Global Market Insights Inc., forecasts that global battery packaging material market size will be worth more than US$11.3 billion by 2026.

Majority of the battery demand today is driven by consumer electronics and automotive starter batteries. However, advanced, high-power applications such as electric vehicles (EV) and renewable energy storage systems are anticipated to make a considerable impact in the near future. Battery packaging materials help the battery adapt to specific needs of an applications based on temperature, form factor, sealing and charge monitoring.

Wood, foam, cardboard, and different types of plastics are typically used as battery packaging materials. Flourishing consumer electronics and automotive sectors are likely to propel the demand for these materials. Manufacturers are aiming to design reliable, efficient, and cost-effective packaging materials while ensuring compliance with regulatory standards.

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Proliferation of lithium-ion batteries

Since their introduction, li-ion batteries have gradually dominated the energy storage systems industry. The technology finds applications in electronic gadgets like smartphones, tablets, and laptops along with smart wearables and a range of kitchen and home appliances. Li-ion batteries are being regarded as an imminent option for the rapidly growing electric vehicles space. Advantages such as high energy density, low self-discharge rate and long service life makes them a suitable option in electric and hybrid vehicles.

With mounting environmental concerns and tightening government regulations, more and more people are switching to EVs and HEVs. According to the International Energy Agency’s (IEA) Global EV Outlook 2019, the global EV fleet had surpassed 5 million in 2018, with China accounting for almost 50% of global EV sales, followed by the U.S. and Europe.

EV makers are currently focusing on minimizing battery and component costs, indicating a significant upsurge in the adoption of electric cars in the upcoming years. APAC battery packaging materials market is slated to witness notable growth in the future on account of a automotive and consumer electronics demand.

The regulatory landscape for batteries

Li-ion batteries are technically classified as hazardous goods as they can be extremely dangerous. These batteries are prominently used in e-bikes, smartphones, and even in electric vehicles. However, increased use means increased risk. While the shipping of brand-new batteries is safe, returning used or damaged batteries for recycling, repair or disposal can be dangerous.

For shipping li-ion batteries, certain manufacturers and suppliers need to comply with certain safety regulations. The legal requirements of li-ion battery packaging have been set out by the United Nations under the code UN3480 code. These regulations specify which materials can be used and what type of packaging is suitable for li-ion batteries. The presence of a strong regulatory framework to ensure safety during shipping and transportation will certainly influence the growth of battery packaging material manufacturers.

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Many devices today come with in-built batteries which do not require packaging. This may hamper the industry growth up to a certain extent. However, as the trend of electric mobility gains momentum, these materials are poised to witness a significant demand from various applications areas. Moreover, growing renewables deployment will likely lead to a strong demand for battery packaging materials market to support energy storage.

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