Lithium-Ion Battery Solvent Market To Reach $1,326.64 Million By 2030

Lithium-Ion Battery Solvent Market Growth & Trends

The global lithium-ion battery solvent market size is anticipated to reach USD 1,326.64 million by 2030, registering a CAGR of 18.1% during the forecast period, according to a new report by Grand View Research, Inc. This growth is attributed to the rising demand from electric vehicle (EV) producers and the growing interest from smartphone makers, which propel the demand for electrolyte solvents in lithium-ion batteries. Dimethyl Carbonate dominated the market with a market share of 33.2% in 2023. DMC plays a significant role in the li-ion battery industry, particularly as a solvent in the manufacturing process. Its excellent properties, such as low toxicity, high dielectric constant, and good solvency, make it an ideal component for the electrolyte solution in li-ion batteries. DMC's effectiveness in dissolving electrolyte salts contributes to the efficient transport of li-ions between the anode and cathode, which is crucial for the battery's performance.

Electric vehicles dominated the market with a market share of 43.6% in 2023. EV represents a significant application within the li-ion battery solvents market, primarily due to the core role that li-ion batteries play in EV technology. As the demand for EVs continues to grow globally, driven by a collective push towards sustainable and eco-friendly transportation options, the need for high-performance li-ion batteries, and thus solvents, is also rising. Asia Pacific dominated the market with a market share of 47.7% in 2023. Asia Pacific is the largest regional market and is expected to remain dominant over the forecast period. This is due to significant demand for li-ion batteries, primarily from India, China, and Japan, primarily for applications in the automotive and electronics industries.

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Lithium-Ion Battery Solvent Market Report Highlights

• The EV segment held the largest revenue share of 43.6% in 2023. The increasing demand for eco-friendly, sustainable vehicles is a major driver. As the demand for EVs continues to grow globally, driven by a collective push towards sustainable and eco-friendly transportation options, the need for high-performance li-ion batteries is also growing

• Asia Pacific is the dominant regional market and held a revenue share of 47.7% in 2023. The rising adoption of EVs in the region is set to boost the li-ion battery solvent sector

• In July 2022, The UBE Corporation initiated a feasibility study for establishing a construction site in Louisiana, U.S., to produce Dimethyl Carbonate (DMC) and Ethyl Methyl Carbonate (EMC), key components of the solvent for electrolytes in lithium-ion batteries

• The company plans to build a production plant with capacities of 100,000 metric tons per year of DMC and 40,000 metric tons per year of EMC. The operations are expected to commence in the second half of fiscal 2025.

Lithium-Ion Battery Solvent Market Segmentation

Grand View Research has segmented the global lithium-ion battery solvent market on the basis of type, end use, and region:

Lithium-Ion Battery Solvent Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Ethylene Carbonate (EC)

• Propylene Carbonate (PC)

• Dimethyl Carbonate (DMC)

• Ethyl Methyl Carbonate (EMC)

• Other Types

Lithium-Ion Battery Solvent End Use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• EV

• Consumer Electronics

• Energy Storage

• Other End Uses

Lithium-Ion Battery Solvent Region Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Central & South America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • Saudi Arabia

List of Key Players in the Lithium-Ion Battery Solvent Market

• UBE Corporation

• OUCC

• Dongwha Electrolyte

• Shenzhen Capchem Technology Co., Ltd. (“Capchem”)

• BASF SE

• Mitsubishi Chemical Corporation

• Zhangjiagang Guotai Huarong New Chemical Materials Co., Ltd.

• Huntsman International LLC

• Shandong Lixing Advanced Material Co., Ltd.

• Lotte Chemical