings, DAIKIN INDUSTRIES, Ltd., DuPont, ZEON CORPORATION, BASF SE, Targray, Solvay, FUJIAN BLUE OCEAN & BLACK STONE TECHNOLOGY CO., LTD., I.S.T Corporation, Synthomer PLC, Trinseo, Ashland, Sicona Battery Technologies, Northvolt AB, IONIC MATERIALS, INC., SAKUU CORPORATION., PRINCETON NUENERGY.
Recent Industry Developments
Solvay, in June 2022, announced the successful completion of its polyvinylidene fluoride (PVDF) capacity expansion project at the Changshu site in China. The company achieved a doubling of its production capacity for this high-performance polymer ahead of schedule in response to the increasing customer demand for EV batteries.
In January 2022, Arkema accelerated its business development in China by expanding its PVDF capacity. This expansion was undertaken to meet the rising demand from partner clients in the lithium-ion battery market and to support the significant growth in the water filtration, specialty coatings, and semiconductor industries.
KUREHA CORPORATION, in July 2021, revealed plans to construct a new polyvinylidene fluoride (PVDF) plant at its wholly owned subsidiary, Kureha Changshu Fluoropolymers Co., in the Jiangsu Province of China. This expansion project aimed to cater to the growing demand primarily in the automotive sector, particularly electric vehicles (EV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV).
In October 2021, BASF SE and the Karlsruhe University of Technology (KIT) joined forces in a government-funded initiative to explore the potential of multi-layered anodes for lithium-ion batteries.
Key Questions Answered
What are the primary factors and trends influencing binders in the battery market?
How has the global consumption and production of binders in the battery market been affected by COVID-19 and the Russia-Ukraine war?
What are the latest strategies implemented by companies in different countries for the advancement of binders in the battery market, and which startups are specifically focusing on this area?
What governmental regulations or initiatives have contributed to the increased adoption, production, and demand for binders in the battery market?
Which key end-use applications are expected to drive the demand for binders in the battery market, and what are the buyer’s preferences and attitudes towards binders in each country or region?