The growth of lithium-ion batteries is happening largely in response to an increase in demand for applications such as electric vehicles and stationary energy storage, in line with global decarbonization goals. IDTechEx's portfolio of Batteries & Energy Storage Research Reports and Subscriptions, covers multiple battery and energy storage options, including the latest developments across the Li-ion market.
Li-ion chemistries
In Li-ion batteries, anode, cathode, and electrolyte types play a key role of determining electrochemical properties and come in a variety of forms. Li-ion cells with graphite anodes are currently the dominant design, while silicon anode cells are expected to take more market share over the next ten years in premium applications. Lithium metal batteries can offer a much higher potential energy density associated with solid-state chemistries, with lithium-sulphur also proving to have very high energy density. However, maintaining a competitive cycle life will be a challenge for these chemistries. IDTechEx's report, "Li-ion Battery Market 2026-2036: Technologies, Players, Applications, Outlooks and Forecasts", covers these battery types in greater detail, covering advantages and disadvantages of each.
Li-ion batteries are known to use insertion anodes and cathodes, in which lithium ions shuttle between electrodes during charging and discharging processes. This battery chemistry in particular is favored for cycle life, voltage, and competitive specific energy and operational temperature, when compared with other ion types and batteries. Sodium-ion batteries are also a well-known option for many applications covered in IDTechEx's research. However, these face their own challenges including prevented diffusion or high charge density causing large electrostatic interactions between ions and host electrodes which can bring on rapid degradation.
Performance qualities of Li-ion batteries
Three key performance metrics most battery manufacturers are concerned with are high energy, fast charging, and long life, however there will always be a trade-off necessary. Fast charging and high energy will both lead to quicker degradation, with fast charging deteriorating active materials quicker and reducing energy density. Materials such as lithium metal and silicon materials, on the other hand, can improve energy density but reduce a battery's cycle life. IDTechEx identifies this trade-off result as 'the battery trilemma'. Developments across these fields will require much R&D by battery manufacturers and therefore come at a large cost likely to only be afforded by big companies that have the resources available.
EV sales and global regulations
Electric vehicles is one of the largest applications for Li-ion batteries worldwide, explored in IDTechEx's report, "Li-ion Batteries and Battery Management Systems for Electric Vehicles 2026-2036: Technologies, Forecasts, and Players", with China currently being the global leader in EV sales. With purchase subsidies and tax incentives now being extended to 2027, this is likely to remain the case for some time. However, regional policies across the world will play a huge role in determining electric vehicle sales.
In Europe, tax incentives vary by country, with overarching regulation targeting carbon emissions penalties rather than incentives. In terms of decarbonization goals, there has been a focus on emissions targets for vehicle fleets in Europe, to achieve a 90% carbon dioxide reduction from tailpipe emissions by 2035, down from a previous aim of a 100% reduction. Other countries outlined in IDTechEx's report have their own incentives for increasing Li-ion production for EVs.
In 2024, approximately 75% of Li-ion production capacity was happening in China, with this figure expected to drop to 55% by 2031. However, fast construction times, existing supply chains and capabilities for quick investments in China may see this figure not falling as far as predicted, despite efforts from Europe and North America to catch up.
For more information, visit IDTechEx's portfolio of Batteries & Energy Storage Research Reports and Subscriptions for the latest developments on battery types, energy storage, and main Li-ion applications.
