Cathode Materials Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Cathode Material Market size is estimated at 3.12 Billion kilotons in 2025, and is expected to reach 9.42 Billion kilotons by 2030, at a CAGR of 24.74% during the forecast period (2025-2030).

The COVID-19 pandemic impacted the global cathode materials market. The pandemic caused global supply chain disruptions, leading to delays in producing and delivering raw materials required for cathode materials, such as lithium, nickel, and cobalt. Nevertheless, in 2021, the industry showed signs of recovery and consequently increased its market demand again.

Key Highlights

• The surging demand from the electric vehicle (EV) sector and growing demand from consumer electronics are some of the factors expected to drive the cathode materials market.
• On the flip side, safety issues with battery transportation and storage and challenges in battery recycling are expected to restrain the cathode materials market growth.
• However, batteries powering the future of renewable energy storage and innovations in cathode materials for battery sustainability may offer opportunities for market growth.
• Asia-Pacific dominates the market, owing to the growing application of cathode material in the automotive industry, which augments the demand for cathode material.

Cathode Material Market Trends

Automotive Industry to Dominate the Market

• Cathode materials in automotive batteries play a pivotal role in determining energy density, lifespan, safety, and cost. In recent years, lithium-ion batteries have dominated the landscape of new automobiles and electric vehicles.
• Various types of EV batteries employ distinct cathode chemistries, tailoring performance to the specific needs of the vehicle. For example:
• Premium electric vehicles predominantly utilize cathode materials like lithium cobalt aluminium oxide and Lithium-Nickel-Manganese-Cobalt-Oxide.
• Mid-range electric vehicles, including the Tesla Model 3, BYD, and Hyundai, utilize lithium iron phosphate cathode materials in their batteries.
• With countries worldwide witnessing a surge in electric vehicle demand, the appetite for electric vehicle batteries has similarly escalated.
• In response to this burgeoning demand, investments and government initiatives in electric vehicle battery manufacturing have surged. Recent notable government initiatives include:
• In December 2024, the Indian government unveiled a scheme worth INR 9000 crore (~USD 1,033.65 million) to bolster local manufacturing of battery components for electric vehicles and clean energy systems.
• In September 2024, Japan's government rolled out subsidies totaling USD 2.4 billion for electric vehicle battery production. According to Ken Saito, Japan's Minister of Economy, Trade and Industry, these funds will back 12 storage battery production projects.
• Additionally, in September 2024, the U.S. government declared a USD 3 billion investment plan to bolster domestic production of advanced batteries for electric vehicles. This move, aimed at curbing China's dominance in the sector, will support 25 projects across 14 states.
• These government pushes in electric vehicle battery production are poised to accelerate the consumption of various cathode materials in the coming years.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific is home to countries like China, India, and Japan, which are among the largest and fastest-growing markets for electric vehicles and electronics products.
• China's leadership in electronics and battery production is propelling the country's cathode materials market. Simultaneously, the surge in consumer electronics production and escalating investments in electric vehicles (EVs) are amplifying the demand for cathode materials in China.
• China stands at the helm of the global electric vehicle (EV) and EV battery sectors. Chinese companies manufacture nearly two-thirds of the world's EVs and over three-quarters of EV batteries. They've also pioneered significant innovations in EV products, processes, and customer interactions.
• For example, while Chinese automakers accounted for 21 percent of global passenger vehicle production—projected to rise to 33 percent by 2030—they produced 62 percent of the world's EVs and 77 percent of EV batteries in 2022. Furthermore, from 2020 to 2023, China's global EV exports surged by 851 percent, with Europe receiving nearly 40 percent of those exports.
• Leading battery manufacturers in China, bolstered by their expanding capacities, are significantly driving up the demand for cathode materials. For instance, China Aviation Lithium Battery Co. (CALB) has set ambitious targets, aiming for a total annual capacity of 500 GWh by 2025 and a whopping 1,000 GWh by 2030. In a strategic move, CALB inked contracts in 2022 to establish production facilities in Guangdong, a southern province of China, collaborating with two additional cities.
• India's electronics production skyrocketed from USD 29 billion in 2014-15 to a remarkable USD 101 billion in 2022-23. Accounting for about 3.4% of the nation's GDP, the government has committed nearly USD 17 billion over the next six years, focusing on Semiconductor and Design, Smartphones, IT Hardware, and Components.
• The Electronics System Design & Manufacturing (ESDM) sector plays a crucial role in the government's goal of achieving USD 1 trillion in economic value from the digital economy by 2025. Driven by the various government initiatives, India is witnessing a surge in domestic manufacturing, highlighted by increased production and assembly of mobile phones and consumer electronics.
• In September 2024, Tata Group, via its clean energy arm Agratas, unveiled plans for a 20 GWh battery manufacturing facility in Sanand, Gujarat. Previously, Agratas teamed up with Tata Technologies to enhance product development and enterprise systems, bolstering the design and manufacturing of battery solutions.
• In December 2024, Lohum India, a frontrunner in lithium-ion battery recycling and critical material production, expanded its footprint into Andhra Pradesh and Telangana, inaugurating a 20,000 MT Cathode Active Material (CAM) manufacturing facility.
• Hence, with all such applications and robust demand in the region, Asia-Pacific is expected to be the largest market during the forecast period.

Cathode Material Industry Overview

The cathode material market is moderately fragmented in nature, with a number of players operating in the market. Some of the major companies in the market (not in any particular order) include Shenzhen Dynanonic Co., Ltd ., LG Chem, Sumitomo Metal Mining Co. Ltd, POSCO FUTURE M, and Umicore, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support