Lithium Cobalt Oxide Market Research Report By Application (Portable Electronics, Electric Vehicles, Power Tools, Energy Storage Systems), By Purity (99.5%, 99.8%, 99.9%, 99.95%, 99.99%), By Particle Size (20 nm, 20-50 nm, 50-100 nm, 100-200 nm, >200 nm), By Crystal Structure (Layered, Spinel, Olive) and  By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)  - Forecast to 2032.

Global Lithium Cobalt Oxide Market Overview

The Lithium Cobalt Oxide Market Size was estimated at 5.85 (USD Billion) in 2022. The Lithium Cobalt Oxide Industry is expected to grow from 6.22(USD Billion) in 2023 to 10.85 (USD Billion) by 2032. The Lithium Cobalt Oxide Market CAGR (growth rate) is expected to be around 6.37% during the forecast period (2024 - 2032).

Key Lithium Cobalt Oxide Market Trends Highlighted

Major factors driving the lithium cobalt oxide market include the surging demand for lithium-ion batteries in electric vehicles and consumer electronics. Government incentives, rising environmental concerns, and technological advancements in battery technologies further accelerate market growth.The rising demand for high-performance batteries creates opportunities for the exploration of novel lithium cobalt oxide compositions and electrode architectures. Additionally, the integration of AI and machine learning in battery design and manufacturing can optimize efficiency and reduce production costs.

Recent trends in the lithium cobalt oxide market include the shift towards cobalt-free or low-cobalt cathode materials due to concerns over supply chain disruptions and ethical sourcing. The emergence of ultra-fast charging technologies and solid-state batteries also presents significant opportunities for market growth. Furthermore, increasing investments in research and development activities are expected to drive innovation and enhance product performance.

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

Lithium Cobalt Oxide Market Drivers

Rising Demand for Electric Vehicles

Significant changes are taking place within the automotive industry caused by the growth of electric vehicles. Lithium cobalt oxide is an integral part of the batteries that work in electric vehicles and contributes to high energy density and stability. The interest in electric vehicles contributes to an increase in demand for LCO as producers aim to reach growing production targets. In addition, governmental incentives and regulations implemented to support the use of electric vehicles contribute to the growth of LCO markets.It is likely to assume that the  Lithium Cobalt Oxide  Market Industry will increase at a steady pace over the forecast period with a substantially high growth rate caused by the rising demand for electric vehicles.

Expansion of Consumer Electronics Industry

Another major driver of the LCO market is the consumer electronics industry. LCO is used in the manufacture of batteries that can be used in a variety of electronic devices, including smartphones, laptops, and tablets. It is expected that the growing inclination for wireless and portable products will contribute to the expansion of the market. The fact that LCO remains a vital element used in the production of batteries of the devices from the expanding consumer electronics industry signifies that the  Lithium Cobalt Oxide Market Industry will benefit.

Technological Advancements and Research Activities

LCO on the Way to Improvement The introduction of innovations in LCO technology is contributing to better performance and efficiency of LCO products. Such a tendency is expected to be a driving force of development, which is likely to be noticed in the near future. The growing popularity of LCO is connected with the fact that it can be used in different applications, such as ESS and portable electronics. Moreover, the emergence of new applications that are connected with the use of LCO is likely to create new growth prospects for  Lithium Cobalt Oxide Market Industry.

Lithium Cobalt Oxide Market Segment Insights

Lithium Cobalt Oxide Market Application Insights  

The  Lithium Cobalt Oxide Market is segmented by the application into portable electronics, electric vehicles, power tools, and energy storage systems. Portable electronics is the leading application segment in 2023, with a share of more than 40% of the  market. This is due to the increasing demand for portable equipment such as smartphones, laptops, and tablets. Electric vehicles are forecasted to have the fastest growth rate during the analyzed period. It is explained by the rising number of electric vehicles all over the world and the continued government support of this industry.The growth rate of power tools and energy storage systems is also expected to be significant, resulting from the growing popularity of cordless power tools, and the increasing necessity to store the electricity, generated by the renewables. The major customer of LCO in the mentioned applications is the Asia Pacific region. Portable electronics Portable electronics is the major customer of lithium cobalt oxide. As of 2020, it already consumes more than 30 thousand tons per year, which is 29.3% of the  production. During the upcoming period, the demand for portable electronics will continue to increase, supported by the replenishment boom and the growing number of 5G users.Electric vehicles Electric vehicles are supplied by batteries, requiring lithium cobalt oxide. The advantages of electric vehicles are evident and include lower operating costs for end-users and the decrease of emissions. The demand for electric vehicles will continue to grow in the future, driven by government regulations and customer preferences. Power tools Power tools are frequently used for different activities such as construction, manufacturing, and home applications. The demand for power tools will continue to grow in the upcoming period along with the construction business recovery and the expansion of home handypeople.

The major type of energy storage systems storing electricity from renewables is Li-ion batteries. The demand for ESS will continue to grow in the upcoming period as the entire world strives to build a more sustainable energy system.

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

Lithium Cobalt Oxide Market Purity Insights  

The purity of Lithium Cobalt Oxide is a vital factor affecting the performance and the cost of the product. In general, higher purity LCO demonstrates higher electrochemical performance and better thermal stability, making it more expensive to produce. Currently, the market is segmented by the five most common purity grades: 99.5%, 99.8%, 99.9%, 99.95%, and 99.99%. Undoubtedly, the market price of each segment will vary, and the 99.5% grade is the most demanded in the market. It is explained by the balanced cost and performance characteristics that fit most of the application, such as the EV batteries or the personal electronics batteries.The segment of 99.8% is used for products requiring advanced performance level, such as high-power batteries, or the aerospace. Finally, the 99.9%, 99.95%, and 99.99% grades are used for the special application when the ultimate performance and reliability is needed, such as the medical or military applications. The expected growth of the market is based on the growing demand for LCO for the production of batteries for the EV and personal electronics. Another factor for the growth of the Lithium Cobalt Oxide Market is the increased adoption of the alternative sources of energy, such as pressure and solar panels.The increasing proportion of solar panels and wind turbine in total energy production is expected to be another factor triggering the growth for the market.

Lithium Cobalt Oxide Market Particle Size Insights  

The Particle Size segment of the  Lithium Cobalt Oxide Market is expected to witness significant growth over the forecast period, owing to the increasing demand for lithium cobalt oxide in various applications such as batteries, electronics, and catalysts. The '20 nm' segment is projected to hold a significant market share, driven by the growing demand for high-performance batteries in electric vehicles and portable electronic devices. The '20-50 nm' and '50-100 nm' segments are also expected to exhibit promising growth, as they offer a balance between performance and cost.The '100-200 nm' and '>200 nm' segments are expected to contribute to the market growth, primarily due to their use in industrial applications such as catalysts and pigments.

Lithium Cobalt Oxide Market Crystal Structure Insights  

The  Lithium Cobalt Oxide Market is segmented by Crystal Structure into Layered, Spinel, and Olive. Layered Lithium Cobalt Oxide is the most common type, accounting for over 50% of the market share in 2023. Spinel Lithium Cobalt Oxide is expected to grow at the highest CAGR of 7.5% during the forecast period, owing to its high energy density and thermal stability. Olive Lithium Cobalt Oxide is a new type of Lithium Cobalt Oxide that is gaining popularity due to its low cost and high capacity.

Lithium Cobalt Oxide Market Regional Insights  

North America held the largest market share in 2023, with a significant contribution to the overall  Lithium Cobalt Oxide Market revenue. The region's advanced automotive industry and growing demand for electric vehicles drive its dominance. Europe follows North America, driven by stringent environmental regulations and government initiatives promoting electric mobility. APAC is projected to witness substantial growth over the forecast period, primarily due to the rising adoption of electric vehicles and consumer electronics in countries like China and India.South America and MEA, though smaller markets, present opportunities for growth as these regions explore the potential of lithium-ion batteries in various applications.

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

Lithium Cobalt Oxide Market Key Players and Competitive Insights

Lithium cobalt oxide market players are continuously focusing on R investments for the upgradation of their product lines and for the acquisition or expansion of the businesses to keep the pace of increasing demand for lithium cobalt oxide. Moreover, major fragment players are emphasizing and expanding in enhancing international outreach and fostering distribution networks in response to the high demand for lithium cobalt oxide. The market players of the lithium cobalt oxide market are also expanding because of their product offerings and often firm acquisition agreements or contracts with other companies if needed. The development of the lithium cobalt oxide market is influenced by two major factors that are described as the increasing use of lithium-ion batteries and the substantial demand for lithium cobalt oxide on the  front. Apart from this, the shift in the  concerns of consumers toward maintaining a superior level of environmental sustainability is also one of the major factors that are powering the growth of the lithium cobalt oxide market ly.It has been noted that in the recent past, the increasing interest in the use of sub-electric storage devices on the consumption end is also driving the demand for lithium cobalt oxide throughout the  market. Apart from this, due to the growing concerns pertaining to the energy crisis, the government support and subsidies provided to promote the use of electric vehicles as replacements to the oil-based transportation systems as well as due to the oil price volatilities, these systems are gaining favor across the globe. Ore-kotek, Umicore, Tanaka, Toda Kogyo, BASF, FMC Corp. includes the major competitors of the lithium cobalt oxide market. BASF is a German company and also one of the major competitors of the lithium cobalt oxide market players. BASF is known for supporting a superior level of international distribution networks and for supporting a superior quality and range of offerings in the lithium cobalt oxide market. It also partners with other companies and aims at expanding and contracting based on its requirement with a competent laboratory research team for its R vestments. BASF also supports a superior level of production facilities and capabilities with leading customer support and solution services.

Key Companies in the Lithium Cobalt Oxide Market Include

• Kemet


• Ganfeng Lithium


• Shanshan Technology


• Umicore


• Chemetall


• Hanwa Chemical


• Livent


• Eramet


• Shenzhen Brunp Recycling Technology


• Jiangsu Guotai Huarong


• Dowa Metals Mining


• Mitsui Mining Smelting


• Materion


• Nemi


• Sumitomo Metal Mining

Lithium Cobalt Oxide Market Industry Developments

Increasing demand for electric vehicles: LCO is a key component in lithium-ion batteries used in electric vehicles, and the rising popularity of these vehicles is driving demand for LCO.Government incentives: Governments worldwide are offering incentives to promote the adoption of electric vehicles, which is further boosting demand for LCO.Supply chain disruptions: The COVID-19 pandemic and geopolitical tensions have disrupted the supply chain for LCO, leading to price increases and shortages.Technological advancements: Research and development efforts are focused on improving the performance and reducing the cost of LCO batteries.Growing investments: Major companies and investors are pouring money into the LCO market, recognizing its potential for growth.

Lithium Cobalt Oxide Market Segmentation Insights

Lithium Cobalt Oxide Market Application Outlook

• Portable Electronics


• Electric Vehicles


• Power Tools


• Energy Storage Systems

Lithium Cobalt Oxide Market Purity Outlook

• 5%


• 8%


• 9%


• 95%


• 99%

Lithium Cobalt Oxide Market Particle Size Outlook

• 20 nm


• 20-50 nm


• 50-100 nm


• 100-200 nm


• >200 nm

Lithium Cobalt Oxide Market Crystal Structure Outlook

• Layered


• Spinel


• Olive

Lithium Cobalt Oxide Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa