Battery Additives Market

Market Definition

The market focuses on the development and application of specialized chemical compounds that improve the performance, efficiency, and durability of batteries. Their functions include enhancing electrical conductivity, preventing dendrite formation, minimizing internal resistance, and stabilizing the battery’s electrochemical environment.

Common additives include conductive carbons, metal sulfates, film-forming agents, and lithium salts. Used across lithium-ion, lead-acid, and emerging battery technologies, these additives support applications such as electric vehicles, grid storage systems, industrial equipment, and portable electronics.

Battery Additives Market Overview

The global battery additives market size was valued at USD 1706.5 million in 2023 and is projected to grow from USD 1860.8 million in 2024 to USD 3589.1 million by 2031, exhibiting a CAGR of 9.84% during the forecast period. Market growth is largely driven by the expansion of the electric vehicle industry, which creates a strong demand for high-performance lithium-ion batteries.

Additionally, innovation in battery chemistry and formulation is fueling advancements in energy density and efficiency, further propelling market growth as manufacturers strive for improved battery performance.

Major companies operating in the battery additives industry are BASF, LG Chem, Guangzhou Tinci Materials Technology Co., Ltd., Huayou Cobalt Co., Ltd., Shepherd Chemical, ULKA Engineering Company, Imerys, 3M, Cabot, Hammond Group, Inc., Arkema, Ascend Performance Materials, SGL Carbon, Imerys S.A., and Orion S.A.

The shift toward high-capacity and fast-charging lithium-ion batteries across sectors, including electric vehicles, renewable energy storage, and portable electronics, supports market growth.

Manufacturers are focused on improving cycle life, thermal stability, and energy density, which highlights the need for advanced additives such as film-forming agents, lithium salts, and conductive carbons. These additives optimize internal battery chemistry, making them essential in next-generation battery designs.

• According to the International Energy Agency's 2023 report, global demand for automotive lithium-ion (Li-ion) batteries surged by approximately 65% in 2022, reaching around 550 GWh, up from 330 GWh in 2021. This significant increase was largely driven by a 55% rise in new electric passenger car registrations.

Key Highlights:

1. The battery additives industry size was recorded at USD 1706.5 million in 2023.
2. The market is projected to grow at a CAGR of 9.84% from 2024 to 2031.
3. North America held a share of 33.24% in 2023, valued at USD 567.3 million.
4. The porous segment garnered USD 606.3 million in revenue in 2023.
5. The lead-acid segment is expected to reach USD 1328.5 million by 2031.
6. Asia Pacific is anticipated to grow at a CAGR of 10.86% over the forecast period.

Market Driver

"Expansion of the Electric Vehicle Industry"

The global transition to electric mobility has accelerated the demand for long-lasting, reliable batteries, bolstering the expansion of the battery additives market. These additives are crucial for enhancing charge acceptance, reducing degradation, and improving safety parameters in EV batteries.

Automakers and battery cell producers increasingly adopt specialized additives to meet regulatory standards and extend battery warranties. This shift in technology adoption across the automotive industry contributes significantly to market progress.

• The International Energy Agency's 2024 report indicates that the demand for electric vehicle batteries continues to rise, fueled by increasing EV sales. In 2023, global demand for EV batteries exceeded 750 GWh, marking a 40% increase compared to 2022, although the growth rate was slightly lower than that of 2021–2022. Electric cars accounted for 95% of this growth,  majority attributed to higher sales volumes, while the remaining 5% resulted from larger average battery sizes, reflecting the growing share of SUVs in EV purchases.

Market Challenge

"Complexity of Integrating Additives into Advanced Battery Chemistries"

A major challenge hampering the expansion of the battery additives market is the complexity of integrating additives into evolving battery chemistries without compromising cell performance, stability, or safety.

As manufacturers transition to high-nickel cathodes and silicon-rich anodes, maintaining compatibility with diverse additives becomes increasingly difficult. To address this challenge, companies are investing heavily in R&D to develop tailor-made additive formulations suited for next-generation battery systems.

Collaborations with battery OEMs and cell designers are accelerating the co-development of solutions that enhance dispersion, electrochemical stability, and cycle life, addressing formulation compatibility issues and facilitating broader commercialization.

Market Trend

"Innovation in Battery Chemistry and Formulation"

Research and development efforts in battery design are leading to the creation of advanced additive formulations tailored for specific performance goals. Additives targeting improvements in ionic conductivity, dendrite suppression, and thermal control are gaining traction in both established and emerging battery technologies.

The need for customized material solutions among manufacturers promotes innovation, which in turn fuels the growth of the battery additives market through sustained product differentiation and technical enhancements.

• In May 2023, Cabot Corporation introduced its ENTERA aerogel particles portfolio, specifically engineered for thermal barrier coatings in electric vehicle (EV) lithium-ion batteries. These aerogel particles provide thermal insulation, enabling the creation of ultra-thin, high-performance thermal barriers. The ENTERA line is designed to help EV and battery manufacturers meet evolving regulatory requirements while offering a lightweight solution with low thermal conductivity and excellent thermal stability.

Battery Additives Market Report Snapshot

Segmentation	Details
By Type	Conductive, Porous, Nucleating, Others
By Application	Lead-acid, Graphene, Lithium-ion, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Conductive, Porous, Nucleating, and Others): The porous segment earned USD 606.3 million in 2023 due to its superior surface area and ion transport capabilities, which enhance electrochemical performance and support higher energy density in advanced lithium-ion batteries.
• By Application (Lead-acid, Graphene, Lithium-ion, and Others): The lead-acid segment held a share of 37.37% in 2023, fueled by its extensive use in automotive starters, industrial power backup systems, and renewable energy storage.

Battery Additives Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

The North America battery additives market share stood at around 33.24% in 2023, valued at USD 567.3 million. Major investments in battery gigafactories across the U.S. and Canada are increasing regional demand for high-performance materials, including specialized additives.

Automotive companies are partnering with battery manufacturers to establish large-scale production facilities, fostering a robust local supply chain for additive materials used in cathode and electrolyte formulations.

• In October 2024, Lyten announced an investment exceeding USD 1 billion to establish the world’s first gigafactory for lithium-sulfur batteries. Phase 1 of the facility is expected to begin operations in 2027, with production of cathode active materials (CAM), lithium metal anodes, and full assembly of lithium-sulfur battery cells in cylindrical and pouch configurations.

Additionally, North America is witnessing a rapid expansion of utility-scale renewable energy projects, particularly solar and wind farms in states such as Texas, California, and Alberta.

These projects increasingly rely on lithium-ion energy storage systems to improve charge-discharge stability and performance in fluctuating grid conditions, thereby supporting regional market growth.

Asia Pacific battery additives industry is estimated to grow at a robust CAGR of 10.86% over the forecast period. Asia Pacific holds a dominant position in processing critical minerals such as lithium, graphite, and nickel, which are eky inputs for battery manufacturing.

The establishment of additive formulation facilities near these raw material hubs enables faster, cost-efficient production of advanced battery chemistries, boosting demand for performance-enhancing. Furthermore, public-private partnerships and national-level battery innovation programs are advancing domestic additive technology development.

With more additive suppliers meeting local regulatory standards such as REACH, manufacturers gain streamlined access to high-quality, compliant materials, supporting regional market growth.

• In April 2024, Ascend Performance Materials received REACH approval in Korea for its electrolyte additive, Trinohex Ultra, used in lithium-ion batteries. This regulatory clearance allows the company to import up to 1,000 metric tons of the U.S.-manufactured additive annually under Korea’s chemical registration and evaluation framework. The approval   increased its accessibility for battery manufacturers in the Korean market.

Regulatory Frameworks

• In the U.S., the Environmental Protection Agency (EPA) enforces the Resource Conservation and Recovery Act (RCRA), which governs the disposal of hazardous waste, including certain chemicals used in battery additives. Additionally, the Toxic Substances Control Act (TSCA) requires manufacturers to report and maintain records of chemical substances used in battery production.
• Europe’s battery additives industry is governed by the REACH regulation, requiring chemical registration and safety assessments. The EU’s Battery Directive 2006/66/EC ensures the collection and recycling of batteries. Post-Brexit, the UK has implemented its own REACH framework. These regulations are critical in protecting human health and minimizing environmental impacts.
• Japan enforces stringent regulations on battery additives under the Industrial Safety and Health Act, which sets workplace safety standards. The Law for the Promotion of Effective Utilization of Resources promotes recycling and sustainable use of resources, including additives in batteries. These frameworks aim to reduce environmental impacts while maintaining safety in battery production and use.

Competitive Landscape

Key players operating in the battery additives industry are prioritizing the development of innovative products to gain competitive edge. By introducing cutting-edge solutions such as advanced graphene-based additives, manufacturers are enhancing the performance, efficiency, and longevity of lithium-ion batteries.

These innovations are critical as they meet the growing demand for higher energy storage capacities and faster charging times. By improving material properties such as electrical conductivity and charge transfer resistance, industry players are addressing current industry requirements while advancing next-generation energy storage technologies.

• In November 2024, Graphene Manufacturing Group Ltd. introduced SUPER G, a graphene slurry designed to improve the performance of lithium-ion batteries.  Offering high electrical conductivity, low charge transfer resistance, and superior density, SUPER G provides battery manufacturers with a more efficient and durable alternative to conventional carbon-based additives.

List of Key Companies in Battery Additives Market:

• BASF
• LG Chem
• Guangzhou Tinci Materials Technology Co., Ltd.
• Huayou Cobalt Co., Ltd.
• Shepherd Chemical
• ULKA Engineering Company
• Imerys
• 3M
• Cabot
• Hammond Group, Inc.
• Arkema
• Ascend Performance Materials
• SGL Carbon
• Imerys S.A.
• Orion S.A.

Recent Developments (M&A/Agreements/Product Launch)

• In March 2025, LG Chem introduced its LG Precursor Free (LPF) cathode materials at Interbattery 2025 in Seoul, becoming the first Korean company to initiate mass production of precursor-free cathode materials.
• In October 2024, LG Chem unveiled a temperature-responsive Safety Reinforced Layer (SRL),   designed to suppress thermal runaway in lithium-ion batteries. This composite material  functions as a fuse by adjusting electrical resistance in response to temperature changes, interrupting current flow during overheating.
• In September 2024, Cabot Corporation received USD 50 million from the Department of Energy (DOE) to establish the first commercial-scale facility in the U.S. for producing critical components for lithium-ion batteries in Van Buren Township. This grant, part of the DOE's Infrastructure Investment and Jobs Act's Battery Materials Processing and Battery Manufacturing funding initiative, is part of a broader USD 355 million investment in Michigan's battery manufacturing sector.
• In April 2024, Arkema acquired a 78% stake in Proionic, a start-up specializing in ionic liquids, essential components for next generation lithium-ion batteries.