Lithium Ion Battery Cathode Material Market Analysis

Global Lithium-Ion Battery Cathode Material Market Overview

Lithium-Ion Battery Cathode Material Market Size was valued at USD 12,216.88 million in 2022. The Lithium-Ion Battery Cathode Material industry is projected to grow from USD 13,141.70 million in 2023 to USD 22,499.40 million by 2030, exhibiting a compound annual growth rate (CAGR) of 7.98% during the forecast period (2023 - 2030). The Lithium-Ion Battery Cathode Material market has witnessed substantial growth and advancement in recent years. Lithium-ion batteries have gained widespread usage in various sectors, including consumer electronics, electric vehicles, and renewable energy storage. The cathode material holds immense importance as it significantly influences these batteries' performance and energy storage capacity. The lithium-ion battery cathode materials market has primarily been driven by the increasing demand for portable electronic devices and the swift adoption of electric vehicles. The reliance on smartphones, tablets, and laptops has surged, resulting in higher production of lithium-ion batteries. Moreover, the mounting concerns regarding environmental sustainability and the imperative to reduce greenhouse gas emissions have fueled the demand for electric vehicles and renewable energy storage systems, propelling the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Lithium-Ion Battery Cathode Material Market Trends

• 
  

  Increasing demand for electric vehicles will fuel the growth of the Lithium-Ion Battery Cathode Material Market.

  
  

The rapid growth and advancements in the automotive industry are spurring the global demand for electric vehicles (EVs). This is largely driven by favorable government regulations, including subsidies, tax rebates, and new car registration policies to promote cleaner and greener transportation options. The increasing awareness and focus on reducing carbon emissions, coupled with the introduction of fast and advanced charging infrastructure, are further boosting the sales of EVs. This, in turn, creates the demand for lithium-based batteries in electric vehicles. These batteries typically contain manganese, cobalt, graphite, nickel, and other components. The prices of lithium-ion batteries have significantly decreased due to economies of scale and the implementation of more cost-effective manufacturing methods. Additionally, the commercial electric sector is also witnessing growth, particularly in countries like India and China, where the adoption of electric buses is on the rise.

As governments worldwide emphasize the transition to cleaner transportation, EVs have gained significant popularity among consumers. This surge in demand for EVs has a direct impact on the need for high-performance lithium-ion batteries, creating a strong market for cathode materials.

To meet the energy requirements of EVs, manufacturers are focusing on developing advanced cathode materials that offer improved energy density and longer battery life. Nickel-rich cathodes, in particular, have gained traction due to their higher energy storage capabilities. This development has spurred research and development activities to further enhance cathode performance and explore innovative materials. In addition to EVs, the growing adoption of renewable energy storage systems, such as residential and grid-scale batteries, also contributes to the increasing demand for lithium-ion battery cathode materials. These systems rely on high-performance batteries to store energy generated from renewable sources and ensure a stable power supply.

Furthermore, efforts are underway to optimize production processes and reduce the cost of cathode materials, making them more economically viable and accessible. Sustainable alternatives and recycling initiatives are also gaining prominence, reflecting the industry's commitment to environmental responsibility.

In June 2024, Ascend Elements achieved a significant accomplishment in the U.S. battery materials sector by successfully delivering decarbonized cathode materials to Freudenberg e-Power Systems. Freudenberg e-Power Systems is a global leader in providing emissions-neutral energy solutions for heavy-duty applications.  Ascend Elements utilizes a patented technique called Hydro-to-Cathode® direct precursor synthesis to produce NMC pCAM and CAM materials from recycled lithium-ion batteries and trash generated during battery manufacturing. The closed-loop technique eliminates a maximum of 15 intermediate steps in the conventional cathode manufacturing process and offers substantial economic and carbon reduction advantages. An independent third-party conducted a recent life cycle assessment which revealed that Ascend Elements' Hydro-to-Cathode® process generates EV battery cathode material with a 49% decrease in carbon emissions compared to conventional cathode manufacturing methods. The company's goal is to achieve a 90% decrease in carbon footprint for their decarbonized cathode products by 2030.

Lithium-Ion Battery Cathode Material Market Segment Insights

Lithium-Ion Battery Cathode Material by Type Insights

The Lithium-Ion Battery Cathode Material Market segmentation, based on Type has been segmented as Cobalt, Manganese, Phosphate, Nickel Cobalt Manganese, Lithium Iron Phosphate and Others. Among these, the Cobalt type is projected to dominate the Lithium-Ion Battery Cathode Material Market revenue through the projected period. Cobalt is used in the cathode material for NMC, NCA and LCO chemistries. Cobalt is mined independently or as a by-product of nickel and copper production. The demand for cobalt in lithium-ion battery cathode materials has been increasing in recent years, primarily driven by the growing electric vehicle (EV) market. Electric vehicles rely on lithium-ion batteries for their power storage, and as the demand for EVs continues to rise, so does the demand for cobalt.

Lithium-Ion Battery Cathode Material by End-Use Insights

Based on End-use, the Lithium-Ion Battery Cathode Material Market is segmented as Electrical & Electronics, Automotive, Energy, Medical and Others. Out of which the Automotive segment dominated base year market and is also projected to dominate the Lithium-Ion Battery Cathode Material Market revenue through the projected period. The dominance of the automotive sector is primarily attributed to the significant utilization of cathode materials in vehicle batteries. The increasing demand for fuel and the declining prices of Li-ion batteries have incentivized automobile manufacturers to invest more in electric vehicles. According to the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle production witnessed a growth of 3% in 2021, reaching 80.2 million units compared to the previous year's production of 77.6 million units. The trend continued in 2022, with automotive production increasing by 6% and reaching 85.01 million units. The rising production of vehicles, driven by the growing consumer demand, is a key factor propelling the market growth.

Lithium-Ion Battery Cathode Material by Application Insights

Based on Application, the Lithium-Ion Battery Cathode Material Market is segmented as Power Tools, Medical Equipment, Consumer Electronics and Others. Out of which the Consumer Electronics segment dominated the base year market and is also projected to be holding a dominating share in the forecasted period as well. Consumer electronics, including smartphones, tablets, laptops, and wearable devices, have witnessed a surge in demand globally. Lithium-ion battery cathode materials have become the preferred choice for these devices due to their high energy density, compact size, and lightweight properties. The use of these materials in consumer electronics has resulted in longer battery life, faster charging times, and improved overall performance.

Lithium-Ion Battery Cathode Material Regional Insights

Based on Region, the Lithium-Ion Battery Cathode Material market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia-Pacific Lithium-Ion Battery Cathode Material market held the maximum market share and is also expected to account for the significant revenue share during the forecast period. Regional growth in the Lithium-Ion Battery Cathode Material materials market is anticipated to be fostered by rapid urbanization and the increasing consumer spending on electric vehicles. In India, many domestic companies are strategically collaborating with overseas companies and establishing new production plants to manufacture EV batteries using indigenous battery materials. This development is expected to drive the growth of the Lithium-Ion Battery Cathode Material Market in the region.

The growth in APAC is primarily driven by the increased usage of electric vehicles (EVs) and the demand for batteries in various industrial sectors such as telecommunications, railways, electricity, and other industrial applications. The automotive sector, in particular, contributes significantly to the demand for battery materials in the APAC region. Furthermore, the growing adoption of lithium-ion batteries in energy storage systems and government regulations to boost vehicle fuel efficiency and rapid industrialization is expected to drive the global demand for lithium-ion battery cathodes. Customizing lithium-ion batteries based on the cobalt content within the cathode allows for cost optimization in battery manufacturing. This customization helps reduce the overall manufacturing costs of lithium-ion batteries. As a result, there is a shift towards using cost-effective batteries across various industries, including oil, coal, and renewable energy. This shift is expected to further fuel the global demand for lithium-ion battery cathodes.

Lithium-Ion Battery Cathode Material Key Market Players & Competitive Insights

Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the Lithium-Ion Battery Cathode Material Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire a larger customer base. To survive in the competitive market, industry players must provide cost effective products.

The Lithium-Ion Battery Cathode Material market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the Lithium-Ion Battery Cathode Material Market are BYD Co Ltd, LG Chem Ltd, Samsung SDI Co Ltd, BASF SE, Hunan Yuneng New Energy Battery Material Co Ltd, NEI Corporation, Targray Technology International Inc, Nichias Corp, JFE Mineral & Alloy Company, LTD, and Fujitsu Limited. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

BYD Co Ltd: BYD Co Ltd (BYD) designs, manufactures and sells rechargeable batteries, photovoltaic products, handset components and other electronic products. The company also offers whole product assembly services. It manufactures and offers traditional fuel-engine vehicles and new energy vehicles. The range of products developed by the company includes rechargeable batteries, photovoltaics, handset components, smartphone, laptop, notebook computers, game hardware and other consumer-related products. Automobile products include high-end, medium-end, and low-end cars, and whole car moulds, auto parts, DM (dual mode) and pure electric vehicles. It offers its products and services to handset manufacturers, electric power tools and other portable electronic equipment manufacturers. The company operates across the US, Europe, Japan, India, Hong Kong and other regions. BYD is headquartered in Shenzhen, China.

LG Chem Ltd: LG Chem Ltd is a Korea-based company principally engaged in the manufacture of petrochemical materials. The Company operates its business through five segments. The Petrochemistry Business segment is mainly engaged in the manufacture of basic materials which are mainly used for petrochemical industry, and the products include polyvinyl chloride (PVC) resins, low-density polyethylene (LDPE), poly styrene (PS), and acrylonitrile butadiene styrene (ABS). The Battery Business segment mainly engages in the manufacture of rechargeable batteries for mobile phone, automobile and storage batteries. The Advanced Materials Business segment mainly manufactures optical materials for manufacturing polarizers, and electronic materials including liquid crystal display (LCD) materials and cathode materials. The Life Science Business segment engages in the bio pharmaceutical business. The Common and Other segment manufactures and sells crop protection agents, fertilizers and seeds. LG Chem is a leading global supplier of lithium-ion battery cathode materials. The company has a strong track record of innovation and has developed some of the most advanced cathode materials on the market. LG Chem is committed to providing its customers with the best possible battery performance and safety.

Key Companies in the Lithium-Ion Battery Cathode Material Market includes.

• BYD Co Ltd (China)


• LG Chem Ltd (South Korea)


• Samsung SDI Co Ltd (Korea)


• BASF SE (Germany)


• Hunan Yuneng New Energy Battery Material Co Ltd (China)


• NEI Corporation (US)


• Targray Technology International Inc (Canada)


• Nichias Corp (Japan)


• JFE Mineral & Alloy Company, LTD (Japan)


• Fujitsu Limited (Japan)

Lithium-Ion Battery Cathode Material Industry Developments

June 2023: LG Chem to Enforce Patent Rights in High-Nickel Cathode Battery Materials. LG Chem announced that it will enforce its patent rights in high-nickel cathode battery materials. The company has a portfolio of over 40 patents related to high-nickel cathode materials, which are essential for high-performance electric vehicles (EVs). LG Chem believes that its patents are essential for the advancement of the EV industry and is willing to offer its patent portfolio to battery materials providers worldwide through various types of intellectual property business models.

July 2022: South Korea based LG Chem is the parent company of the world’s second largest electric vehicle (EV) battery manufacturer, LG Energy Solution, which has a strategic partnership with GM in the US called Ultium Cells. CAM includes processed nickel, cobalt, manganese and aluminum (NCMA) which are estimated to account for around 40% of the value of GM’s EV batteries. LG Chem has agreed to supply the Ultium Cells joint venture’s Ohio, Tennessee and Michigan plants with enough CAM for five million EV battery packs from the second half of 2022 until 2030.

June 2022: BYD to supply lithium-ion battery cathode material to Tesla. BYD announced in June that it would supply lithium-ion battery cathode material to Tesla. The deal is worth $1 billion and will see BYD supply Tesla with cathode material for its Model 3 and Model Y electric vehicles.

In June 2024, Metso will introduce the Metso pCAM plant, a smart manufacturing solution that is certified as Planet Positive. This facility will produce precursor cathode active material, a crucial component in the construction of lithium-ion batteries. Metso's pCAM plant is built around a highly efficient pCAM reactor, PSI 1000 particle size analyzer, and pCAM process control. This integration of sophisticated technology and extensive expertise guarantees an energy-efficient and environmentally friendly manufacturing process. The increasing adoption of high-performance lithium-ion batteries, which have higher energy density, fast charging capabilities, and enhanced safety features, is fueling the need for high-quality and sustainable precursor materials. We are a dependable and capable partner in the development of lithium hydroxide and other battery minerals projects. We are the first supplier from the Western region to offer an optimized pCAM facility for the production of high-quality precursor cathode active material.

Lithium-Ion Battery Cathode Material Market Segmentation:

Lithium-Ion Battery Cathode Material Type Outlook

• Cobalt


• Manganese


• Phosphate


• Nickel Cobalt Manganese


• Lithium Iron Phosphate


• Others

Lithium-Ion Battery Cathode Material End-Use Outlook

• Electrical & Electronics


• Automotive


• Energy


• Medical


• Others

Lithium-Ion Battery Cathode Material Application Outlook

• Power Tools


• Medical Equipment


• Consumer Electronics


• Others

Lithium-Ion Battery Cathode Material Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Spain
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa