The Lithium Silicon Battery Market in Asia Pacific projected to grow at the highest CAGR from 2022 to 2027.

The Asia Pacific is predicted to have the highest CAGR in the forecast period. The region consists of many developing economies; governments in these countries are working toward the electrification of the automotive sector. Moreover, the increasing population in the region contributes to the high demand for consumer electronics such as mobile phones, tablets, laptops, and others. The disposable income of the population is likewise promoting the growth of consumer electronics segments.

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Similarly, the rising population has increased energy demands, resulting in the use of energy storage systems installation. Moreover, the region is the largest consumer electronics manufacturer, with the highest market share in the forecast period. Hence, the APAC lithium silicon battery market is anticipated to grow at the highest CAGR.

DRIVERS: Enhanced energy density of lithium silicon batteries

Lithium-ion batteries with graphite anodes are highly efficient and used in various applications, from small consumer electronics to large grid energy storage systems. Its high usage in anodes has ensured strong global demand for graphite; however, battery manufacturers have faced supply delays as the world is dependent on China for graphite. Researchers have predicted a huge demand-supply gap for graphite in the coming years. Furthermore, despite its efficiency, graphite does not provide energy rapidly or allow compact, high-capacity applications; this has driven attention toward alternatives such as silicon.

The addition of silicon in anodes can intensify the energy density of the battery along with its capacity. Substituting silicon for graphite as the primary material would improve its ion absorption capacity because each silicon atom can accept up to four lithium ions; in comparison, six carbon atoms in a graphite anode take in just one. Silicon anodes can potentially change li-ion batteries significantly due to their high energy density compared with other metal anodes. They can hold roughly ten times the number of electrons as graphite, leading to lithium-ion batteries with 20–40% higher energy density.

RESTRAINTS: Expansion property of silicon and potential for damage to battery

Lithium-ion batteries have proven their cost-effectiveness and performance in several applications such as consumer electronics, energy storage systems, and electric vehicles. While research has helped improve their performance, these batteries cannot hold a charge for long periods, restricting their use in long-distance fully electric vehicles. To overcome the energy capacity problem, research has moved to better-performing silicon materials to improve the capacity and battery density. However, silicon comes with the issue of material expansion. It can swell up to 300% of its normal size when fully charged, which could break the electrode’s outer filming. The expansion of silicon can cause permanent structural damage to the battery, especially during the first charging cycle. Current research suggests that adding small amounts of silicon to the graphite electrodes to increase the energy density is safe and reliable. However, more research is required before sufficient safety is ensured.

OPPORTUNITIES: Fast-growing demand for EVs

EVs use lithium-ion batteries to extract power; these batteries are popularly used in the automotive sector. The widespread use of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) has boosted the adoption of lithium-ion batteries, which is expected to increase further in the future. The market for EVs for transportation is rapidly evolving due to their energy-saving, pollution-reducing nature. Many automobile companies have already launched their EV model—for instance, Tesla Motors, Inc. (US) has already established a fair market share and become one of the leading manufacturers of high-power EVs.

Other automobile companies such as Toyota Motor Corporation (Japan), Hyundai Motor Company (South Korea), and Ford Motor Company (US) are also involved in the production of EVs. According to International Energy Agency (IEA), the adoption of EVs at the end of the decade is expected to grow by nearly 30% of the current scenario.

CHALLENGES: Expensive and complex production process

Manufacturing silicon anodes or silicon materials requires very high-end equipment; silicon cell fabrication costs are also very high. The development process of silicon material involves very high complexities that can modify raw silicon material. The modifications that make it reliable involve complicated processes to ensure that silicon expansion does not damage the battery. The choice of raw material is also a major factor affecting the final cost. In addition, several nanostructures and morphologies involve extensive and rather costly production steps, which makes them impractical for large-scale industrial production. It is, therefore, a challenge for battery manufacturers to obtain highly efficient electrodes at low costs. Hence, the production costs must be reduced to make silicon anodes cost-effective compared to graphite anodes.

The market for automotive application is expected to grow at an impressive growth rate during the forecast period

The automotive segment will majorly contribute to lithium silicon battery industry demand over the forecast period. EVs are gaining market share in the automotive industry due to the adoption of low-emission automobiles and government initiatives. It is estimated that petrol and diesel automobiles will be banned by the next decade, and EVs will dominate the market. However, EVs have several drawbacks, such as long charging times and a limited driving range. This has pushed manufacturers to collaborate with or invest in battery manufacturers to improve capacity, performance, charge times, and driving range. For instance, Porsche AG has invested in and partnered with Group14 Technologies, Inc. (US) to provide lithium silicon cells, which the automotive company plans to use in future EVs.