The global aluminum-based battery market is anticipated to grow at a CAGR of 2.7% during the forecast period. Aluminum-based battery such as aluminum-ion battery offers the advantage of a volumetric capacity that is four times higher compared to lithium. Additionally, aluminum is the most abundant metal on the earth. The companies are making efforts to make it cost-efficient. For instance, Graphene Manufacturing Group, a clean technology company in Australia is expected to launch graphene aluminum ion in the market in 2021 or next year. The batteries could charge time up to 22 to 60 times faster than lithium-ion batteries. 

Further, the increasing demand for electric vehicles owing to the government support for zero-emission vehicles is offering an opportunity for market growth. The aluminum-air battery is used in electric vehicles owing to its high energy density and safety. The Aluminum-air technology is safer as it uses only a water-based electrolyte that is free from toxins and has a wide range of temperature operability. However, aluminum is easily affected by corrosion due to the presence of carbon dioxide in the air, and when these batteries are stored for a longer period, the electrolyte corrodes the aluminum anode and within a month the battery loses almost 80% of the charge. Additionally, the higher cost is involved in the installation of charging stations for electric vehicles are further hindering the growth of the market.

Impact Of COVID-19 Pandemic On the Global Aluminum-Based Battery Market

The global aluminum-based battery market is hardly hit by the COVID-19 outbreak since December 2019. The COVID-19 pandemic resulted in disruptions in the supply chain of the aluminum-based battery market across the globe. The lockdown imposed by the government led to the decline in the demand for vehicles. The COVID-19 has a tremendous impact on the automotive industry as people were not moving and not purchasing any electric vehicle.  However, the companies started manufacturing batteries. For an instance, Phinergy resumed the development of an aluminum-air battery after the lockdown and aimed to enhance the portfolio in the Indian Market. 

Segmental Outlook 

The global aluminum-based battery market can be segmented based on application and type. Based on Application, the market is bifurcated into Industrial, Automotive, Others. Among the application, the automotive segment held a major market share. Based on type, the market is segmented into aluminum-ion battery and aluminum-air battery. Among type, the aluminum-air battery is expected to hold a major market share during the forecast period. 

Global Aluminum-based battery Market Share by Application, 2020 (%)

Automotive Segment Holds Significant Share in the Market

Based on the application, the market is classified into industrial, automotive, and others. The automotive segment is expected to grow at a steady pace during the forecast period. Rising demand for aluminum-based batteries have been witnessed in the automotive industry. These batteries are used in electric vehicles owing to their advantages over other batteries. The rising shift to green energy sources to minimize the carbon emission is expected to drive the demand for aluminum-based batteries in automotive sector as it is regarded as a safer battery, with denser energy storage capacity and faster charging time. 

Regional Outlook

The market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, France, Spain, Germany, and Rest of Europe), Asia-Pacific (India, Japan, China, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East and Africa, and Latin America). Asia Pacific is projected to exhibit the fastest growth in the global aluminum-based battery market. During the forecast period, Asia Pacific is projected to have a significant share of the market. The factors contributing to the growth of the market include an increase in investment in electric vehicles in India. For instance, Kerala aimed to put 1 million Electric Vehicle Units by 2022 and 6,000 buses in public transport by 2025. Additionally, Telangana aimed to achieve 80% sales targets for 2 and 3-wheeler, 70% for commercial cars such as Ola and Uber, 40% for buses, 30% for private cars, and 15% for electrification of all vehicles by 2025. 

Global Aluminum-based battery Market Growth by Region, 2021-2027

Market Players Outlook

Key players in the market include Energizer Holdings Inc., Phinergy, Power-Sonic Corp., GP Batteries International Ltd., Duracell Inc., and among others. Several strategic initiatives were reported in the market which include mergers & acquisitions, partnerships and collaborations, and new product launches, to stay competitive in the market. For instance, in September 2020, Indian Oil Corp. (IOC) is planning to launch first-of-its-kind aluminum-air batteries that are potentially a more cost-effective alternative to lithium-ion batteries for use in electric vehicles and stationary applications. IOC purchased a minority stake in Phinergy in February 2020. Additionally, in 2018, Phinergy partnered with Yunnan Aluminum Co., Ltd., a china-based company, for the production of highly advanced metal-air batteries.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global aluminum-based battery market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.