Cathode Materials Market

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).

The Global Global Cathode Materials Market Industry is poised for substantial growth, with projections indicating a market size of 18.7 USD Billion in 2024 and a potential increase to 36.7 USD Billion by 2035. This growth trajectory suggests a robust demand for cathode materials driven by various factors, including the rise of electric vehicles, advancements in battery technology, and increasing investments in renewable energy. The anticipated CAGR of 6.3% from 2025 to 2035 reflects the industry's resilience and adaptability in meeting the evolving needs of the global market.

The expansion of the renewable energy sector is another crucial driver for the Global Global Cathode Materials Market Industry. As countries strive to transition towards cleaner energy sources, the demand for energy storage solutions, particularly lithium-ion batteries, is expected to rise. These batteries are essential for storing energy generated from renewable sources like solar and wind. The increasing need for grid stability and energy management systems further propels the market for cathode materials. By 2035, the market is projected to reach 36.7 USD Billion, underscoring the pivotal role that cathode materials play in supporting the global shift towards sustainable energy solutions.

The increasing adoption of electric vehicles (EVs) is a primary driver for the Global Global Cathode Materials Market Industry. As governments worldwide implement stricter emissions regulations and promote sustainable transportation, the demand for high-performance cathode materials, such as lithium nickel manganese cobalt oxide, is expected to surge. In 2024, the market is projected to reach 18.7 USD Billion, reflecting the growing need for efficient energy storage solutions. The shift towards EVs not only enhances the market for cathode materials but also encourages innovations in battery technology, thereby fostering a competitive landscape that could lead to further advancements in material efficiency and performance.

Government initiatives aimed at promoting clean energy technologies are significantly impacting the Global Global Cathode Materials Market Industry. Various countries are implementing policies that support the development and adoption of advanced battery technologies. Incentives such as tax credits, grants, and subsidies for electric vehicle purchases and renewable energy projects are driving demand for cathode materials. These initiatives not only encourage manufacturers to innovate but also stimulate consumer interest in sustainable products. As a result, the market is likely to experience substantial growth, aligning with global sustainability goals and contributing to the overall expansion of the cathode materials sector.

Innovations in battery chemistry are significantly influencing the Global Global Cathode Materials Market Industry. Research and development efforts are focused on enhancing the energy density, lifespan, and safety of batteries. For instance, the introduction of solid-state batteries, which utilize advanced cathode materials, could revolutionize energy storage systems. This technological evolution is likely to attract investments and partnerships among manufacturers, leading to a more robust supply chain. As the market evolves, it is anticipated that these advancements will contribute to a compound annual growth rate (CAGR) of 6.3% from 2025 to 2035, indicating a promising future for cathode materials.

Investment in research and development (R&D) is a vital driver for the Global Global Cathode Materials Market Industry. Companies are increasingly allocating resources to explore new materials and improve existing ones to enhance battery performance. This focus on R&D is crucial for addressing challenges such as energy density, cost reduction, and environmental impact. Collaborations between academic institutions and industry players are fostering innovation, leading to the discovery of novel cathode materials that could transform the market landscape. As these advancements materialize, they are expected to play a significant role in shaping the future of the cathode materials industry.

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, Market Research Future 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