Dry Battery Electrode Market - Forecast(2024 - 2030)

The Dry Battery Electrode market size is forecast to reach USD 4.42 billion by 2029, after growing at a CAGR of 22.4% during the forecast period 2024-2029.  Dry battery electrode (DBE) is a novel concept and technique in the battery industry that advances electrode production using a "powder to film" method. When compared to wet process manufacturing (covering the electrode foil with a wet, chemical slurry), the approach saves time and energy while also taking up less space. Over the last few years, the Dry battery electrode has gained popularity as a viable alternative to the difficult and time-consuming conventional wet process. As the worldwide electric vehicle (EV) industry is expected to develop rapidly in the next decades, Dry electrode batteries are becoming increasingly popular due to their low manufacturing costs, sustainability, and improved performance.

The report “Dry Battery Electrode Market– Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of Dry Battery Electrode.

By Type: Lithium-Ion Batteries, Solid State Batteries, Sodium-Ion Batteries, Lithium Metal Batteries and Others.

By Application: Electric Vehicles, Energy Storage, Electronics, Power Tools, and Others

By Geography: North America, South America, Europe, APAC

• In applications such as electric cars, increasing energy density is critical to obtaining extended range and quick charging. As a result, the use of dry electrode technology will open up novel opportunities and increase possibilities for the development of electric vehicles, energy storage, and other fields.

• Dry Battery Electrode is more affordable than wet coating processes. As a result, it can reduce the cost of producing EV batteries while also saving labor time.

• The future of high-safety and high-energy batteries is anticipated in solid-state batteries (SSBs). Mass manufacture of SSBs necessitates a unique industrial design that varies from standard methods. The dry battery electrode (DBE) approach is a developing idea that has typical compatibilities with SSBs, attracting substantial interest.

Lithium Ion Batteries led the market with a leading market share in 2023. This dominance is primarily due to the widespread adoption of lithium-ion batteries across various applications, including electronics, electric vehicles, energy storage systems, and grid-level applications. Asia is home to the majority of existing Lithium-ion battery manufacturing facilities, with China accounting for over 75% of worldwide capacity. Manufacturers in Asia are also eager to use dry electrode coating. This is likely to happen towards the middle of the decade. LG Energy Solutions, the current Lithium battery producer, anticipates that dry coating will lead to greater energy density batteries.

The 4680 battery has a diameter of 46mm and a height of 80mm, and its capacity is approximately five times that of a standard 21700 battery. This battery employs ternary lithium-ion battery technology, which offers greater energy density and cycle life. The launch of Tesla's 4680 battery is undoubtedly a significant advancement in the realm of battery preparation for dry electrode technology. On February 5, 2019, Tesla acquired a 55% premium for Maxwell, a manufacturer of supercapacitors. It primarily focused on Maxwell's unique dry electrode technology and learned from moving to the battery pole piece manufacturing method to create technological reserves for future solid-state batteries.

In 2023, electric vehicles held the majority of the dry battery electrode market. Adopting Dry Battery Electrode (DBE) technology would potentially more than only ease the future of producing EV batteries, due to the many advantages: Environmentally friendly: DBE removes the requirement for solvents and other chemicals included in standard wet coating processes that are harmful to the environment and human health. Eliminating the slurry process would also help to minimize energy usage during manufacture.

 DBE can enhance the performance of EV batteries by enabling more accurate and uniform electrode coating, which leads to better energy density, longer driving range, and faster charging times. DBE increases the safety of EV batteries by lowering the possibility of short circuits and other safety risks since it is less prone to leakage and overheating. Based on the benefits, dry electrode coating technology is an important technology for the EV sector. It is scalable, compatible with existing lithium-ion battery chemistry, and has the potential for usage in solid-state batteries.

According to the International Energy Agency (IEA), the electric vehicle industry is expanding at an exponential rate, with sales exceeding 10 million by 2022. The ratio of electric vehicles in overall sales has more than quadrupled in three years, rising from roughly 4% in 2020 to 14% in 2022. The growing adoption of electric vehicles, coupled with government incentives and regulations aimed at reducing carbon emissions, boosts the demand for high-performance batteries like Dry Electrode Batteries.

The APAC region in the dry battery electrode market is anticipated to hold a major share during the forecast period (2024-2029).  Asia is one of the largest and fastest-growing markets for electric vehicles, driven by factors such as urbanization, rising incomes, and government support. The increasing adoption of EVs in countries like China, Japan, India, and South Korea creates a substantial demand for high-performance batteries, including batteries, to power these vehicles. On December 1, 2022, GI Tech, a developer of secondary battery and hydrogen battery electrode products, stated that it had signed an MOU with Greenergy to develop a dry electrode technology.

Countries, particularly China, Japan, and South Korea, are investing heavily in research and development of advanced battery technologies. Research institutions, universities, and companies in these countries are actively engaged in developing innovative dry electrode materials, manufacturing processes, and battery management systems to improve performance, safety, and cost-effectiveness. For instance, Ayaka Yonaga et al., in partnership with Kyushu University, presented a paper in the Journal of Power Sources on solvent-free dry electrode manufacturing for carbon neutrality and high-performance lithium-ion batteries on November 15, 2023.

As overall energy demand continues to rise, particularly with the fast-growing electromobility sector, there is a pressing need to reduce the energy consumption and environmental impact associated with battery manufacturing. For instance, The Federal Ministry for Economic Affairs and Energy (BMWi) projects that Germany will consume around 655 terawatt hours of electrical energy in 2030, an almost 20% increase.  However, the world's total energy needs are steadily growing. The rapidly expanding electromobility sector is thus seeking for innovative ways to minimize the energy required to produce batteries, allowing them to be as cost-effective and environmentally friendly as possible. Conventional processes often involve toxic solvents, require significant space, and consume large amounts of energy. On 05 September 2021, the development of innovative technologies like DRYtraec by the Fraunhofer Institute for Material and Beam Technology IWS presents a promising solution.

The development of DRYtraec and its potential to revolutionize the production of battery electrodes aligns with the increasing demand for sustainable and efficient energy storage solutions, thereby serving as a key driver for the dry battery electrode market.

• Extended Lifespan Revolution: Dry Battery Electrode Propels EV Battery Durability, Cost Savings, and Market Growth:

Dry Battery Electrode technology plays a pivotal role in extending the lifespan of EV batteries. Traditional lithium-ion batteries often suffer from degradation over time due to factors like electrode wear and electrolyte breakdown. However, Dry Battery Electrode solutions mitigate these issues by enhancing electrode stability, reducing degradation, and prolonging the battery's operational life. This extended lifespan revolutionizes EV battery performance, making them more reliable and durable over the long term.

The extended lifespan enabled by DBE technology translates directly into cost savings for EV owners and manufacturers. With EV batteries lasting longer before needing replacement or refurbishment, owners benefit from reduced maintenance costs and lower total cost of ownership over the vehicle's lifespan. Moreover, manufacturers can achieve cost efficiencies by producing longer-lasting batteries, reducing warranty claims, and improving customer satisfaction. DBE's role in cost savings enhances the economic viability and competitiveness of EVs in the automotive market.

On June 8, 2023, Koenig & Bauer AG today signed an agreement to collaborate with Volkswagen subsidiary Powerco SE to develop sustainable battery cell manufacture. Koenig & Bauer will develop a machine for the industrial powder coating of electrodes. Dry coating is a sub-process in multi-stage battery cell manufacture.

Dry battery electrodes have the potential to significantly reduce costs and environmental impact compared to traditional slurry-based methods. However, drawbacks in material processability pose a challenge to achieving the desired electrode quality and performance. Binders are essential for maintaining the structural integrity of electrode materials and facilitating their adhesion to the current collector. However, selecting the appropriate binder and ensuring its uniform dispersion within the electrode matrix without agglomeration or phase separation can be challenging. Improper binder selection or inadequate dispersion can lead to electrode delamination, reduced mechanical stability, and degradation of battery performance.

In 2023, the Major players in the dry battery electrode market are AM Batteries (AMB), Maxwell Technologies, Fraunhofer IWS, LiCAP Technologies, Shenzhen Tsingyan Electronic Technology Co., Ltd. and Others.

On April 15, 2024, AM Batteries, a pioneer in lithium-ion dry-electrode technology, announced that it will collaborate with Tokyo-based Zeon Corporation (Zeon) to develop dry battery electrode (DBE) production using a unique and revolutionary binder.

On Dec 04, 2023, AM Batteries, a pioneer in lithium-ion dry electrode technology, announced that it completed a $30 million Series B fundraising round headed by Toyota Ventures. The new investment includes strategic corporate assistance from Porsche Ventures and Asahi Kasei.

On November 16, 2023, ONGOAL TECH and Tsingyan Electronics signed a strategic partnership agreement, reflecting a cooperative effort to develop the research and commercial application of the dry electrode front-end process.