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It is noteworthy that the cathode materials market is undergoing structural changes that indicate its current performance is strongly impacted by the global energy transition. The like devices are also experiencing a similar imbalanced craze because cathode materials are a very important component in lithium-ion batteries. With the growth of the more awareness of the environment and the implementation of the governments' policies of cutting the emissions of carbon you get the rise in the desire in the use of EVs and this brings the cathode materials market to the frontline.
Environmental sustainability and green impact have been at the heart of the trends in the cathode materials market. Manufacturers are not only focused on cathode materials with improved energy density, longer lifespan and minimal environmental impact, but also on the reduction of the processing steps and the waste generated related to this. This alters a trend for industries to increase the environmental consciousness and for consumers to match their preferences to eco-friendly practices. There is huge effort to design cathode materials that will work better than the existing ones and with the bigger environmental impact in place.
Not only that, a revolution is happening in the area of cathode chemistries now as well. Although Lithium Cobalt Oxide (LCO) historically had been dominating the cathode materials, there is now much research on some different materials that are away cobalt: NCM, NCA, LFP and other many various combinations. Every of these chemistries requires its own special chemistry, which has different advantages and disadvantages that influence their full-scale implementation in different fields. The manufacturers are selectively building up their cathode material portfolios, with an aim of catering to the different specific needs of various users at the end of the day, which indirectly means they will be serving a more diversified market.
The second plausible trend is the change of the carbon supply chain and location of the production of cathode materials. Historically, Asia-Pacific has had a big share in Catches, with China controlling a large part of it. Nevertheless, there is a trend of decentralization that becomes apparent, and the North America and Europe are also among the regions that move to the raw material preparation. This change is propelled by the desire to become less dependent on a certain region and to minimize supply chain risks including those that might happen in the context of a crisis situation, especially of the geopolitical ones.
In addition to this, cathode material technologies develop with great pace and dictate the eventual market patterns. Thus, dynamic studies are aimed at bringing energy density, the charging speed of the cathode materials up, and their performance as a whole. Developments like silicon-geared anodes, solid state batteries, and coating techniques are also at heart of the research, which are rapidly emerging as the technologies that could lead to much higher performance of lithium-ion batteries.
Cathode Materials Market Highlights:
Global Cathode Materials Market Overview
Cathode materials Market size was valued at USD 17.63 Billion in 2023. The cathode material industry is projected to grow from USD 18.74 Billion in 2024 to USD 30.55 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.30% during the forecast period (2024 - 2032). The Cathode Materials are used along with the metal enamels in the manufacturing industry and they are used for manufacturing generators, motors, and transformers. The different components in the electrical industry include wire windings, laminated cores, and insulating materials that require Cathode Materials. The increasing number of manufacturing facilities and the growing demand for wire windings, iron cores, and other automotive components across the globe are presenting a lucrative opportunity for the overall growth of the Cathode Materials industry.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Cathode Materials Market Trends
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The growing use of electric vehicles and portable electronic devices is likely to boost the market growth
Cathode materials are key elements that determine the differences in composition while building positive electrodes for battery cells. In the crystal structure, the cathode materials consist of cobalt, nickel, and manganese. This crystal structure forms a lithium-added multi-metal oxide material. The main active element of the cathode was initially cobalt. Cobalt is frequently substituted partially with nickel (NCM, NCA). The most prominent cathode chemistries are Nickel Manganese Cobalt (NCM), Nickel Cobalt Aluminum (NCA), Lithium Cobalt Oxide (LCO), Lithium Manganese Oxide (LMO), and Lithium Iron Phosphate (LFP).
Additionally, Cathode materials are widely used in lithium-ion batteries for use in the automotive industry, energy storage systems, power tools, and consumer electronics. These batteries include products for various customers requiring high power density and/or high load ability. The shift observed in the automotive industry toward the use of clean and sustainable fuel is expected to uplift the market for cathode materials. The implementation by different nations of renewable energy battery storage technologies to overcome costs and carbon emissions from fuel energy will drive the cathode materials industry as a whole.
In February 2024, POSCO announced that it would build the world’s largest cluster of battery cathode factories in Gwangyang, which will produce nickel, cobalt and aluminum (NCA) batteries for cathode materials. The factory is expected to produce up to 52,500 tons of cathode material annually.
For instance, on January 27th, 2024, the government approved POSCO Chemical’s high nickel-containing cathode production plan. According to POSCO Chemicals, the Ministry of Trade Industry and Energy has granted approval for design technology development related to about 80% of cathode material items. This means that they can be used as more capacious storage components for lithium-ion batteries (LIBs).
Cathode Materials Market Segment Insights
Cathode Materials Battery Type Insights
The global Cathode Materials Market segmentation, based on Battery Type, includes Lead Acid, Lithium-Ion, and Others. the lead-acid segment is estimated to hold the largest in the cathode materials market due to an increase in investments by governments in the automotive industry. The increase in demand for electric vehicles (EVs), including battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs), and hybrid electric vehicles (HEVs) is rising over the past few years due to strict regulations on CO2 emissions as well as government support through policy changes and subsidies, which has uplifted the demand for cathode materials market. Additionally, the high demand for lithium-ion cathode technology in renewable energy industries has played a vital role in the upliftment of the market.
The global CATHODE MATERIALS market segmentation, based on Material, includes Lithium Iron Phosphate, Lead Dioxide, and Others. the lead dioxide segment is expected to hold the largest share of the cathode materials market due to the rapid increase in production of passenger cars, commercial vehicles, and two-wheelers, along with growing demand for industrial energy storage systems.
Figure 2: Global CATHODE MATERIALS Market, by Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Cathode Materials Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific accounted for the largest market share for global cathode materials in 2017, because of rising industrialization in emerging economies, such as India, China, and Thailand. China is expected to fuel the demand for cathode materials owing to government support, a strong manufacturing base, and growing investment by automotive giants in electric vehicle production. These factors have made the country one of the leading cathode material consumers.
Figure 3: GLOBAL CATHODE MATERIALS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North America is another prominent region for cathode materials owing to the technological advances in aerospace, automotive, and electronics industries for more compatible devices, such as UAVs, and electric-powered aircraft. Additionally, the increasing production of lightweight, electric, and hybrid vehicles in the automotive industry is likely to drive market growth during the review period.
The European cathode materials market is expected to grow on account of owing to demand from the automotive industry for highly energy-efficient and lightweight vehicles. The growing awareness about emission-free automobiles is expected to be a key driver for market growth in the region.
Cathode Materials Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Cathode Materials Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Cathode Materials Industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Cathode Materials. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Cathode Materials Industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Cathode Materials Industry to benefit customers and expand the market sector. The Cathode Materials Market has recently given medicine some of the most important advantages. Major Cathode Materials Market Players, including Umicore (Belgium), 3M (US), Mitsubishi Chemical Holdings (Japan), POSCO (South Korea), Johnson Matthey (UK), Hitachi Chemical Co., Ltd. (Japan), Kureha Corporation (Japan), Sumitomo Corporation (Japan), and others, are attempting to increase market demand by funding R&D initiatives.
Umicore is a materials technology and recycling company. It operates Catalysis, Recycling, and Energy and Surface Technologies business units. The Catalysis business unit offers automotive catalysts and precious metals chemistry products. The Recycling business unit is engaged in precious metals refining and management and provides jewelry and industrial metals. The Energy and Surface Technologies business unit offers.
Also, 3M (formerly Minnesota Mining and Manufacturing) is a technology company that provides product development, manufacturing, and marketing. It operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The Safety and Industrial segment specializes in personal safety, industrial adhesives and tapes, abrasives, closure and masking systems, and electrical markets.
In May 2023, China-based company Gotion High-tech brought to market the year L600 Astroinno battery cell pack, claiming that it is the world’s first non-NCM type with a driving range of up to one thousand kilometers
Key Companies in the Cathode Materials Market Include
- Umicore (Belgium)
- 3M (US)
- Mitsubishi Chemical Holdings (Japan)
- POSCO (South Korea)
- Johnson Matthey (UK)
- Hitachi Chemical Co., Ltd. (Japan)
- Kureha Corporation (Japan)
- Sumitomo Corporation (Japan)
- Todakogyo Corp (Japan)
- Mitsui Mining & Smelting (Japan)
- NEI Corporation (US)
- Targray Technology International Inc. (Canada)
Cathode Materials Industry Developments
SK Battery America (SKBA) has chosen Ascend Elements, a vertically integrated lithium-ion battery recycling company based in Massachusetts, to recycle both cell and module lithium-ion battery manufacturing scrap from the company's Commerce, Ga. manufacturing facility. The scrap will be recycled at Ascend Elements' new 154,000-square-foot battery recycling facility in Covington, Georgia, which can recover 98 percent of battery materials and return critical battery elements to the battery supply chain.
Johnson Matthey, a multinational sustainable technologies company headquartered in London held a groundbreaking event to commemorate the construction at its plant in Gliwice, Poland. Johnson Matthey will be able to provide small batches and spare parts of its important catalyst products, which aid the automotive industry in reducing harmful emissions from all types of vehicles, with this investment. The new line will allow Johnson Matthey's Clean Air global manufacturing footprint to be optimized while creating a cleaner world for future generations.
Cathode Materials Market Segmentation
Cathode Materials Battery Type Outlook
- Lead Acid
- Lithium-Ion
- Others
Cathode Materials Material Outlook
- Lithium Iron Phosphate
- Lead Dioxide
- Others
Cathode Materials Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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