Global Lithium ion battery binder market is anticipated to grow at a significant CAGR of 13.5% during the forecast period (2021-2027). The growing lithium ion battery industry owing to its excessive application in consumer electrics and electric vehicles is a key factor driving the growth of the global lithium ion battery binder market. Binders are inert chemicals that hold the active material particles within the electrode of a lithium-ion battery together to maintain a strong connection between the electrode and the contacts. Thus, plays an important role in battery manufacturing. 

The high cost of battery manufacturing through battery binders is a key factor restraining its market growth and promoting manufacturer to invest in low cost alternative technologies. For instance, in May 2020, funded by global trading company ITOCHU Corp. 24M has raised a $56.8 million Series E funding to commercialize its simple, capital-efficient, low-cost SemiSolidTM manufacturing process for grid storage and electric vehicle applications. SemiSolidTM electrodes use no binder, mixing electrolyte with active materials to form a clay-like slurry with unique attributes. As a result, the 24M process eliminates the need for a significant amount of inactive materials and capital-intensive processes like drying and electrolyte filling, thus dramatically reducing manufacturing cost. The growing development of such type of technologies that make no use of binders is a key factor that may restrain growth of the global lithium ion battery binder market.

Impact of COVID-19 Pandemic on Global Lithium ion battery binder Market

COVID-19 pandemic has caused disruptions in the supply chain of battery market. Most of the lithium ion battery manufacturing facilities are situated in Asia-Pacific. Therefore, the major lockdown across the key economies of Asia-Pacific such as India & China have made negative impact on the demand for battery binders. However, with recovering situation the demand for these materials is anticipated to grow in near future. 

Segmental Outlook 

The global lithium ion battery binder market covers segments including type and end-user industry. Based on type, the market is segmented into cathode binder and anode binder. Based on end-user industry, the market is segmented into consumer electronics, automobile, aerospace & Defense, and others.

Global Lithium ion battery binder Market Share by End-User Industry, 2020 (%)

Automobile Segment holds the significant share in the Market

The lithium-ion batteries are highly used in automobile sector owing to their greater stability and safety than Nickel-Cadmium batteries. Additionally, compared to traditional batteries, lithium-ion batteries are preferred due to various features such as fast charging, durability, and have a higher power density for more battery life in a lighter package. The increasing demand for electric vehicles owing to the stringent government rules and regulations to curb environmental pollution is a key factor driving growth of lithium ion batteries and hence lithium ion battery binders market. 

Regional Outlooks

Geographically, the global lithium ion battery binder market report is analyzed based on four major regions including North America, Europe, Asia-Pacific, and Rest of the World (RoW). Among these, North America is anticipated to grow at considerable CAGR during the forecast period due to the growing demand for lithium ion batteries in wearable devices, consumer electronics and the aerospace 

& defense industry. The increasing investments in R&D activities for battery production, battery production facility expansion, are growing market for connected cars are some other factors that are propelling the growth of the market in the region.

Global Lithium ion battery binder Market Growth, by Region 2021-2027

Asia-Pacific Held Prominent Share in the Global Lithium Ion Battery Binder Market

Geographically, Asia-Pacific region held a prominent share in the lithium-ion battery binder market in 2020. The growing consumer electronics industry, electric vehicle industry, and growing renewable sectors across the region has promoted the demand for lithium ion batteries which in turn driving global battery binders market. China is dominating in the Asia-Pacific lithium-ion battery binder market by manufacturing and selling a large number of electric vehicles and developing large battery manufacturing plants in the region. In December 2020, Tata Chemicals Ltd. had announced its plans to start building a manufacturing facility for lithium-ion cells in Gujarat seeking incentives under the Production Linked Incentive Scheme (PLI) scheme. The significant rise in production of lithium ion batteries under such initiatives is likely to create demand for battery binders which in turn will drive the regional lithium ion battery binder market.  

Market Players Outlook

The key players of lithium ion battery binder market include BASF SE, Arkema SA, Solvay SA, Zeon Corp., APV Engineered Coatings, Inc., and so on. Product development and considerable investment in R&D of new binding technologies is the core focus of these major market players. Moreover, the key players of lithium ion battery binder market are actively adopting organic or inorganic market activities to increase their market share. 

Recent Development

• In November 2020, BASF SE has developed a new anode binder series Lucity for Li-ion battery manufacturing. The Licity product range for lithium-ion battery binders is suitable for pure graphite as well as silicon-containing anodes. Licity lithium-ion battery binders prevents electrode swelling, thus enabling higher battery capacities. With the launch of such binder, the company is exhibiting its commitment to economic goals with environmental and social responsibility. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Lithium ion battery binder market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.