Cathode Active Material Market

Cathode Active Material Market Study by Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Manganese Oxide, Lithium Nickel Manganese Cobalt Oxide, and Others From 2024 to 2034

Analysis of Cathode Active Material Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Cathode Active Material Market Outlook (2024 to 2034)

According to the latest study released by Fact.MR, the global cathode active material market has been projected to rise from a size of US$ 29.85 billion in 2024 to US$ 49.55 billion by the end of 2034. Demand is evaluated to increase at a CAGR of 5.2% between 2024 and 2034.

The growing adoption of electric vehicles (EVs) is positively influencing the demand for cathode-active materials. Batteries are the main component of EVs, and cathode materials have a direct impact on battery performance and cost, which is making them an important driver of the shift toward EVs. Renewable energy sources, such as solar and wind need effective storage solutions because they are intermittent.

The growing use of CAM-dependent lithium-ion batteries in grid-scale energy storage systems is driving up the need for high-performance cathode materials. The market for cathode active material is benefiting from the measures that governments in several countries are taking initiatives for renewable energy and lower carbon footprints. Research grants, tax breaks, and subsidies are driving investments in battery materials, which is positively affecting the market.

The East Asia region is estimated to account for 27.1% of the worldwide cathode active material market share in 2024. In East Asia, China holds a leading position because of its strong supply chain and significant battery production capabilities. The production of cathode active materials is increasing in the region because of the increasing adoption of EVs as well as increasing investments in renewable energy storage.

Based on application, the automotive segment is analyzed to generate revenue worth US$ 11.95 billion in 2024 because of the quick transition to electric vehicles (EVs), which is driven by government incentives in several countries, environmental legislation, customer demand, and others. This is driving an increase in the use of cathode active material (CAM) in the automotive sector.

Report Attributes Details
Cathode Active Material Market Size (2024E) US$ 29.85 Billion
Forecasted Market Value (2034F) US$ 49.55 Billion
Global Market Growth Rate (2024 to 2034) 5.2% CAGR
North America Market Value (2024E) US$ 8.44 Billion
South Asia & Pacific Market Growth Rate (2024 to 2034) 7.7 CAGR
Lithium Cobalt Oxide (LCO) Segment Value (2034F) US$ 11.24 Billion
Solid-State Synthesis Segment Value (2034F) US$ 19.85 Billion
Key Companies Profiled BASF SE; Targray; NEI Corporation; Nichia; Umicore; Hunan Reshine New Material Co. Ltd.; Pulead Technology Industry Co.; Hunan Shanshan New Material Co. Ltd.; Advanced Lithium Electrochemistry Co. Ltd.; Toda Kogyo

The development of sustainable energy sources together with the deployment of smart energy storage/ conservation technologies have significantly fueled the demand for batteries as an energy storage solution. Additionally, the introduction of electric vehicles is anticipated to be a prominent disruption in the automotive industry.

The increasing penetration of electric vehicles across the globe is anticipated to escalate the demand for electric vehicle batteries. This is creating lucrative growth opportunities for cathode active material shortly. Moreover, the dynamic demand for these energy storage solutions like higher durability, fast charging, and long service life is likely to fuel the demand for the use of advanced materials in these batteries.

The cathode active material is responsible for supplying ions while the battery is in charging or discharging mode. The quality of the cathode active material largely affects the overall performance of the cell/ battery. Also, the quality control steps need to be initiated at the raw material production stage. To avoid any compromise with cell quality, prominent battery cell manufacturers are developing cathode active materials in-house.

Don't Need a Global Report?

save 40%! on Country & Region specific reports

Cathode Active Material Market - Dynamics

The electric vehicle industry is anticipated to witness significant growth shortly owing to stringent government policies along with the various added incentives/subsidies for their large-scale adoption. One of the prominent factors driving the growth of the cathode active material is its high demand for electric vehicle batteries.

Apart from electric vehicles, the development of hybrid engines for marine and locomotive applications is further anticipated to escalate the demand for cathode active material. Moreover, the increasing demand for consumer electronics goods (laptops, smartphones, and others) is anticipated to positively affect the cathode active materials market. Furthermore, with modernization in the utility sector, as well as the development of smart cities, demand for batteries and thereby cathode active material is projected to witness a snowball effect shortly.

Cathode Active Material Market - Regional Outlook

Asia Pacific, spear-headed by China is anticipated to hold the lion’s share in the global cathode active material market. The high presence of electric vehicle battery manufacturers in this region is anticipated to boost the demand for cathode active material shortly.

Additionally, higher investment of key EV manufacturers in China owing to the availability of economic labor in this region is likely to escalate the cathode active material demand during the forecast period. Moreover, demand for cathode active material in Europe and North America is further projected to witness significant growth till 2028. The higher penetration of electric vehicles in Europe is further expected to propel the demand for cathode-active materials in this region. Latin America and Middle East & Africa are likely to witness moderate growth in the global cathode active material market.

More Insights, Lesser Cost (-50% off)

Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR

Cathode Active Material Market - Prominent Players

The cathode active material manufacturers are focused on using organic for rechargeable batteries. These organic cathode active materials have high mass-energy density since they undergo multiple electron redox reactions per molecule. The prominent players engaged in the production of cathode active materials are as mentioned below:

  • BASF SE
  • Targray
  • NEI Corporation
  • Nichia
  • Umicore
  • Hunan Reshine New Material Co. Ltd.
  • Pulead Technology Industry Co.
  • Hunan Shanshan New Material Co. Ltd.
  • Advanced Lithium Electrochemistry Co. Ltd.
  • Toda Kogyo

The potential breakthrough via technological innovation is anticipated to shift preference toward using different cathode active materials. Moreover, government policies and intensive competition among the existing players are further expected to affect the global cathode active material industry during the forecast period.

The research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The cathode active material market report provides analysis and information, according to market segments such as geographies, material types, and applications.

The Cathode Active Material Market Report Covers Exhaustive Analysis On

  • Market Segments
  • Market Dynamics
  • Market Size & Demand
  • Current Trends/Issues/Challenges
  • Competition & Companies involved
  • Value Chain

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

The Cathode Active Material Market Regional Analysis Includes

  • North America (U.S., Canada)
  • Latin America (Mexico, Brazil, Argentina, Chile, Peru)
  • Western Europe (Germany, Italy, France, U.K, Spain, BENELUX, Nordic, Eastern Europe)
  • CIS & Russia
  • Asia-Pacific (China, India, ASEAN, South Korea)
  • Japan
  • Middle East & Africa (GCC Countries, South Africa, Turkey, Iran, Israel)

The Cathode Active Material report is a compilation of first-hand information, qualitative and quantitative assessments by industry analysts, and inputs from industry experts and industry participants across the value chain. The Cathode Active Material report provides an in-depth analysis of parent market trends, macroeconomic indicators, and governing factors along with market attractiveness as per segments. The Cathode Active Material report also maps the qualitative impact of various market factors on market segments and geographies.

The Cathode Active Material Market Report Highlights

  • A Detailed overview of the parent market
  • Changing market dynamics in the industry
  • In-depth market segmentation
  • Historical, current, and projected market size in terms of volume and value
  • Recent industry trends and developments
  • Competitive landscape
  • Strategies of key players and products offered
  • Potential and niche segments, geographical regions exhibiting promising growth
  • A neutral perspective on market performance
  • Must-have information for market players to sustain and enhance their market footprint

Segmentation of Cathode Active Material Market Research

  • By Material Type :

    • Lithium Cobalt Oxide (LCO)
    • Lithium Iron Phosphate (LFP)
    • Lithium Manganese Oxide (LMO)
    • Lithium Nickel Manganese Cobalt Oxide (NMC)
    • Lithium Nickel Cobalt Aluminum Oxide (NCA)
    • Others
  • By Manufacturing Process :

    • Solid-State Synthesis
    • Co-Precipitation
    • Others
  • By Application :

    • Consumer Electronics
    • Automotive
    • Energy Storage Systems
    • Industrial
    • Aerospace & Defense
    • Others
  • By Region :

    • North America
    • Western Europe
    • Eastern Europe
    • Latin America
    • East Asia
    • South Asia & Pacific
    • Middle East & Africa

- FAQs -

Will rising demand for batteries benefit cathode active material suppliers?

The high use of cathode active materials in battery manufacturing is stimulating demand for cathode active materials.

Why are cathode active material manufacturers investing in Asia Pacific?

The growing popularity of electric vehicles and supportive government initiatives will provide rewarding business opportunities.

Where will the use of cathode active material increase more?

The use of cathode active materials is surging in electric vehicle batteries over the coming years.

Cathode Active Material Market

Schedule a Call