Despite limited reserves of critical mineral resources

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Future innovations are expected to shape the future of lithium batteries, with the integration of new materials playing a major role in increasing energy density and reducing raw material costs, which will lower the cost of cells and battery packs. Among these, new electrolyte chemistries are the most important. These formulations are needed to develop negative and positive active materials for the next generation of lithium batteries.

In the field of battery chemistry, lithium nickel manganese cobalt (NMC) chemistry has become the market leader due to its superior energy capacity, especially in terms of driving range, making it more attractive compared to cheaper and safer lithium iron phosphate (LFP) batteries. Although energy density is a key factor in battery selection, the qatar number data use of LFP technology in China is not subject to patent fees until 2022, which also affects the market acceptance of LFP technology.

NMC batteries will have a global market share of just over half in 2023, and a market share of almost 70% in Europe, and is expected to grow to 77.2% by 2030. In contrast, LFP batteries will have a market share of just 5.2% in Europe in 2023, and are expected to decline further to 0.5% by the end of the forecast period. In the US market, LFP batteries are expected to have a market share of 20% by 2030, while NMC batteries will account for 50.2% and NMC-aluminum variants will account for 15.3%.

Europe and the United States, the market share growth of NMC batteries is still significant. Mining of the cobalt and nickel used in NMC batteries is concentrated in the Democratic Republic of Congo and Indonesia. Currently, most of the materials are processed into battery compounds and positive electrodes in China. Although the United States and the European Union have adopted appropriate laws to ensure the security of supply and processing of strategic minerals, establishing a complete supply chain from mines to processing facilities will take a long time.