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 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).
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.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
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.
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.
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
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 17.63 Billion |
| Market Size 2024 | USD 18.74 Billion |
| Market Size 2032 | USD 30.55 Billion |
| Compound Annual Growth Rate (CAGR) | Â 6.30% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Battery Type, Material, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BASF SE (Germany), Kemira (Finland), Ashland (US), Clariant (Switzerland), Ecolab (US), Arakawa Chemical Industries, Ltd (Japan), Harima Chemicals Group, Inc. (Japan), Applied Chemicals International Group (Switzerland), Solenis (US), and SEIKO PMC CORPORATION (Japan) |
| Key Market Opportunities | The development of superior lithium-ion batteries with higher capacity and better heat management is expected to provide lucrative opportunities |
| Key Market Dynamics | The growing use of electric vehicles and portable electronic devices is likely to drive the cathode materials market The rise in demand for biodegradable, bio-based, and lightweight packaging materials among the various end-use industries such as consumer goods, pharmaceutical, and others |
Cathode Materials Market Highlights:
Frequently Asked Questions (FAQ) :
The global cathode materials market size was valued at USD 17.63 Billion in 2023.
The global market is projected to grow at a CAGR of 6.30% during the forecast period, 2024-2032.
Asia Pacific had the largest share in the global cathode materials market.
The key players in the market are 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).
The lead-acid category dominated the market in 2022.
The Lead Dioxide category dominated the market in 2022.
Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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