Batteries are critical in the global energy transition to maintain supply and demand balance in the power industry. The ever-increasing demand for battery technology raises worries about raw material availability and environmental implications. Due to the dominance of the fully marketed anode material, graphite, the market is still in its early stages. Graphite (both artificial and natural graphite) is used as an anode active material in around 85% of commercial LIBs. As a result of a lack of demand, hard carbon manufacturing capacity is constrained. However, the market for hard carbon is likely to accelerate with the successful commercialization of sodium-ion batteries, as hard carbon is believed to be the most promising anode material for commercial SIBs that can be used in large numbers.
Segments of the Market
The global hard carbon market is segmented based on type and end-user. Based on type, it is sub-segmented into lithium-ion batteries and sodium-ion batteries. The market is divided into three categories based on application: power batteries, digital batteries, and energy storage batteries.
Recent Developments
Market players such as Kuraray Co., Ltd., Aekyung Industrial Co., Ltd., JFE Chemical Corporation, Wuhan Bixidi Battery Material Co., Ltd., Stora Enso Oyj, Xiamen Lith Machine Limited, HayCarba Group, and others are assisting in the global hard carbon market’s advancement through various mergers, acquisitions, and new technological innovation activities. Some of the recent developments include:
• In January 2022, Faradion, a UK start-up creating sodium-ion batteries, was purchased by Reliance Industries for $135 million. Reliance will invest an additional $35 million in Faradion to advance the commercialization of its technologies, which include electric car batteries. Reliance plans to manufacture sodium-ion batteries in India using Faradion's technology.
• In December 2022, in Fuyang, Anhui Province, the commercial sodium-ion battery production plant was completed. Hina Battery's production line of sodium-ion batteries was backed by CTG's two affiliates as well as the Fuyang city government. They have joined forces to build the world's first sodium-ion battery mass manufacturing plant. The line will be built in two phases, the first with a capacity of 1 GWh and the second with a total capacity of 5 GWh.
• In December 2022, EVE Energy, one of the world's top battery technology businesses, will launch a CNY2 billion research and development facility in Huizhou, Guangdong province. The 145,000-square-meter facility contains the Power Battery Research Institute and the Battery System Research Institute, as well as electrical performance and safety testing laboratories and R&D labs. Precision testing and analysis of cylindrical and prismatic cells, as well as battery management and energy storage systems, will be performed at the facility.
Conclusion
The global hard carbon market was worth $430 million in 2021, and it is expected to expand to $1.6 billion by 2018, at a CAGR of 20.9% over the forecast period, according to OMR Research. Lithium-ion batteries (LIBs) now dominate the battery business, which uses raw minerals such as cobalt, lithium (Li), and natural graphite. According to the United States Geological Survey, global graphite mining output was 954,000 tons in 2020, a 14% decrease from the previous year, while global graphite consumption was 2.7 million tons in 2020. Due to the scarcity of raw resources, rapidly increasing demand might disrupt the supply chain. New battery materials, such as sodium ion batteries (SIBs), are emerging to prevent such essential raw material shortages. Since sodium is more plentiful than the metals used in lithium-ion batteries, it is less costly and more ecologically friendly at the point of manufacture. Still, hard carbon-based lithium-ion batteries have reached full commercialization and are suited for a wide range of applications, including consumer devices such as smartphones and PCs, industrial robots, manufacturing equipment, and cars. In contrast, sodium-ion batteries are a promising technology for electric cars, the energy grid, and other uses. Electric vehicle (EV) batteries and rechargeable batteries used in machinery and maritime equipment, industrial automation systems, agricultural machinery, defense and aviation, electronics, oil and gas, and civic infrastructure are examples of hard carbon power battery applications. Such factors are assisting in the market’s growth.