The South America consumer battery market is expected to grow at a CAGR of approximately 5.81% during the forecast period of 2020 – 2025. The major factors driving the market studied are improving economic conditions in the region and the declining lithium-ion battery prices. However, the huge tax imposed on telecommunication in South America countries, and no major investment in the telecommunication sector in the region is likely to restrain the market, since telecommunication is the largest end-user consumer for the market.
- Lithium battery dominated the market in 2018 and is expected to be the dominant segment during the forecast period.
- It has been estimated that South America’s Lithium Triangle hosts about 54% of the world’s lithium resources. As of 2019, Bolivia, Argentina , and Chile have around 21, 17, and 9 million tonnes of lithium reserve respectively. Thus, the huge Lithium reserves present in these countries is likely to act as an opportunity to increase the domestic production in the near future.
- Country like Chile are expected to be the future hoptspot for the lihtium-ion reserves. Thus, the country is expected to provide the significant during the forecast period.
Key Market Trends
Increasing Demand for Lithium-ion Batteries
- Advancements in technology and mass production or economies of scale have led to the significant fall in lithium-ion battery prices. Furthermore, it is forecasted that the lithium-ion batteries prices would keep decreasing, during the forecast period.
- The sale of consumer electronics, which use lithium-ion battery, has been increasing hand-in-hand with the region's economic growth, positively impacting the consumer battery market.
- Due to its high electrode potential, high charge, and power-to-weight ratio, lithium is among the critical components for battery electrolytes and electrodes.
- Additionally, lithium-ion batteries are rechargeable and have a high energy density. The demand for this type of batteries has been driven primarily by proliferation of personal technology products, including smartphones, tablets, and laptops.
- Moreover, countries in South America are emerging as developed countires, owing to economic growth and social development during the past ten years. The GDP growth rate in the region is expected to increase at a moderate pace during the forecast period, and when supported by the expected increase in demand of electronic devices due to increasing population, the consumer battery demand is also expected to go up.
Chile to Provide Significant Market
- Lithium is one of the most abundant resources in South America. South America accounts for roughly 55 – 60 % of the global lithium resources. As of 2018, identified lithium resources in Chile was 8.4 million metric ton.
- On account of this, Chile government is taking efforts to promote and invite countries across the globe to mine these vast resources, to serve the increasing demand for lithium-ion based batteries.
- In 2019, Chile imported 14 times the exported value of primary lithium ion batteries. Hence, overall, the country faces a trade deficit, and the trade balance can be achieved by increasing the domestic production of lithium-ion batteries.
- With huge lithium resources, Chile is becoming a new hotspot for lithium-ion battery manufacturing, as making batteries here may prove more profitable than manufacturing it anywhere else in the world.
- Hence, with a rapid rise in demand for consumer batteries in the country and also across the globe, domestic and foreign companies have a tremendous opportunity for lithium-ion based battery manufacturing in Chile.
The South America Consumer Battery Market is fragmented. Some of the major companies include Duracell Inc., BYD Co Ltd, Samsung SDI Co. Ltd, LG Chem Ltd, and Panasonic Corporation
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