South America Electric Vehicle Battery Materials Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 0.13 Billion |
| Market Size (2030) | USD 0.21 Billion |
| CAGR (2025 - 2030) | 9.66% |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Electric Vehicle Battery Materials Market Analysis
The South America Electric Vehicle Battery Materials Market size is estimated at USD 0.13 billion in 2025, and is expected to reach USD 0.21 billion by 2030, at a CAGR of 9.66% during the forecast period (2025-2030).
- Over the medium term, factors such as rising growth in electric vehicle sales and supportive government policies and regulations are expected to be among the most significant drivers for the South America Electric Vehicle Battery Materials Market during the forecast period.
- On the other hand, the lack of battery material production facilities, leading to heavy reliance on imports, poses a threat to the South America Electric Vehicle Battery Materials Market during the forecast period.
- Nevertheless, continued efforts are being made to develop advanced battery technology. This factor is expected to create several opportunities for the market in the future.
- Brazil is expected to witness significant growth and will likely register the highest growth during the forecast period. This is due to the presence of a significant vehicle manufacturing and sales industry in the region.
South America Electric Vehicle Battery Materials Market Trends
Lithium-ion Batteries to Dominate the Market
- The South American electric vehicle (EV) battery materials market hinges significantly on lithium-ion batteries. These batteries, being the most prevalent in the electric vehicle realm, stand out for their blend of energy density, efficiency, and durability, making them a linchpin in modern electric vehicle technology.
- Over the past decade, strides in battery technology and manufacturing have not only cut costs but also amplified performance and reliability, heightening the appeal of lithium-ion batteries to manufacturers and consumers.
- In recent years, there has been a downward trend in lithium-ion battery and cell pack prices, enhancing their allure to end-users. After a slight uptick in 2022, prices dipped again in 2023, with lithium-ion battery packs hitting a historic low of USD 139/kWh, marking a 14% drop.
- This battery segment comprises a range of materials, each playing a vital role in the battery's overall performance. These materials are selected for their ability to boost energy density, cycle life, and thermal stability, which are crucial factors for the automotive sector. Notably, nickel-rich cathode materials are favored for their high energy capacity, directly translating to extended driving ranges—a key selling point for consumers and market competitiveness.
- The region's growing electric vehicle appetite has triggered a surge in lithium-ion battery demand, prompting battery manufacturers to invest in material production facilities. This strategic shift aims to meet the rising demand for lithium batteries, both domestically and globally. Coupled with ongoing battery tech advancements, the market is poised for sustained growth as electric vehicle adoption climbs.
- For instance, in April 2023, China's BYD Co Ltd, the world's leading electric vehicle (EV) manufacturer, is set to construct a lithium cathode factory in Chile's Antofagasta region with an investment of USD 290 million. This announcement was made by Chile's economic development agency, CORFO. BYD Chile has been designated as a recognized lithium producer by the Chilean government, as confirmed by CORFO. This recognition grants the company privileged access to preferential rates for lithium carbonate allocations.
- Given these factors, the dominance of the lithium-ion battery segment in the market is projected for the forecast period.
Brazil to Witness Significant Growth
- Brazil plays a pivotal role in the South American electric vehicle (EV) battery materials market, leveraging its abundant natural resources and growing industrial capabilities. The country's vast reserves of critical battery materials, particularly lithium, nickel, and graphite, position it as a potential powerhouse in the regional and global supply chain for electric vehicle components.
- Brazil's lithium deposits, concentrated in the states of Minas Gerais and Ceará, have attracted significant attention from both domestic and international mining companies seeking to capitalize on the growing demand for this crucial battery metal.
- The Energy Institute Statistical Review of World Energy reported that in 2023, the country's lithium reserves stood at 4.9 thousand tonnes of lithium content. This marked a significant increase from the 2.6 thousand tonnes recorded in 2022, reflecting an impressive growth rate of 88.5%. Such a surge underscores the nation's substantial lithium reserves, a factor that bodes well for the burgeoning battery material market, especially in the context of electric vehicles.
- The country's nickel reserves, primarily found in the state of Goiás, further enhance its strategic importance in the electric vehicle battery materials landscape. Additionally, Brazil boasts substantial graphite resources, with significant deposits located in Minas Gerais, Bahia, and Ceará, positioning the country as a critical player in the production of anode materials for lithium-ion batteries.
- The Brazilian government has recognized the strategic importance of the electric vehicle battery materials sector and has implemented various initiatives to foster its development. These efforts include investment incentives, research and development support, and regulatory frameworks aimed at promoting sustainable mining practices and local value addition.
- For instance, in April 2024, Sigma Lithium, in a strategic move, has greenlit a USD 100 million capital expenditure for Phase 2 of its Greentech Industrial Plant in Brazil. By 2025, this investment aims to ramp up the annual production capacity of its Quintuple Zero Green Lithium from 270,000 tons to an impressive 520,000 tons. With the expansion, sanctioned by Sigma's board, the company is poised to churn out sufficient lithium concentrate to fuel an estimated 1.8 million electric vehicles (EVs).
- The National Mining Agency (ANM) has streamlined licensing processes for battery material projects. At the same time, the Brazilian Development Bank (BNDES) has established financing programs to support companies involved in the electric vehicle supply chain. These measures have begun to attract both domestic and foreign investments, with several major mining companies and battery manufacturers exploring opportunities in the country.
- Therefore, Brazil is expected to witness significant growth during the forecast period, as mentioned above.
South America Electric Vehicle Battery Materials Industry Overview
The South America Electric Vehicle Battery Materials Market is semi-fragmented. Some of the key players in this market (in no particular order) are BASF SE, Mitsubishi Chemical Group Corporation, UBE Corporation, Albemarle Corporation, and Umicore SA, among others.
South America Electric Vehicle Battery Materials Market Leaders
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BASF SE
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Mitsubishi Chemical Group Corporation
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UBE Corporation
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Albemarle Corporation
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Umicore SA
- *Disclaimer: Major Players sorted in no particular order
South America Electric Vehicle Battery Materials Market News
- June 2024: Toshiba Corporation, Sojitz Corporation, and Brazil's CBMM, a leading niobium producer, jointly developed a cutting-edge lithium-ion battery featuring niobium titanium oxide (NTO) in the anode. They recently showcased a prototype E-bus powered by this innovative battery at an inaugural event. The battery boasts an impressive 10-minute ultra-fast charging time and exceptional energy density. The E-bus is currently undergoing testing and demonstration runs at CBMM's facility in Araxá, Brazil.
- August 2023: Y-TEC, a subsidiary of YPF, Argentina's state-owned company, is set to inaugurate its first lithium battery cell and material factory in La Plata, the capital of Buenos Aires province, this September. Additionally, a significantly larger plant is slated to commence operations in Santiago del Estero in 2024. The Berisso manufacturing plant in La Plata will be operational by September as well.
South America Electric Vehicle Battery Materials Industry Segmentation
Electric vehicle battery materials refer to the raw materials and components used in the manufacturing of batteries for electric vehicles (EVs). The cathode, anode, electrolyte, and separator are key components of these batteries, each requiring specific materials to function effectively. The availability, cost, and sustainability of these materials are crucial factors influencing the production and advancement of electric vehicles batteries.
The South America Electric Vehicle Battery Materials Market is segmented by battery type, material, and Geography. By battery type, the market is divided into Lithium-ion Batteries, Lead-Acid Batteries, , and Others. By material, it is divided into Cathode, Anode, Electrolyte, Separator, and Others. By Geography, the market is segmented into the Brazil, Canada, Colombia, and Rest of South America. The report also covers the size and forecasts for the Electric Vehicle Battery Materials Markets across major regions. The market sizing and forecasts have been done for each segment based on revenue (USD).
| Battery Type | Lithium-ion Battery |
| Lead-Acid Battery | |
| Others | |
| Material | Cathode |
| Anode | |
| Electrolyte | |
| Separator | |
| Others | |
| Geography | Brazil |
| Argentina | |
| Colombia | |
| Rest of South America |
| Lithium-ion Battery |
| Lead-Acid Battery |
| Others |
| Cathode |
| Anode |
| Electrolyte |
| Separator |
| Others |
| Brazil |
| Argentina |
| Colombia |
| Rest of South America |
South America Electric Vehicle Battery Materials Market Research FAQs
How big is the South America Electric Vehicle Battery Materials Market?
The South America Electric Vehicle Battery Materials Market size is expected to reach USD 0.13 billion in 2025 and grow at a CAGR of 9.66% to reach USD 0.21 billion by 2030.
What is the current South America Electric Vehicle Battery Materials Market size?
In 2025, the South America Electric Vehicle Battery Materials Market size is expected to reach USD 0.13 billion.
Who are the key players in South America Electric Vehicle Battery Materials Market?
BASF SE, Mitsubishi Chemical Group Corporation, UBE Corporation, Albemarle Corporation and Umicore SA are the major companies operating in the South America Electric Vehicle Battery Materials Market.
What years does this South America Electric Vehicle Battery Materials Market cover, and what was the market size in 2024?
In 2024, the South America Electric Vehicle Battery Materials Market size was estimated at USD 0.12 billion. The report covers the South America Electric Vehicle Battery Materials Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Electric Vehicle Battery Materials Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
South America Electric Vehicle Battery Materials Industry Report
Statistics for the 2025 South America Electric Vehicle Battery Materials market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Electric Vehicle Battery Materials analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
