Cathode Materials Market Forecasts to 2028 – Global Analysis By Material (Lead Dioxide, Lithium Iron Phosphate, Lithium Nickel Manganese Cobalt, Lithium Cobalt Oxide (LCO), Lithium Manganese Oxide (LMO), Oxyhydroxide, Sodium Iron Phosphate, Sulfur Cathode

Cathode Materials Market Forecasts to 2028 – Global Analysis By Material (Lead Dioxide, Lithium Iron Phosphate, Lithium Nickel Manganese Cobalt, Lithium Cobalt Oxide (LCO), Lithium Manganese Oxide (LMO), Oxyhydroxide, Sodium Iron Phosphate, Sulfur Cathodes, Lithium Nickel Cobalt Aluminum Oxide), Type (Lithium Ion, Lead Acid), Application (Portable Gadgets, Power Tools, Medical Devices, Power Storage Systems, Wireless Peripherals or Cordless Devices), End User (Power Tools, Automotive, Consumer Electronics, Energy System Storage), and Geography

According to Stratistics MRC, the Global Cathode Materials Market is accounted for $25.90 billion in 2022 and is expected to reach $67.12 billion by 2028 growing at a CAGR of 17.2% during the forecast period. Batteries have cathodes, which serve as electron storage during discharge. The most crucial element of a lithium-ion battery, which is frequently used in portable electronic devices like cell phones, laptops, tablets, cameras, and other similar ones, is the cathode material. Electric vehicles also use this kind of battery. The global cathode materials market has expanded as a result of the rising demand for electric vehicles and portable electronic gadgets. Additionally, the utilisation of cathode materials in diverse applications is rising as lithium technology develops, such as with gold nanowire batteries that can endure prolonged recharging.

According to Power-Technology, a US-based journal which provides information on the global energy industry, there was an increase in the sale of electric vehicles by 160% in the first half of 2021, which stood at 2.6 million units. In addition, China remained the world's top EV market, with 1.1 million vehicles sold in the first half of 2021, accounting for 12% of sales.

Market Dynamics:

Driver:

Increasing Applications of Lithium-Ion Batteries Boosting the Demand

The most popular battery type is lithium-ion, which is utilised in a variety of products including portable power banks, marine & electric vehicles, and solar energy storage. Lithium-ion batteries' capacity and voltage are determined by the cathode materials utilised in their production. They are superior to conventional rechargeable batteries in terms of longer charge retention, higher energy density, voltage capacity, lower self-discharge rate, and better power efficiency as a single cell. They are frequently utilised in consumer electronics and electric cars as a result of these qualities. In addition, rising demand for EVs and consumer electronics will drive up the need for lithium-ion batteries, which will in turn drive up the market for cathode materials.

Restraint:

Lack of raw material availability and safety issues

The negatively charged electrode, or cathode, in practically all lithium-ion batteries contains cobalt, a rare mineral. The heavy metal cobalt is linked to unethical mining methods, erratic price swings, and a precarious global supply chain. Cobalt, a common cathode material for batteries, has previously had supply issues as a result of the closure of manufacturing facilities in Australia and Africa. The handling of batteries-related problems is the market's second main obstacle. Lithium batteries should be handled very carefully when being stored and transported; if not, they could become damaged and start a large fire or explosion. Furthermore, inappropriate battery handling, use, or charging can injure the user as well as the battery. As a result, difficulties with battery safety and a scarcity of raw materials are impeding the market's expansion.

Opportunity:

Increased demand for electric vehicles in Europe

Demand for Cathode material is increasing in Europe as a result of the growing popularity of EVs. Batteries for electric vehicles are made of these materials. Due to growing worries about environmental pollution and government subsidies, Europe is quickly becoming into a global hub for the electric vehicle (EV) sector. Additionally, according to causal base data, the sales of EV and Plug-in Hybrid Electric Vehicles (PHEV) in Europe were 2, 82,000 and 1, 32,000 units, respectively. Sales for both types of vehicles increased by 22%, with 3, 45,000 PHEVs and 1, 90,000 EVs sold. As a result, the need for cathode materials like lead dioxide, carbon nanotubes, and lithium cobalt oxide will increase along with the demand for electric vehicles. Because of this, the demand for cathode material in Europe will be greatly fuelled.

Threat:

Lack of government subsidies and incentives

Most nations, including Germany, China, and the US, are experiencing an increase in demand for lithium-ion batteries. Applications for these batteries include the storage of renewable energy sources and electric cars. Governments from different nations are concentrating on subsidies and incentives to stimulate the production of lithium-ion batteries in an effort to promote renewable energy. However, the government does not make a lot of contributions to boosting lithium-ion battery manufacture in places like Africa. This is impeding the development of these batteries, which is having a detrimental effect on the market for cathode materials.

Covid-19 Impact

Companies are being forced to coordinate their efforts due to the significant changes the COVID-19 epidemic has brought about in the supply chain for cathode materials and the growing movement to switch to greener, more dependable, and sustainable energy sources. Further, the need for Cathode Materials sector players to be more watchful and forward-thinking is pressing due to worries about the global economic slowdown, the impact of the war in Ukraine, and the risks of stagflation with potential market scenarios. Manufacturers of cathode materials and other related entities are developing country-specific strategies in response to the significant regional variations in the economic and social impact of COVID.

The lithium cobalt oxide segment is expected to be the largest during the forecast period

The lithium cobalt oxide segment is estimated to have a lucrative growth, due to the usage of lithium cobalt oxide or lithium cobaltate compounds, whose particle sizes range from nanometers to micrometres, as the cathode in rechargeable lithium-ion batteries. Compared to batteries using nickel-cobalt-aluminum (NCA) oxide cathodes, lithium-cobalt oxide batteries are relatively stable, have low capacity, and produce less power. The lithium cobalt oxide battery's key feature is its high energy density, which translates into a lengthy runtime for portable electronics like smartphones, tablets, laptops, and cameras. As opposed to other nickel-rich materials, lithium cobalt oxide manages any problem with heat stability. These materials' features will increase the need for lithium cobalt oxide, which will further fuel the market for cathode materials.

The portable gadgets segment is expected to have the highest CAGR during the forecast period

The portable gadgets segment is anticipated to witness the fastest CAGR growth during the forecast period; due to the production of rechargeable batteries for portable devices like smartphones, laptops, cameras, power banks, and speakers has a significant need for cathode material. Due to their high power density, self-discharge-ability, low maintenance requirements, and greater cell voltage, Li-ion batteries are the most frequently utilised in these devices because they allow for extended usage times. Rechargeable Li-ion batteries are essential to these portable devices' ability to power smartphones, store energy, and have good thermal stability. The market for cathode materials will expand in direct proportion to the sales of these devices.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the growing industrialization of emerging nations like India, China, and Thailand, the Asia-Pacific region held the greatest market share for cathode materials globally. Because of its supportive government, robust manufacturing sector, and increasing investment in the production of electric vehicles by industry titans, China is anticipated to drive the global demand for cathode materials. The nation is now among the top consumers of cathode material as a result of these considerations.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the development of more compatible products, like UAVs and electric-powered aircraft, in the aerospace, automotive, and electronics industries. Additionally, the expansion of the market during the study period is anticipated to be fuelled by the automotive industry's growing production of lightweight, electric, and hybrid vehicles.

Key players in the market

Some of the key players profiled in the xxx Market include Mitsubishi Chemical Holdings, DOW Chemical, 3M, BASF, Hitachi Chemical, Nippon Chemical Industrial Co. Ltd., LG Chem Ltd., Asahi Kasei Corporation, Tanaka Chemical Corporation, Kureha Corporation, NEI Corporation, Johnson Matthey plc, Sumitomo Corporation and Advanced Lithium Electrochemistry, Umicore N.V and Nano One Materials Corp.

Key Developments:

In November 2020, BASF SE announced a new cathode active materials production plant in Schwarzheide, Germany. This new plant equipped with world-leading process technology and enables the supply of around 400,000 full electric vehicles per year with BASF battery materials. This will further drive the cathode material market growth.

In December 2019, Umicore N.V. completed the acquisition of the cobalt refining and cathode precursor activities in Kokkola, Finland, from Freeport Cobalt. With this acquisition, Umicore’s expanded battery materials value chain enhanced cathode materials production capacity, and strengthened its position in the European market.

In August 2019, Nano One Materials Corp. launched a new material “Lithium Nickel Manganese Cobalt (NMC)” with an aim to make high energy lithium-ion batteries safer and more durable. With this new launch Nano One Materials Nano One expanded its products offering for its customers, which will further drive the cathode material market growth.

Materials Covered:
• Lead Dioxide
• Lithium Iron Phosphate
• Lithium Nickel Manganese Cobalt
• Lithium Cobalt Oxide (LCO)
• Lithium Manganese Oxide (LMO)
• Oxyhydroxide
• Sodium Iron Phosphate
• Sulfur Cathodes
• Lithium Nickel Cobalt Aluminum Oxide
• Other Materials

Types Covered:
• Lithium Ion
• Lead Acid
• Other Types

Applications Covered:
• Power Tools
• Automotive
• Consumer Electronics
• Energy System Storage
• Other End Users

End Users Covered:
• Building & Construction
• Industrial Packaging & Transport
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements