Silicon Metal Market is set to trend with the rapid adoption of electric vehicles (EVs)

Silicon Metal Market is set to trend with the rapid adoption of electric vehicles (EVs)

Silicon metal, also known as metallurgical grade silicon, is an important raw material used in the production of aluminum alloys, semiconductors and solar panels. It is also a key component in lithium-ion batteries used extensively in electric vehicles (EVs). Silicon metal anodes help boost energy densities and improve charging capabilities of batteries. Silicon metal provides nearly 10 times the charge of conventional graphite anodes, helping reduce battery costs and extend EV ranges.

The Global Silicon Metal Market is estimated to be valued at US$ 7.67 Mn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2024 to 2031. Strong commitments by governments worldwide to transition to eco-friendly EVs are driving massive investments into lithium-ion battery manufacturing, propelling silicon metal demand.

Key Takeaways

Key players in the silicon metal market include Lumiere Cycling, Castelli Cycling, Giro Sport Design, Champion System, Conquest Cycle Wear Ltd., Assos Of Switzerland Sa, Cuore Of Switzerland Inc., Endura Limited, Tewsn Cycling Gear Limited, Isadore Apparel, Rapha Racing Limited, 2xu Pty Ltd., Maap, Attaquer Pty Ltd., Blacksheep, Pas Normal Studios, Santini Maglificio Sportivo S.R.L. P.I. - C.F., Capo, and Pedla.

The rapid adoption of EVs worldwide is fueling increased consumption of lithium-ion batteries. Silicon metal anodes are able to significantly boost battery capacities, creating high demand from battery manufacturers.

Major silicon metal producers are investing in capacity expansions and new production facilities across regions to leverage the massive anticipated demand from the EV and battery manufacturing sectors over the coming decade.

Market Key Trends

The use of Silicon Metal Market trends in lithium-ion battery anodes is one of shaping. Silicon metal allows for battery storage capacities nearly 10 times that of conventional graphite, substantially improving EV driving ranges. Battery manufacturers are aggressively researching silicon metal anode chemistries to develop more powerful and affordable next-generation batteries. This is expected to considerably boost demand for silicon metal over the forecast period.

Porter's Analysis

Threat of new entrants: New entrants face high capital requirements for economies of scale in production and need for commercialize the metal.

Bargaining power of buyers: Buyers have moderate to high bargaining power as they can switch between suppliers based on quality and lesser price.

Bargaining power of suppliers: Few players are dominant suppliers of key raw materials like silica and aluminum.

Threat of new substitutes: Limited threat of substitutes as silicon finds wide usage in aluminum and chemicals industries requiring good electrical conductivity.

Competitive rivalry: Intense competition among existing players to gain market share by offering competitive pricing and better product quality.

Geographical Regions

China accounted for over 50% of Silicon Metal Market Regional Analysis value in 2024, owing to presence of large customer base in the aluminum alloys and chemical industries. Growing electric vehicle penetration is also boosting demand for advanced lithium-ion batteries, requiring silicon as anode material.

Southeast Asia is expected to witness the fastest growth during the forecast period, expanding at a CAGR of over 8%, driven by rising aluminum production capacities across Indonesia, Vietnam and Malaysia. Governments are promoting domestic manufacturing to reduce heavy reliance on imports, benefiting silicon metal suppliers.

 North America is another prominent regional market, driven by presence of leading electric vehicle manufacturers and demand from the chemicals sector in the US and Canada. Major players are expanding production capacities to cater growing requirements of semiconductor grade silicon metal.

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About Author:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)