Molten Salt Battery Market Size, Share, Industry Analysis, Trends, Growth, 2032

Molten Salt Battery Industry Prospective:

The global molten salt battery market size was worth around USD 1.86 billion in 2023 and is predicted to grow to around USD 13.89 billion by 2032 with a compound annual growth rate (CAGR) of roughly 25.00% between 2024 and 2032.

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Molten Salt Battery Market: Overview

Molten salt batteries belong to a type of batteries that consist of molten salt acting as an electrolyte. This type of battery offers several advantages such as high power density and high energy density hence making them suitable for large-scale applications that deal with tremendous amounts of energy. The conventionally used non-rechargeable thermal batteries are typically stored in solid form at room temperature. In case of application, the batteries can be heated. On the other hand, liquid-metal batteries have found applications in industrial power backup technologies and systems. They are used for energy storage through grid systems and in especially electric vehicles (EVs). Moreover, molten salt batteries have found higher application as the need for balancing the power storing capacities of renewable sources has reached high levels. The demand for molten salt batteries has grown at an unprecedented rate as more investments get directed toward exploring the application of molten batteries in the military and defense sectors.

Key Insights:

• As per the analysis shared by our research analyst, the global molten salt battery market is estimated to grow annually at a CAGR of around 25.00% over the forecast period (2024-2032)
• In terms of revenue, the global molten salt battery market size was valued at around USD 1.86 billion in 2023 and is projected to reach USD 13.89 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising investments in the construction of new power grid solutions
• Based on battery type segmentation, liquid metal was predicted to show maximum market share in the year 2023
• Based on applications segmentation, power plants were the leading segment in 2023
• On the basis of region, North America was the leading revenue generator in 2023

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Molten Salt Battery Market: Growth Drivers

Rising investments in the construction of new power grid solutions will drive the market demand

The global molten salt battery market is expected to grow due to the increasing investments in the construction of new and improved power grid solutions. The global energy demands are rising rapidly. The extensive proliferation of industries and higher energy requirements in urban areas has led to tremendous pressure on energy providers to meet the growing power needs. In 2022, the global energy needs were over 24,000 terawatt-hours (TWh) as per market research. Such high energy demand can be met by investing in robust power generating, storing, and distributing infrastructure enabled by effective power grid solutions. Since molten salt batteries have high power and energy density, they are used extensively in storing excess power generated by energy grids to be used at a later time.

These batteries are highly effective in storing excess energy that remains unused during non-peak periods which can then be later used during peak time. Moreover, they are useful in maintaining grid stability since any changes in grid frequency can be responded to using molten salt batteries. In October 2023, the United States announced an investment of USD 3.5 billion to improve power grid infrastructure in the country. Emerging nations hold high growth potential. Countries such as India, China, and African nations are developing as they witness massive investments across industries thus driving the energy needs in these countries. Moreover, digitization and excessive reliance on modern electricity-powered tools have further impacted the consumption rate of molten salt batteries.

Growing funds directed toward channeling solar and wind energy will create more demand for molten salt batteries

Molten salt batteries have found applications in solar energy and wind energy generating systems for storing power and supplying it when required. The world is steadily moving toward clean energy and the investments in renewable energy sources have increased over the years. World leaders and governments are actively working toward reducing the overall domestic carbon footprint and clean energy is an effective solution in achieving this goal. As per official data, India is expected to witness a jump of over 83.05% in the solar energy sector by the end of 2024. Offshore construction of new renewable energy generating systems will be crucial in determining the market trajectory in the coming years. As of January 2024, Europe has received an additional investment of €30b for offshore wind projects thus creating growth scope for the global molten salt battery market.

Molten Salt Battery Market: Restraints

High cost of production and complexities in maintaining the technology will restrict the market expansion rate

The global industry for molten salt batteries is expected to be restricted due to the high cost of battery production. It requires the use of specialized materials which leads to an increase in overall production expense as compared to other types of batteries. Moreover, the lack of skilled professionals with expertise in molten salt battery production will further impede the market growth trends. Additionally, users may face issues with achieving compatibility between molten salt batteries and other materials which ultimately leads to the early onset of corrosion in other battery components.

Molten Salt Battery Market: Opportunities

Military applications of molten salt batteries have high growth potential

The global molten salt battery market is expected to generate high growth opportunities due to the increasing application of the batteries in military activities. Molten salt batteries are widely used in nuclear power reactors and are a major component of several types of guided missiles. In the last 5 years, investments in enhancing regional national security have surged especially in countries that are subject to frequent social, political, or economic turmoil. The recent Russia-Ukraine war drastically drove the demand for guided missiles used by both countries to protect their region and counter-attacking the opposite party. As per recent claims by Ukraine, Russia has used over 8000 missiles since the war began in 2022. The growing developments in missile technology as well as rising international collaboration for the development of new missiles and nuclear power reactors will be essential in molding the market revenue during the projection period.

Rising demand for novel battery solutions in special electric vehicles (EVs) can explode market revenue streams

The automotive industry has witnessed revolutionary changes with the introduction of EVs across the globe. While electric vehicles are steadily gaining a higher consumer base worldwide, the market leaders are actively investing in enhancing the offerings of EVs with the deployment of more affordable yet high-performance solutions. Additionally, the public transport ecosystem is undergoing electrification which will create a higher demand for high-capacity molten salt batteries. Europe registered over 1700 electric buses in 2022 while other regions are showing similar results thus creating more demand in the global molten salt battery market.

Molten Salt Battery Market: Challenges

High competition from sodium batteries and other alternatives will challenge the market expansion rate

The global molten salt battery industry will be challenged by the high competition the industry faces from sodium batteries which are gaining higher momentum as an alternative to more commonly used lithium batteries. As per official reports, China-based BYD is currently building a 30 GWh Sodium-Ion battery gigafactory. The current world, on the other hand, is led by lithium-ion batteries thus leaving limited space for molten salt batteries to grow.

Molten Salt Battery Market: Segmentation

The global molten salt battery market is segmented based on battery type, applications, and region.

Based on battery type, the global market segments are sodium-sulfur and liquid metal. In 2023, the demand was the highest in the liquid metal segment. The overall structure of the liquid metal variant allows it to perform more efficiently. The rising use of liquid metal molten salt batteries in power generation and storage tools is helping the segment flourish. Moreover, the electric vehicle sector is also exploring the use of molten salt batteries. The US EV market was valued at over USD 50 billion in 2023.

Based on applications, the global market segments are power plants and the military. In 2023, the power plants segment was leading with the highest growth rate. Molten salt batteries have excellent electricity storing capacities. Their growing use in the renewable energy sector is fueling the segmental demand. In military applications, molten salt batteries are an important component of popular guided missiles. In 2023, the global guided missile industry was valued at over USD 1 billion.

Molten Salt Battery Market Report Scope

Molten Salt Battery Market: Regional Analysis

North America to continue leading the market during the projection period

The global molten salt battery market will be led by North America during the forecast period. The increasing use of molten salt batteries across regional power grid stations along with rising investments in the deployment of clean energy is driving the regional market growth rate. In 2023, the United States witnessed record investments in solar and wind energy harnessing. In October 2023, the US approved the construction of a 2.6 GW Coastal Virginia Offshore Wind (CVOW) project undertaken by Dominion Energy. The regional market will be further impacted by the growing use of molten salt batteries in the manufacturing and development of electric vehicles. The US is home to some of the leading companies driving technological innovation in the EV segment.

Moreover, the presence of a massive military segment in North America further promotes the adoption of these superior-performance batteries. In 2023, the US amped up its production of missiles as a response to increasing national threat. Asia-Pacific is anticipated to become one of the fastest-growing regions. The main reason for higher regional demand is the existence of a robust battery manufacturing sector in Asian countries as well as the mass deployment of specific EVs. Electric vehicle makers in Asia are expanding to other international regions thus helping the demand for molten salt batteries prosper.

Molten Salt Battery Market: Competitive Analysis

The global molten salt battery market is led by players like:

• Sumitomo Electric Industries
• IMB Energy Storage
• 24M Technologies
• Transatomic Power
• Prudent Energy
• The Furukawa Battery Co. Ltd.
• Halotechnics
• Rongke Power
• Ambri
• Primus Power
• Fiamm SoNick
• Tesla Inc. (through their acquisition of SolarCity
• which developed molten salt batteries)
• FZSoNick
• Kokam
• ESS Inc.

The global molten salt battery market is segmented as follows:

By Battery Type

• Sodium-Sulphur
• Liquid Metal

By Applications

• Power Plants
• Military

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa