Prismane

Global Cathode Materials Market Analysis, By Demand, By Types, By Applications and Forecast Report Until 2032

Introduction

The surge in minerals demand and geopolitical efforts to secure a stable supply have propelled cathode materials into the spotlight, playing a key role in the green energy transition. The Department of Energy outlines that a lithium-ion battery consists of an anode, cathode, separator, electrolyte, and two current collectors. The cathode materials, including Nickel (Ni), Manganese (Mn), Lithium (Li), and Cobalt (Co), are vital components, constituting approximately 25% of the battery construction.

Demand Analysis

In 2023 the cathode market witnessed dynamism, especially in cobalt. Electric vehicles (EVs) emerged as the primary consumer of cobalt, accounting for 40% of end-use demand, with EVs responsible for 86% of the annual demand growth. Nickel-cobalt-manganese (NCM) chemistries dominated cobalt demand, surpassing lithium cobalt oxide (LCO) for the first time. However, weaknesses in the portable electronics sector, attributed to the cobalt-intensive nature of LCO cathodes, impacted overall demand.

The Democratic Republic of the Congo (DRC) maintained its position as the major cobalt supplier, contributing to 70% of the annual growth. Indonesia, fuelled by domestic nickel-cobalt mines and high-pressure acid leach capacity, became the second-largest producer. Despite efforts to substitute cobalt, it remains crucial for the battery supply chain, and demand is projected to exceed 200 Kiloton by 2030, with the DRC and Indonesia playing significant roles. Recycling is expected to contribute over 40% by 2040.

Global Cathode Material Demand, By Material, 2023 (Kiloton)

Cathode Materials Market Material
Source: Secondary & Primary Research and Prismane Consulting estimates
Lithium production, concentrated in Australia, Chile, China, and Argentina, has seen China's dominance due to control over processing technology. Australia cautiously approaches Chinese investments despite exporting lithium for processing. China's influence extends to Bolivia, where a consortium secured a USD 1 billion agreement for lithium carbonate facilities. Chinese companies invest in lithium mining projects in Argentina, further solidifying China's presence in the global lithium market.

In the cathode market, 2023 was marked by initial optimism and growth in the EV sector, but disruptions from COVID-19 impacted supply and demand. Cobalt demand exhibited annual growth of 13%, with total demand reaching 187 Kiloton. Battery applications constituted 72% of cobalt demand, underscoring its growing significance in the battery industry. Lithium production faced supply constraints despite strong demand from EVs.

Sectoral Growth and Policy Support

The EV sector has become the predominant consumer of cobalt and lithium, constituting 40% of total demand for both minerals. Cobalt demand from EVs increased by 33% in 2023, reaching 74 Kiloton. Global EV sales surpassed 3.8 million units, with battery electric vehicles (BEVs) contributing significantly. The EV penetration rate rose from 8% in 2021 to 13%, and sales are anticipated to reach 14 million units in 2023, representing a 35% year-on-year rise. Policy efforts and high oil prices may further boost EV sales.

Global Cathode Material Demand, By End Use 2032 (Kiloton)

Cathode Materials Market end use
Source: Secondary & Primary Research and Prismane Consulting estimates
Landmark EV policies align with climate ambitions, supporting a positive outlook for EV sales. According to the International Energy Agency, the global projection for the share of electric car sales is expected to reach 35% by 2030. China remains the largest market, capturing 40% of total sales, while the United States is set to double its market share to 20%. Europe is expected to maintain its 25% market share.

Recent Developments

In the start of 2023, POSCO FUTURE M approved an investment of about 500 million USD by 2025 for the construction of a high-nickel NCMA cathode production plant in Pohang. As per the company’s press release, the capacity of the high-nickel cathode plant will be 46 Kiloton.

EcoPro BM is set to increase its battery-grade cathode material capacity by spending approximately 500 million USD in South Korea and Canada. A South Korean company will spend to build two new factories in Pohang, which is expected to be on stream in 2024. 

SK On recently announced to establish a cathode materials production plant in Canada. SK On will form a JV with automaker Ford Motor and cathode producer EcoPro BM. The total investment of this project will be 1.2 billion USD.

LG Chem announced to invest over 3 billion USD in the US to build a 120 kilo tons/year cathode materials plant by 2026. The output of this plant will be primarily used for the domestic EV market.

LG Chem has formed a JV with Huayou Group to establish a Lithium Iron Phosphate (LFP) cathode plant in Morocco. The plant will have an annual capacity of 50 Kiloton, slated to start in 2026. This collaboration will also build a conversion plant to convert lithium concentrates to lithium for cathode materials. The company is also planning to set up a nickel processing plant and precursor plant in Indonesia.

Scope of Report 

The Cathode Materials report describes the global Cathode Materials market, with focus on the country, applications and other end-use scenarios. The study provides

Market Data & Forecast (Short-term and Long-term)
•  Demand Analysis
•  Demand Composition, by Battery Type, Material and End Use
•  Sales & Revenue
•  Pricing Analysis
•  Market Dynamics

Country Summaries & Product Review
•  Demand Balance 
•  Cathode Materials Market data in terms of volume and value for each end-use 
   at regional and country level
•  Cathode Materials Market analysis for Production, Capacity and Demand, at regional and country level
•  Historical, Current & Market Forecast
•  Macro-economic factors like GDP, Population and World Economic integration
•  Economic & Energy Outlook
•  Industry & Policy Developments 
•  End-use Industry / Applications Market 
•  Reasoning & Analysis
•  Insightful Commentary
•  Market Review
•  Comparative Analysis
•  Latest Trends and market developments
•  Key players
•  Strategic Issues and Recommendations
•  Business Opportunity Assessment

1.  Introduction
      •  Scope
      •  Market Coverage
          -  Battery Type
          -  Material
          -  End Use
          -  Regions
          -  Countries
      •  Years Considered
          -  Historical - 2016 – 2021
          -  Base - 2022
          -  Forecast Period - 2023 – 2032
      •  Research Methodology
          -  Approach
          -  Research Methodology
          -  Prismane Consulting Market Models
          -  Assumptions & Limitations
          -  Abbreviations & Definitions
          -  Conversion Factors
          -  Data Sources
2.  Market Synopsis 
      •  Market Evolution
      •  Demand Overview
      •  Industry Structure
      •  Strategic Issues
      •  End-use Trends
      •  Growth Forecast
3.  Economic & Energy Outlook
      •  GDP and Demographics
      •  Monetary & Fiscal Policies
      •  Crude Oil Production and prices
      •  Natural Gas
      •  Electricity Prices
4.  End-use Sector Performance
      •  Automotive
      •  Electrical & Electronics 
      •  Renewables
      •  Metallurgy
      •  Industrial
      •  Others
5.  Introduction to Cathode Materials and Market Overview 
      •  Product Description
      •  Grades & Properties
      •  Raw Material
      •  Manufacturing Process
      •  Environmental Issues
      •  Value Chain
      •  Applications
6.  Market Dynamics and Industry Trends 
      •  Market Dynamics 
          -  Drivers
          -  Restraints
          -  Opportunities
          -  Challenges
7.  Global Cathode Materials Demand Analysis, By Battery Type, By Material and By End Use (Volume, Value) (2016–2032)
      •  Strategic Issues
      •  Demand Analysis and Forecast (2016 – 2032)
          -  Demand
          -  Demand Growth Rate (%)
          -  Driving Force Analysis
      •  Global Cathode Materials Market, By Battery Type
          -  Lead-Acid
          -  Lithium-Ion
          -  Other Battery Types
      •  Global Cathode Materials Market, By Material
          -  Lithium Iron Phosphate
          -  Lithium Cobalt Oxide
          -  Lithium-Nickel Manganese Cobalt
          -  Lithium Manganese Oxide
          -  Lithium Nickel Cobalt Aluminium Oxide
          -  Lead Dioxide
          -  Others 
      •  Global Cathode Materials Market, By End Use
          -  Automotive
          -  Consumer Electronics
          -  Power Tools
          -  Energy Storage
          -  Others
8.  Demand Analysis and Market Review, By Region, By Country (Volume, Value), (2016– 2032)
      •  Strategic Issues
      •  Demand
      •  Demand Growth Rate (%)
      •  Cathode Materials Market, By Battery Type
      •  Cathode Materials Market, By Material
      •  Cathode Materials Market, By End-Use
Note: Demand Analysis has been provided for all major Regions / Countries as mentioned below. The demand (consumption) split by Battery Type, Material and End Use, has been provided for each of the countries/regions in Volume (Kilotons) and Value (USD Million).
      •  North America
         -  USA
         -  Canada
         -  Mexico
      •  Western Europe
         -  Germany
         -  France
         -  Italy
         -  United Kingdom
         -  Spain
         -  Rest of Western Europe
      •  Central & Eastern Europe
         -  Russia
         -  Poland
         -  Rest of Central & Eastern Europe
      •  Asia-Pacific
         -  China
         -  Japan
         -  India
         -  South Korea
         -  ASEAN
         -  Rest of Asia-Pacific
      •  Central & South America
         -  Brazil
         -  Rest of Central & South America
      •  Middle East & Africa
Note: CAGR will be calculated for all the applications to arrive at the regional/global demand growth for the forecast period (2023 – 2032)
9.  Pricing Analysis
      •  Average Cathode Materials Prices, USD/Kg
      •  Average Cathode Materials prices, by Country
      •  Average Cathode Materials prices, by Region
      •  Price Forecast
10.  Key Strategic Issues
11.  Business Opportunity Assessment 
      •  Market Attractiveness Assessment
      •  Prospective & Target Market Study
12.  Strategic Recommendation & Suggestions
13.  Company Analysis and Market Share Analysis
      •  Cathode Materials Manufacturers Profiles/ Company Analysis
         -  Basic Details
         - Headquarters, Key Markets
         -  Ownership
         -  Company Financial
         -  Manufacturing Bases
         -  Global Turnover
         -  Total Employee
         -  Product Portfolio / Services / Solutions
         -  Recent Developments
         -  Companies Covered
             -  Wanbao Mining Co.; Ltd
             -  Genfeng Lithium
             -  Tianqi Lithium
             -  Sociedad Química y Minera 
             -  Albemarle
             -  Pilbara Minerals
             -  Allkem
             -  Other Manufacturers
Note: This section includes company information, company financials, manufacturing bases, and operating regions. Company financials have been mentioned only for those companies where financials were available in SEC Filings, annual reports, or company websites. All the reported financials in this report are in U.S. Dollars. Financials reported in other currencies have been converted using average currency conversion rates. Company profiles may include manufacturers, suppliers, and distributors.
14.  Appendices
      •  Demand- Regions
      •  Demand-Countries

Scope of Report 

The Cathode Materials report describes the global Cathode Materials market, with focus on the country, applications and other end-use scenarios. The study provides

Market Data & Forecast (Short-term and Long-term)
•  Demand Analysis
•  Demand Composition, by Battery Type, Material and End Use
•  Sales & Revenue
•  Pricing Analysis
•  Market Dynamics

Country Summaries & Product Review
•  Demand Balance 
•  Cathode Materials Market data in terms of volume and value for each end-use 
   at regional and country level
•  Cathode Materials Market analysis for Production, Capacity and Demand, at regional and country level
•  Historical, Current & Market Forecast
•  Macro-economic factors like GDP, Population and World Economic integration
•  Economic & Energy Outlook
•  Industry & Policy Developments 
•  End-use Industry / Applications Market 
•  Reasoning & Analysis
•  Insightful Commentary
•  Market Review
•  Comparative Analysis
•  Latest Trends and market developments
•  Key players
•  Strategic Issues and Recommendations
•  Business Opportunity Assessment