The global lithium-ion battery market is expected to reach its peak and then decline within the next twenty years, as newer and more efficient battery technologies emerge. This prediction is based on the flood of research being conducted on alternative ion-batteries, such as sodium-ion and aqueous zinc-ion batteries.
These alternative batteries boast a 40% lower cost, superior safety, and better performance in certain aspects. Moreover, there are new demands emerging in the market that lithium-ion batteries cannot meet, such as the need for high-power and pulse storage for applications such as electromagnetic weapons, ultra-high-speed trains, and thermonuclear power generation.
The decline in the lithium-ion battery market will also be influenced by the decrease in demand for electric cars, which are currently the largest segment for these batteries. With the increasing commoditization of electric cars and the banning of them in cities, the demand for lithium-ion batteries will also decrease. Additionally, advancements in technology, such as the development of Second Generation 6G Communications, may render the need for on-board energy storage obsolete.
Another factor contributing to the decline of lithium-ion batteries is the growing market for Long Duration Energy Storage (LDES). With the increasing demand for energy storage for longer periods of time, alternatives to lithium-ion, such as pumped hydro storage, compressed air storage, and gravity storage, are becoming more popular due to their scalability, safety, and lower cost.
The goalposts for energy storage have shifted, as consumers and industries now require batteries that are non-flammable, minimally toxic, with long life spans, and minimal ancillary equipment. Unfortunately, lithium-ion batteries have not made significant progress in these areas, making them less desirable in the market.
Alternative ion-batteries, such as sodium-ion and zinc-ion batteries, are now being developed and are expected to take over the market due to their lower cost and better performance. In fact, 40 production plants are currently being built for sodium-ion batteries, which use abundant and less expensive materials such as sodium, iron, and manganese.
While lithium-ion batteries will still have a presence in the market due to their familiarity and production capacity, it is predicted that their value sales will peak within the next 20 years. This decline could happen as early as 2030, depending on the strength of these newer disruptors.
In order to fully understand the changes happening in the energy storage market, Zhar Research has conducted in-depth reports that cover topics such as Long Duration Energy Storage, Redox Flow Batteries, Zinc-Based Storage, Lithium-Ion Capacitors, and Supercapacitors. These reports provide insight into the market, technology roadmaps, and key players in the industry.
As the market continues to shift towards alternative ion-batteries and the demand for longer duration energy storage increases, it is important to stay informed and adapt to these changes.
