Market mavens Allied Market Research believe the global lithium-ion battery market is expected to reach $46.21 billion by 2022, growing at a CAGR of 10.8 percent during the forecasted period. In the next coming years, the main driver for the market are portable devices such as mobile phones, laptops and tablets. Portable devices still control more than half of the market capital, however with the rising emergence of electric vehicles, automotive manufactures are beginning to enter.
Countries such as U.S., China, and Japan are expected to drive the EV market. Lithium-ion batteries are ideal for portable devices and EVs due to its small compact size but being able to deliver its strong power, while being eco-friendlier than the standard batteries because they are rechargeable and have a longer shelf life.
The increasing demand for both lithium and cobalt is attributable to portable consumer electronic devices such as phones or laptops. But as EVs become more accessible and auto manufacturers shift to more environmentally friendly options, it is forecasted for EVs to be the largest contributor to both the lithium and cobalt markets. A report by Business Insider quoted a commodity-focused fund manager who explained, "Future demand for cobalt from the EV (electric vehicle) sector is looking tangible and is more positive than originally expected… China has some aggressive plans in terms of electric vehicles. It will be a major driver behind cobalt consumption growth."