Global Cathode Materials Market - 2024-2031

Global Cathode Materials Market - 2024-2031

Global Cathode Materials Market

The global cathode materials market size was worth US$ 28.56 billion in 2023 and is estimated to reach US$ 76.99 billion by 2031, growing at a CAGR of 13.2 % during the forecast period (2024-2031).

Lithium and metal make up the active components in cathodes. Depending on the type of metal and its ratio, active materials have varying properties. Ni(Nickel) has a high capacity, Mn(Manganese) and Co(Cobalt) have a high level of safety and Al(Aluminum) enhances the battery's power. Mg: Ag (10:1), LiF and Mg: Al is some of the most commonly used cathodes. The cathode is commonly made of aluminum (Al), but alternative insulating layers like MgO, CsF, Al2O3 and NaCl have also been investigated to improve electron injection. Lithium(-ion) and sodium(-ion) cathode materials are identical to those used in classic LIBs and SIBs (lithium-ion and sodium-ion batteries, respectively).

Cathode materials are a sort of electric battery that can store power in energy and then convert it to electricity when needed. Cathode materials are made up of three major components: cathode, anode and solution. During the petrochemical process, the cathode defines the positive side of the terminal voltage battery, while the electrode obtains electrons from the external circuit.

Lithium iron phosphate, lithium cobalt oxide, lithium nickel manganese cobalt and lead dioxide make up the cathode material. Metal-insulator transitions, charge-ordering and co-operative Jahn-Teller distortions are just a few of the remarkable physical phenomena these materials show. Controlling the cathode material's local dynamic and structural behavior is critical for developing a custom energy storage device with innovative features.

Global Cathode Materials Market Dynamics

The rising usage of portable electronic gadgets, stationary energy storage and electric vehicles is driving greater demand for cathode material. Lithium-ion batteries with high energy density, discharge capability and fast charging are becoming increasingly popular.

Trending use of lithium-ion batteries for various purposes

The growing use of lithium-ion batteries in portable electronic accessories and equipment such as laptops, tablets, mobile phones, digital cameras and other similar devices is driving battery growth in those applications, resulting in increased demand for cathode materials. In consumer electronics and the automotive industry for starting, lighting and ignition applications, the usage of batteries is steadily increasing. Furthermore, the development of hybrid and electric engines for use in automobiles, ships and locomotives is increasing the need for batteries in the transportation industry.

The demand for cathode materials is increasing dramatically over the world as a result of this development. Another application of batteries is for power backup in homes, businesses and industries and for maintaining an uninterrupted power supply in power grids and telecom towers. With the modernization of the power sector, urbanization and the development of smart cities, demand for batteries and cathode materials is predicted to rise steadily shortly.

Rising demand for energy conservation

During the projection period, energy storage applications will likely increase product consumption. Consumer electronics, power tools, forklifts, telecommunications, ESS, UPS and transportation are all batteries' common uses. Concerns about power outages and their impact on industrial operations have fueled demand for uninterruptible power supply systems. Chemical, manufacturing, oil & gas and healthcare are just a few industries. The ongoing transition from conventional to alternative energy sources and the rising need for energy conservation is expected to accelerate the use of advanced energy storage systems.

The growing use of smart grids and renewable energy trends are expected to increase demand for these systems. Long-term, ongoing R&D to improve the efficiency of cathode materials for ESS, including lithium, sodium and nickel, is predicted to provide significant prospects for raw material makers. Growing awareness among cathode materials market players about sustainable battery material sourcing, recycling and waste disposal has been significant in optimizing the production and disposal routes across geographies.

Safety and high costs of raw materials

Limited capacity, high energy consumption in production, safety issues and high-cost raw materials are all disadvantages of inorganic cathode materials, which are frequently used. As a result, green and sustainable cathode materials with higher specific capacities, improved safety features and more abundant natural resources are required. A growing desire for cathode material safety during activities hinders the market's expansion.

COVID-19 Impact Analysis

The global market for cathode materials has been drastically impacted due to the COVID-19 epidemic. However, over the projection period, strict safety rules for batteries in terms of storage and shipping and poor conditions resulting from the COVID-19 epidemic are expected to hinder the cathode materials market's growth.

As the pandemic's negative impact on demand spreads to Chinese battery cell and cathode material producers, China's May export orders of LCO materials to Japan and South Korea are expected to drop, while export orders of LCO batteries to India are expected to drop.

Global Cathode Materials Market Segment Analysis

By battery, the cathode materials market is segmented into lithium-ion, lead-acid and others.

Lead-acid to hold the lions’ share.

In a lithium-ion battery, the cathode material is the most important component that affects the cell's energy density. Cell voltage or cell capacity are used to calculate this energy density. The lithium-ion battery's operating mechanism is based on intercalation and deintercalation chemicals. Lithium ions from the cathode are admitted into the anode during charging and withdrawn during discharging, with the anode's structural change being structural negligible.

The cathode material used is determined by several characteristics, including cell voltage, capacity, energy & power capability, cycle life and operating temperature. Cobalt, manganese, phosphate, nickel cobalt manganese (NCM OR NMC), lithium iron phosphate (LFP) and other minerals are utilized in the cathode of a lithium-ion battery. Increased demand for lithium-ion batteries has resulted from improved reliability and compatibility, which has fueled demand for cathode materials. Furthermore, the industry has grown due to an expansion in the number of applications for lithium-ion batteries.

Global Cathode Materials Market Geographical Analysis

The largest share is to be held by Asia-Pacific.

Technological improvements are causing a surge in energy storage systems in these facilities, which is projected to drive up demand for cathode materials in the future years. Asia-Pacific is expected to be a prominent revenue provider globally throughout the forecast horizon. The growing use of batteries in various industries, such as automotive, consumer electronics, power tools and energy storage systems, is likely to grow the demand for cathode materials.

The rising popularity of electric vehicles in nations like China will likely boost demand for cathode material. High energy density, discharge capacities and fast charging are advantages of lithium-ion batteries, as is the rising market for smart devices and other consumer electronics in countries like China, India and Vietnam. Aside from production, China is a major user of batteries due to its large-scale electronic and automobile manufacturing.

Russia-Ukraine War Impact

Both Russia and Ukraine play an important role in the production of critical materials such as lithium, cobalt, nickel and manganese but due to war, the production of materials got affected. Due to this, the production cost of raw materials increases, which results in an increased price of cathode materials. Due to the increment in production cost the quality of cathode materials degrade.

Due to this conflict, governments’ stringent policies and trade policies impacted the growth of the cathode materials market. Economic instability and cost fluctuation affected the overall demand of the cathode Materials market. There is trade restriction that limits the import and export of cathode materials between countries. Due to conflict, the collaboration between researchers and scientists also seems to have taken a hit.

By Battery
• Lithium-Ion
• Lead Acid
• Others

By Material
• Lithium Iron Phosphate (LFP)
• Lithium Cobalt Oxide (LCO)
• Lithium Nickel Manganese Cobalt (NMC)
• Lithium Nickel Cobalt Aluminum (NCA)
• Lithium Manganese Oxide (LMO)
• Lead-Dioxide
• Other

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In February 2024, POSCO announced the construction of the world's largest battery cathode plant cluster in Gwangyang for producing cathode materials for nickel, cobalt, and aluminum (NCA) batteries. The plant will have a production capacity of 52,500 tons of cathode materials.
• In December 2023, LG Chem commenced construction of America's largest cathode plant in Tennessee, United States, with an annual production capacity of 60,000 tons.
• In October 2023, Umicore announced the expansion of its electric vehicle (EV) battery materials production by increasing its production capacity for cathode active materials (CAM) and precursor cathode active materials (PCAM) at its plant in Ontario, Canada.
• On 20 April 2023, OCSiAL launched two highly concentrated graphene nanotubes for anode and cathode applications, offering cost-effective sustainable battery solutions, including multiwall carbon nanotubes and carbon black.
• On 1 May 2023, Cabot Corporation introduced ENTERA aerogel particles for lithium-ion batteries, designed to develop ultra-thin thermal barriers for electric vehicles. The ENTERA product is utilized by both battery and EV manufacturers, providing thermal management solutions.
• On 22 May 2023, Gotion High-tech, a China-based company, launched the L600 Astroinno battery cell pack, claiming it to be the first non-NCM battery to offer a driving range of up to 1,000 kilometers.

Competitive Landscape

The major global players in the market include Ademco Global, Aethon, ABB Group, Amazon Web Services Inc., Beetl Robotics, Berkshire Grey Inc., Cobalt Robotics, CYBERDYNE Inc., Fanuc Corporation, iRobot Corporation, inVia Robotics, Kongsberg Maritime, KUKA AG, Locus Robotics, Northrop Grumman, RedZone Robotics, Relay Robotics, Yaskawa Electric Corporation

Why Purchase the Report?
• To visualize the global battery separator market segmentation based on component, enterprise size, end-use and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of battery separator market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global cathode materials market report would provide approximately 80 tables, 85 figures, and 200 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies