Cathode Materials Market

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The global Cathode Materials Market is valued at USD 25.5 Billion in 2022 and is projected to reach a value of USD 69.9 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 15.5% over the forecast period.

Cathode Materials are comprised of cobalt, nickel, and manganese in a crystalline structure that forms a multi-metal oxide material to which lithium is added. This family group includes a wide range of products that can cater to various end-use industries requiring high energy densities and a higher load capacity. The global Cathode Materials market is expected to grow significantly during the forecast period owing to rising utilization within critical industries such as electric vehicles and consumer electronics. Additionally, increasing usage of energy storage devices is expected to add value to the market. The tremendous growth in the EV sector is booming. According to EV sales, rising volumetric sales of PHEVs and HEVs is expected to grow at an incremental rate, fuelling the global Cathode Materials market growth.

Rising demand for EVs is increasing heavily due to monetary and non-monetary incentives directly to EV manufacturers by government agencies combined with growing awareness about greenhouse gas emissions. This will further push the growth of the global Cathode Materials market during the forecast period. Energy storage is utilizing Cathode Materials at a vast scale. Lead-acid and Li-ion batteries are suitable for large energy storage systems as they have superior performance capabilities with high power output. This can cater to a wide range of applications. For instance, data centers use UPS, which can provide power to load various devices in emergencies when the main power fails. The growing utilization of batteries is expected to increase the footprint of the global Cathode Materials market during the forecast period.

Cathode Materials are the main building blocks for the positive electrode. A few Cathode Materials are used for manufacturing lithium-ion phosphate, lithium cobalt oxide, lead dioxide, and lithium nickel manganese cobalt. These are heavily used in EVs. Electric vehicles have huge financial offsets such as tax breaks, grants, and other non-financial perks such as access to carpool lanes and subsidiaries. Prominent leaders focus on creating cutting-edge electric mobility solutions and wider charging infrastructure. For example, Groupe Renault UK announced introducing the INCIT-EV initiative in 2020, focusing on electromobility. The program will last 48 months, and the business is expected to provide advanced wireless charging options for EVs across Europe. This is expected to widen the scope for the global Cathode Materials market.

Economic Insights

The World Bank anticipates a recession in 2023 as central banks raise interest rates. In addition, there will likely be labor scarcity and rising raw material prices. Manufacturers have already noticed the market expanding slowly, and it is predicted that in 2023 the market will grow more slowly than it did in the previous two decades. The conflict between Ukraine and Russia had a significant impact on the energy sector and other industries. It has been mentioned that Russia and Ukraine are two of the foremost gas and oil suppliers. Russia's invasion of Ukraine disrupted imports and exports, which led to an energy crisis for nations that depend on petroleum from these two nations.

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1. Rising Government Initiatives: Demand for Cathode Materials is growing due to increasing demand for advanced batteries. Various government agencies are promoting laws and initiatives to increase the sales of electric cars, which is expected to drive market revenue growth. Emerging economies are establishing fuel economy criteria, including China, U.S., and Canada are establishing legislation for electric vehicles. Additionally, they are increasing subsidy amounts for constructing and building EV infrastructure stations. The U.S. energy and transportation agencies are expected to work together and develop new ideas for establishing a nationwide fast-charging networks that will include support for 350 kW of direct current fast charging.

2. Rising Technological Developments: The global Cathode Materials market is expected to go through a continuous development cycle, making highly reliable and compatible lithium-ion batteries. This, in turn, will increase the demand for Cathode Materials. Additionally, these batteries are increasing their functional areas, such as lithium-ion batteries. Increasing demand for a higher load capacity and power density further increases the footprint of the global Cathode Materials market.

3. Higher Adoption of High-Performance Batteries: The federal policies, including the American Recovery and Reinvestment Act of 2009, offers tax credits to consumers that purchase and use electric vehicles. The new Corporate Average Fuel Economy Standards (CAFÉ) mandates the fuel economy of passenger and light commercial vehicles plying on the roads in the U.S. Rising demand for lithium-ion batteries in smartphones owing to extended shelf life, and enhanced efficiency is expected to widen the scope of the global Cathode Materials market. Rising EPA regulations on lead contamination and resulting environmental hazards combined with lead-acid storage, disposal, and recycling regulations.

Market Segmentation

The global Cathode Materials market can be categorized on the following: Material, Battery, End-Use and Regions. Based on material, the market can be categorized into li-ion Cathode Materials, lead dioxide Cathode Materials, and other Cathode Materials. By battery, the market can be segmented across lithium-ion, lead-acid, and others. By end-use, the market can be split between automotive, consumer electronics, industrial, and others. By Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Material

Lead Dioxide Cathode Materials to Dominate Market Owing to Rising Development of Commercial Vehicles

The global Cathode Materials market is expected to be dominated by the lead dioxide Cathode Materials in terms of revenue and share during the forecast period. Factors such as rising development in the production of commercial and passenger vehicles combined with increased utilization of two-wheelers are expected to add value to the segmental value. Also, the positive electrodes of most lead acid batteries are made up of lead plates or grids. They are covered with lead dioxide in a specific crystalline form with other additions, such as calcium lignosulfonate. Additionally, lead dioxide and lead have the lowest energy densities and rarely discharge highly efficiently. The lithium-ion Cathode Materials is expected to grow with the fastest growing CAGR during the forecast period owing to increasing utilization in electric vehicles.

Based on Battery

Lithium-Ion to Occupy Largest Market Share Due to Rising Demand of LFP and NMC Batteries

Lithium-ion batteries are expected to lead the global Cathode Materials market in terms of revenue and share during the forecast period. Factors such as the growth of the segmental value can be attributed to increasing demand for LFP and NMC lithium-ion batteries (chemistry type) within plug-in vehicles. Additionally, the growing adoption of lithium-ion batteries within renewable energy storage devices is expected to increase the footprint further. Lithium-ion batteries are heavily utilized in the automotive and telecommunication industries. Due to increased developments, lead-acid batteries are expected to grow with the fastest-growing CAGR during the forecast period.

Based on End-Use

Automotive to Own Largest Market Share Owing to Rising Utilization in Commercial Vehicles

The automotive segment is expected to account for the largest market share during the forecast period in revenue and sales. Rising automotive sales and increased investments in public EV charging infrastructure are expected to add value to the segmental growth. Additionally, an increasing number of strengthened rules for phasing for internal combustion engines and rising incentives and subsidies for EV adoption are further expected to widen the automotive segment growth. Government agencies are investing heavily in infrastructure for charging vehicles by funding public charging stations or subsidizing private charging stations at residences and workplaces. Consumer electronics is expected to grow at the fastest growing CAGR during the forecast period owing to rising laptops, televisions, and smartphones sales.

Based on Region

Asia Pacific to Account Largest Market Share Owing to Rising Demand for Battery Energy Systems

The global Cathode Materials market is expected to be dominated by the Asia Pacific region in terms of revenue and share. Factors such as increasing demand for battery energy systems and rising battery consumption in emerging economies such as China, India, South Korea, and Japan will add value to the Asia Pacific Cathode Materials market. China is expected to be the regional leader in the production and export of Cathode Materials. It is readily heading towards becoming the largest EV manufacturer in the world. Additionally, expanding energy initiatives and aggressive financial commitments toward building public charging infrastructure will increase the footprint for regional growth.

North America is expected to grow with the fastest growing CAGR during the forecast period owing to rapid technological advancements in the field of automotive combined with rising investments in manufacturing consumer electronics. The U.S. will account for most of the North American market share owing to the presence of numerous electric vehicle manufacturers.

Competitive Landscape

The global Cathode Materials market is highly fragmented due to numerous international and regional players. Prominent players focus on increasing their manufacturing capabilities to cater to the ongoing demand. Additionally, increased investments are being made into the research and development departments to further expand their footprint in the competitive landscape and further diversify their product portfolio.

The key players in the global Cathode Materials market include - 3M (U.S.), BASF SE (Germany), Hitachi Chemical Co. Ltd. (Japan), Johnson Matthey (U.K.), LG Chem (South Korea), Mitsubishi Chemical Corporation (Japan), Mitsui Mining & Smelting Co. Ltd. (Japan), POSCO (South Korea), Sumitomo Metal Mining Co. Ltd. (Japan), Umicore (Germany) among others.

Recent Market Developments:

· April 2022: POSCO Chemicals announced that they began constructing their new manufacturing plant capable of producing 30,000 tons of high-purity nickel cathodes. This is expected to help the company to expand its consumer base for the Cathode Materials market.

· May 2022: Umicore inaugurated their new global R&D center for Cathode Materials in Cheonan, Korea. It will focus on producing the next generation of battery materials, including very high-nickel NMC, low-cobalt NMC, manganese-rich chemistries, and solid-state battery technologies.

· August 2021: Ningbo Shanshan Co. Ltd announced they were forming a joint venture with BASF SE. The newly formed entity – BASF Shanshan Battery Materials Co. Ltd., will produce precursor and cathode active materials.

Segmentation of the Global Cathode Materials Market