High-nickel Cathode Materials Market Size & Share, by Battery Type (Lithium-Ion, Lead-Acid), End User (Automotive, Consumer electronics, Industrial), Application (3C Electronic Products, New Energy Vehicles) - Global Supply & Demand Analysis & Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5776
  • Published Date: Mar 01, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

High-nickel Cathode Materials Market size is anticipated to reach USD 20 Billion by the end of 2036, growing at a CAGR of 8% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of high-nickel cathode materials was USD 10 Billion. The primary growth driver propelling the market is the relentless surge in the adoption of electric vehicles (EVs) worldwide. As nations and consumers intensify their commitment to sustainable and eco-friendly transportation solutions, the demand for high-performance lithium-ion batteries, in which high nickel cathodes play a pivotal role, has reached unprecedented levels. The electric vehicle revolution is reshaping the automotive landscape, with consumers and governments alike prioritizing cleaner alternatives to traditional internal combustion engine vehicles. High nickel cathode materials, known for their superior energy density and performance characteristics, have become indispensable in lithium-ion batteries, the powerhouses driving the electric mobility paradigm.

High-nickel cathode materials are a crucial component in lithium-ion batteries, which are widely used in electric vehicles (EVs), consumer electronics, and renewable energy storage systems. The cathode materials play a significant role in determining the performance and energy density of these batteries. The increasing adoption of electric vehicles globally is a major driver for the market. High nickel cathodes contribute to higher energy density and better performance in lithium-ion batteries, making them more suitable for EVs.


High-nickel Cathode Materials Market
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High-nickel Cathode Materials Sector: Growth Drivers and Challenges

Growth Drivers

  • Surging Electric Vehicle (EV) Sales: The exponential growth in electric vehicle adoption has become a primary catalyst for the high-nickel cathode materials market. As governments worldwide intensify their focus on decarbonizing transportation and consumers embrace eco-friendly alternatives, the demand for high-performance lithium-ion batteries, where high nickel cathodes play a crucial role, has surged. Enhanced energy density and improved performance make high-nickel cathode materials essential for meeting the evolving needs of the electric vehicle market. According to the International Energy Agency (IEA), global electric car sales witnessed a remarkable increase of 41% in 2020, reaching over 3 million units. The total global electric car stock surpassed 10 million units in the same year, indicating a robust and accelerating shift towards electric mobility.
  • Renewable Energy Storage Expansion: The expansion of renewable energy sources necessitates effective energy storage solutions. High-nickel cathode materials contribute significantly to the development of advanced lithium-ion batteries used in stationary energy storage systems. The ability to store excess renewable energy and release it when needed enhances the stability and reliability of renewable energy grids, further driving the demand for high nickel cathode materials.
  • Advancements in Material Science and Technology: Ongoing research and innovation in material science are pivotal in shaping the high-nickel cathode materials market. Breakthroughs, such as achieving higher energy densities, are instrumental in enhancing the overall performance of lithium-ion batteries. Collaborations between research institutions and industry players contribute to the continuous evolution of cathode materials, providing a competitive edge in the market. Concerns over supply chain vulnerabilities have prompted a renewed focus on achieving resilience and diversification. High-nickel cathode materials heavily rely on nickel, cobalt, and other critical minerals. Efforts to secure a stable and diversified supply chain contribute to the sustainability of the market, mitigating potential disruptions.

Challenges

  • Raw Material Supply and Pricing Volatility: High-nickel cathode materials rely on raw materials such as nickel, cobalt, and lithium. The mining and extraction processes for these materials can be environmentally sensitive, and geopolitical factors or supply chain disruptions can lead to volatility in prices and availability. Fluctuations in raw material prices and potential shortages can affect production costs, impacting the overall competitiveness of high-nickel cathode materials in the market. The mining of critical minerals, including nickel and cobalt, is associated with environmental and ethical concerns. Issues such as child labor, unsafe working conditions, and environmental degradation in mining regions can affect the industry's reputation.
  • Cobalt Dependency Reduction
  • Technology and Performance Optimization

High-nickel Cathode Materials Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~8%

Base Year Market Size (2023)

~ USD 10 Billion

Forecast Year Market Size (2036)

~ USD 20 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)
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High-nickel Cathode Materials Segmentation

Battery Type (Lithium-Ion, Lead-Acid)

The lithium-ion segment in the high-nickel cathode materials market is estimated to gain the largest revenue share of 60% by 2036. Lithium-ion batteries are integral to the integration of renewable energy sources such as solar and wind into the power grid. The intermittent nature of renewable energy production requires efficient energy storage solutions to balance supply and demand. Lithium-ion batteries provide a reliable and scalable solution, supporting the transition to a cleaner and more sustainable energy landscape. According to the International Renewable Energy Agency (IRENA), global renewable capacity additions in 2020 reached 260 gigawatts, marking a 50% increase compared to the previous year. The renewable energy sector's expansion emphasizes the need for effective energy storage solutions, with lithium-ion batteries playing a pivotal role. The ubiquity of consumer electronics underscores the importance of lithium-ion batteries in powering these devices. The increasing sophistication of smartphones, wearable devices, and other gadgets necessitates energy-dense and lightweight battery solutions.

End User (Automotive, Consumer Electronics, Industrial)

The automotive segment in the high-nickel cathode materials market is expected to garner a significant share during the forecast period. Evolving consumer preferences, especially in urban areas, are impacting how people view vehicle ownership. The rise of ride-hailing services, car-sharing platforms, and other mobility-as-a-service models is reshaping the automotive landscape. Automakers are adapting to these trends by exploring new business models and developing vehicles tailored to meet the needs of urban mobility, contributing to the ongoing growth and transformation of the automotive segment. The automotive industry's focus on improving fuel efficiency and reducing carbon emissions has led to a shift towards lightweight materials. Light weighting is crucial for achieving regulatory fuel efficiency standards and enhancing the performance of electric vehicles. Automotive manufacturers are incorporating materials such as high-strength steel, aluminum, and composite materials to reduce vehicle weight while maintaining structural integrity, contributing to the growth of the automotive segment.

Our in-depth analysis of the global market includes the following segments:

     Battery Type

  • Lithium-Ion
  • Lead-Acid

 

   

     End User

  • Automotive
  • Consumer Electronics
  • Industrial

     Application

  • 3C Electronic Products
  • New Energy Vehicles

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High-nickel Cathode Materials Industry - Regional Synopsis

APAC Market Forecast

The high-nickel cathode materials market in the Asia Pacific region is projected to hold the largest revenue share of 38% by the end of 2036. International collaboration is a significant growth driver for the market in the Asia Pacific region. Partnerships between countries, such as Australia and India, underscore the importance of joint efforts to strengthen the supply chain for critical minerals. Collaborations facilitate knowledge exchange, technological advancements, and resource access, fostering a conducive environment for the sustained growth of the market. Government initiatives and investments play a pivotal role in the growth of the market in the Asia Pacific region. Countries like China are aggressively promoting the adoption of electric vehicles and renewable energy sources. China, a major player in the Asia Pacific region, announced plans to invest nearly USD 60 billion in renewable energy projects, including electric vehicle infrastructure, as part of its commitment to achieving carbon neutrality by 2060.

North American Market Statistics

The high-nickel cathode materials market in the North America region is projected to hold the second largest revenue share during the forecast period. The establishment of large-scale battery manufacturing facilities, such as Tesla's Gigafactory, signifies a commitment to scaling up production to meet the demand for electric vehicles. These facilities rely on high-nickel cathode materials for the production of advanced lithium-ion batteries. Investments in such manufacturing plants contribute to the growth of the market in North America by ensuring a steady supply of batteries for the expanding electric vehicle market. The increasing preference for electric vehicles among North American consumers is a significant driver for the market. As awareness of environmental issues and the benefits of electric mobility rises, consumers are more inclined to choose electric vehicles. The automotive industry's response to this demand involves the incorporation of high-nickel cathode materials to enhance the performance and range of electric vehicles.

Research Nester
High-nickel Cathode Materials Market  size
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Companies Dominating the High-nickel cathode materials Landscape

top-features-companies
    • BASF SE
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Umicore SA
    • Sumitomo Metal Mining Co., Ltd.
    • POSCO
    • Johnson Matthey
    • Tanaka Chemical Corporation
    • 3M Company
    • LG Chem Ltd.
    • Hitachi Chemical Co., Ltd.
    • Showa Denko K.K.

In-the-news

In The News

  • This major acquisition strengthens BASF's position in the high-performance polyamides market, expanding their product portfolio and geographic reach.
  • This new platform offers customers a range of sustainable and responsible ingredients for the personal care industry, aligning with the growing demand for eco-friendly products.

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 5776
  • Published Date: Mar 01, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for automotive sector is the major factor driving the market growth.

The market size of high-nickel cathode materials is anticipated to attain a CAGR of 8% over the forecast period, i.e., 2024-2036.

The major players in the market BASF SE, Umicore SA, Sumitomo Metal Mining Co., Ltd., POSCO, Johnson Matthey, Tanaka Chemical Corporation, and others.

The automotive segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
High-nickel Cathode Materials Market Report Scope
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