Study predicts $18B market for lithium battery additives by 2036

A new research study forecasts explosive growth in the lithium-ion battery additives market, projecting it will exceed $18 billion by 2036 as electric vehicle adoption drives unprecedented demand for battery materials.

IDTechEx researchers predict material demand for lithium-ion battery additives will surpass 1.9 megatonnes per year by 2036, according to their report "Additives for Li-ion Batteries & PFAS-Free Batteries 2026-2036: Technologies, Players, Forecasts."

IDTechEx is an independent research organization that analyzes emerging technologies and their markets.

The study identifies battery electric vehicles as a primary growth driver, with binders playing an integral role in electrode structure. Researchers found that while some manufacturers aim to reduce additive usage to lower material consumption, companies increasingly select electrolyte additives for their ability to optimize cell performance.

The research highlights growing concerns about PFAS chemicals present in many battery additives, including binders and electrolytes. The study notes that environmental and health impacts from these substances make future regulations increasingly likely. However, researchers document rising developments in non-PFAS alternatives that could transform the current additive landscape.

Direct lithium extraction market to reach $16 Billion

The same research organization projects the global lithium market will reach $52 billion by 2036, with direct lithium extraction (DLE) capturing 30% of the sector at $16 billion in market value.

IDTechEx's companion report "Direct Lithium Extraction 2026-2036: Technologies, Players, Forecasts" reveals that DLE technologies can produce results in hours compared to traditional brine evaporation processes that require up to two years.

The study found DLE offers more sustainable extraction with over 80% lithium recovery while reducing land and water usage requirements. Researchers identified adsorption processes as the most mature DLE technology, with commercial operations already running in Argentina and China. The study predicts the United States will become a major player by 2036.

The research documents multiple DLE methodologies including adsorption, ion exchange, solvent extraction, membrane, electrochemical, and chemical precipitation processes. Study authors cite faster, more localized lithium production and better responses to price volatility as key drivers for DLE development.

The comprehensive analysis comes as lithium demand surges due to rising electric vehicle adoption and battery energy storage system deployment worldwide.

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