The electrification of the automotive industry continues at a rapid pace, and more and more traditional automotive companies have committed to producing electric vehicles. That growth is expected to fuel sustained and growing demand for lithium-ion batteries, with the market expected to reach $184.15 billion by 2030.
The latest estimates based on a market research study by Custom Market Insights put the size and share of the global lithium-ion battery market at $48.8 billion by the end of the year, a growth of over $6 billion over last year. Increased demand in the coming years is projected to boost the growth of the lithium-ion battery market to US$184.15 billion by 2030 at a CAGR of 18.5%.
Image source: Custom Market Insights
Demand will not only come from the conversion of electric vehicles: lithium-ion batteries will play a vital role in the transition of the electric grid, storing energy from renewable sources and releasing it as needed. It is an attractive solution because lithium-ion batteries are cheaper than many of the alternatives, have low self-discharge rates and are heat resistant, making them ideal solutions in warmer climates, remote locations and in thermal control applications. second Personalized Market Insights.
“The key factors driving the market are the increased demand for electric vehicles and the increase in battery usage in the power grid and energy storage systems,” according to the report overview.
They are also a vital component for many technological devices today, prized for their high energy density and higher power output than many other batteries, and the demand for their use in consumer electronics goods is expected to continue. to grow.
Investing in Lithium-Ion Battery Demand and Through Metals
KraneShares recently launched the KraneShares Electrification Metals (KMET) ETF, which offers targeted exposure to the metals needed for the electrification and clean energy transition of the global economy towards net zero emissions.
The fund aims to track the Bloomberg Electrification Metals Index and is composed of copper, nickel, zinc, aluminum, cobalt and lithium futures contracts. These metals are all critical components for batteries, electric vehicles and the renewable energy infrastructure created and expanded as countries aim for net zero emissions by 2050 to reduce global warming.
KMET has an expense ratio of 0.79% and is part of KraneShares’ climate-focused range of funds.
For more news, information and analysis, visit the Climate Insights channel.
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