Cathode Material Market Size, Share, Opportunities, And Trends By Material (Lithium-Ion, Lead Dioxide, Others), By Battery Life (Lithium Iron Phosphate, Lithium Cobalt Oxide, Others), By End-User (Automotive, Consumer Electronics, Industrial, Others), And By Geography - Forecasts From 2024 To 2029

The cathode materials market is projected to grow considerably during the forecast period

The increasing demand for electric vehicles, the increased use of lithium-ion batteries in energy storage systems, and global government regulations aimed at enhancing vehicle fuel economy are the main factors driving the demand for the cathode materials market. The market is also anticipated to expand as a result of the growing use of cathode materials in a variety of industries and rising investments in the renewable energy sector. Moreover, the market will have a lot of opportunities due to the developing research and technological advancements in cathode materials and efficient electrolytes. This could improve their overall performance in terms of stability, charge density, and durability.

Increasing demand for cathode materials in the automotive sector

Due to the extensive cathode material consumption in vehicle batteries, there is a high demand in the automotive sector. Car makers are investing more in electric vehicles as a result of falling Li-ion battery prices and rising fuel demand. OICA reports that the number of vehicles produced globally in 2021 was 80.2 million, a 3% rise over the 77.6 million units produced in the year prior. The production of automobiles rose by 6% in 2022 to 85.01 million units. Moreover, the main factor propelling the market's expansion is the rising car production levels brought on by consumers' growing demands. Three new lithium projects in Quebec, Canada, are anticipated to begin production in 2023 and produce more than 50,000 tonnes of LCE cumulatively.

Increasing demand for electric vehicles is contributing to the rise of the cathode materials market

The need for electric cars, or EVs, has grown significantly in the last several years. Global volume sales of battery electric vehicles (EVS) and plug-in hybrid electric vehicles (PHEVs) increased significantly in 2021, according to data from EV-Sales Volumes. Many factors, including government financial and non-financial incentives to EV manufacturers and growing public awareness of the rising levels of greenhouse gas emissions, are responsible for this increase in demand. The cathode materials market size is therefore anticipated to increase following the growth in HEVS, PHEVS, and EVS demand.

High battery usage in energy-storage gadgets

Everything that is used to store electric energy is considered an energy storage device. Large-capacity energy storage systems are compatible with lead-acid and lithium-ion batteries. These batteries are made to work exceptionally well and provide a lot of power in a variety of applications. For example, data centres use UPSs, which supply a load with power if the main power fails. Therefore, it is anticipated that the cathode materials market will grow as batteries are used in energy storage systems more frequently.

Expanding use of lead dioxide

During the projected period, the lead dioxide segment is expected to hold a significant market share. It functions as the positive electrode in lead-acid batteries, which are frequently used for backup power, stationary energy storage, and other applications. However, the lead-acid battery industry is more strongly linked to the growth of the lead dioxide category than it is to the broader cathode materials market, which is connected to advanced battery technologies like lithium-ion.  Uninterruptible power supplies (UPS), stationary energy storage systems, and renewable energy storage all use lead-acid batteries. The demand for lead-acid batteries may be impacted by the expansion of renewable energy installations and the requirement for reliable backup power.

Increased government subsidies

In batteries, the cathode materials are widely used in many different industries. The market for cathode materials has been greatly impacted by the depletion of fossil fuel reserves and the growing awareness of renewable energy storage options. Therefore, the governments of many nations have implemented a variety of programs and subsidies to encourage and support the development of renewable resources to support this expanding market. For instance, China stated in 2020 that it would finance the construction of charging stations with USD 1.4 billion in subsidies. Moreover, to encourage more people to drive electric vehicles, the German government announced that same year that all of its gas stations would have EV charging stations installed.

Asia Pacific cathode materials market is projected to grow at a high rate during the forecast period

Throughout the forecast period, the Asia-Pacific region is anticipated to grow considerably in the cathode materials market. The market is anticipated to grow as a result of factors like the rising demand for battery energy systems, the expanding need for energy, and the rising number of battery users worldwide. The need for cathode materials is predicted to rise in response to the growing use of batteries across a wide range of industries, including energy system storage, consumer electronics, power tools, and automobiles. It is anticipated that the growing use of electric vehicles in nations like China will increase the need for cathode material. Furthermore, the region's cathode materials market is anticipated to be driven by expanding projects and bold investments in renewable energy made by nations like China and India.

Market key launches

• In June 2023, LG Chem announced that the mass manufacturing of single-crystal high-nickel cathodes for next-generation batteries has begun at its cathode plant in Cheongju, 120 kilometres southwest of Seoul. Beginning in July, the first batches will be shipped to customers worldwide. After that, by 2027, LG Chem intends to extend the production line for single-crystal high-nickel cathodes to its Gumi facility, bringing the total yearly production capacity to more than 50,000 tons.
• In December 2022, BASF TODA Battery Materials delivered the first customized product in Japan for PPES's safe, secure, and high-quality batteries. By working together strategically, both businesses can investigate further international growth prospects for a battery supply chain that is more sustainable. To support PPES's cutting-edge battery cell solutions for the electric vehicle market, BTBM supplied a recently developed product from its high-performance CAM portfolio. One of the biggest CAM calcination facilities in the world, BTBM's Onoda site, produced the first batch.
• In November 2022, leading battery materials and technology company NOVONIX Limited announced today the launch of its new pilot production facility, which aims to establish NOVONIX as a leader in the cathode technology market. The program will use NOVONIX's all-dry cathode synthesis technology to pilot its patent-pending material production technology, to serve the rapidly growing electric vehicle (EV) and energy storage sectors. It will be housed in a recently opened 35,000-square-foot facility. With a production target of up to 10 tonnes annually, this pilot-scale facility will enable the Company to show that large-scale production is feasible.

Segmentation:

• By Material
  • Lithium-Ion
  • Lead Dioxide
  • Others
• By Battery Life
  • Lithium Iron Phosphate
  • Lithium Cobalt Oxide
  • Others
• By End-User
  • Automotive
  • Consumer Electronics
  • Industrial
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others