Market Trends of South and Central America Battery Industry
This section covers the major market trends shaping the South & Central America Battery Market according to our research experts:
Lithium-ion Batteries to Dominate the Market
- In the early stages of the lithium-ion battery industry, the consumer electronics sector was the major consumer of batteries. However, in recent years, electric vehicle (EV) manufacturers have become the biggest consumers of lithium-ion batteries due to the growing sales of EVs.
- EVs do not emit CO2, NOX, or any other greenhouse gases and, hence, have a lower environmental impact compared to conventional internal combustion engine (ICE) vehicles. Due to this advantage, many countries are encouraging the use of EVs by introducing subsidies and government programs.
- In July 2022, the Brazilian government issued an executive order to relax the rules on lithium export. Currently, Brazil accounts for 1.5% of global production of lithium-ion, and two companies are operational in the region, i.e., CBL and AMG Brazil.
- In November 2022, Argentina announced its plans to begin operations at its first lithium battery plant after the necessary equipment arrived in the city of La Plata from China. The plant will be constructed by Universidad Nacional de La Plata (UNLP), YPF-Tecnología (Y-TEC), and the National Scientific and Technical Research Council (CONICET), with the support of the Ministry of Science, Technology, and Innovation.
- Owing to such factors, lithium-ion batteries are expected to dominate the South and Central American battery market during the forecast period.
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Brazil to Dominate the Market
- Brazil is one of the largest markets for consumer batteries, mainly due to the high demand for consumer goods. The demand for consumer electronics in Brazil is increasing, which may offer a significant boost for the market studied.
- In Brazil, the major supplier countries for primary batteries include China, the United States, and Germany. The import value of primary batteries in Brazil is way higher than the export, which signifies the high dependency on imports to meet the requirements of primary batteries. Distributor networks and channel partners of overseas manufacturing firms cater to the demand for primary batteries in Brazil.
- The battery demand in Brazil is boosted by the demand for electricity, which is anticipated to register a growth rate of about 2.7% during 2014-2024, leading to an increasing requirement of standby sources of electricity.
- The Rota 2030 program is aimed at improving energy efficiency in the transportation sector, which is a major boost for the Brazilian electric vehicle market. The surge in the deployment of electric vehicles is likely to provide a significant impetus to the Brazilian battery market during the forecast period.
- As of February 2022, AMG Mineração, a Brazilian subsidiary of Dutch Advanced Metallurgical Group (AMG), had an annual lithium production capacity of 130 thousand metric ton of concentrate in Brazil. Meanwhile, Sigma Mineração, part of Canada-based Sigma Lithium Resources, had planned a capacity of 220 thousand ton of concentrate in its complex at Grota do Cirilo.
- In April 2022, Brazilian mining company CBMM announced its plans to start using technology it developed with Toshiba to supply niobium battery cells for fast-charging electric motorcycles. Toshiba is planning to produce 4,000 battery cells to validate the technology with the end user.
- Therefore, due to such factors, Brazil is expected to have a positive impact on the battery market in South and Central America during the forecast period.
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