Global Cathode Materials Market Insights Forecasts to 2032

• The Cathode Materials Market Size was valued at USD 20.7 Billion in 2022.
• The Market is Growing at a CAGR of 7.7% from 2022 to 2032
• The Worldwide Cathode Materials Market Size is expected to reach USD 35.2 Billion by 2032
• North America is expected to grow the fastest during the forecast period

The Global Cathode Materials Market Size is expected to reach USD 35.2 Billion by 2032, at a CAGR of 7.7% during the forecast period 2022 to 2032.

In numerous electrochemical systems, including batteries and fuel cells, cathode materials play a key role. They are crucial parts that use reversible redox processes to store and release electrical energy. The characteristics of the cathode materials utilised have a significant impact on how well these devices work. The cathode in rechargeable batteries is where the reduction process happens during discharge and where the oxidation reaction happens while charging. The capacity, energy density, cycle life, and general performance of the battery are substantially influenced by the cathode material selected.

Impact of COVID 19 On Global Cathode Materials Market

The pandemic affected the production and distribution of raw materials and parts needed for battery manufacturing, particularly cathode materials, and disrupted worldwide supply networks. Delays and shortages were caused by restrictions on transportation and temporary closures of production facilities. The epidemic diminished economic activity, which in turn affected consumer spending and the market for goods like consumer electronics and electric cars. The demand for the cathode materials employed in these applications was subsequently impacted. The pandemic caused certain industries to reassess their objectives. As an illustration, the automotive sector, which includes producers of electric vehicles, momentarily slowed down production to adjust to declining demand and supply chain difficulties. Lockdowns, social segregation policies, and labour shortages in different areas caused production to slow down or cause battery and component manufacturing plants to temporarily close. This had an impact on battery production as a whole, which in turn affected the need for cathode materials.

Key Market Drivers

The market for cathode materials was significantly influenced by the quick uptake of electric vehicles. The majority of EVs use lithium-ion batteries, and cathode materials have a significant impact on battery performance, energy density, and range. The demand for consumer gadgets that use lithium-ion batteries has risen, including those for smartphones, laptops, tablets, and other devices. For these devices to operate more efficiently and with higher energy density, cathode materials are crucial. Energy storage technologies have become more necessary as a result of the growth of renewable energy sources like solar and wind. Batteries made of cathode materials are essential for storing extra energy produced by renewable sources so that it can be used when demand is at its highest. A favourable environment for the development of energy storage technologies was created by the global shift towards cleaner and more sustainable energy sources, which increased the need for cathode materials.

Key Market Challenges

Numerous cathode materials, like those based on cobalt and nickel, are dependent on scarce and occasionally politically delicate resources. It can be difficult to find a reliable and cost-effective source of these materials. Complexity is also increased by worries about moral mining methods and the effects of resource extraction on the environment. The overall cost of manufacturing batteries is significantly influenced by the price of cathode materials. The economic viability of battery technologies can be impacted by the price volatility of components like cobalt and lithium. Cost-cutting without sacrificing performance is a never-ending task. Cathode materials may deteriorate after numerous charge and discharge cycles, which lowers battery capacity and overall performance. It can be difficult to extend the cycle life of cathode materials and keep the energy density high.

Market Segmentation

Battery Type Insights

Lead Acid battery segment is dominating the market over the forecast period

On the basis of battery type, the global cathode materials market is segmented into Lead-Acid, Lithium-Ion, and Others. Among these, the lead acid battery segment is dominating the market over the forecast period. Automotive starting batteries, uninterruptible power supplies (UPS), backup power systems, and some renewable energy storage applications are just a few examples of the many uses for lead-acid batteries. These batteries have been around for more than a century and are renowned for their dependability, affordability, and toughness. 

Materials Insights

Lead dioxide segment holds the highest market share over the forecast period

Based on the materials, the global cathode materials market is segmented into Lithium Iron Phosphate, Lithium Cobalt Oxide, Lithium-Nickel Manganese Cobalt, Lead Dioxide, and Others. Among these, the lead dioxide segment holds the highest market share over the forecast period. It performs the role of the positive electrode in lead-acid batteries, which are frequently utilised for stationary energy storage, backup power, stationary energy storage, and other purposes. But rather than the larger cathode materials industry linked to cutting-edge battery technologies like lithium-ion, the expansion of the lead dioxide category is more closely related to the lead-acid battery business.  Lead-acid batteries are employed in stationary energy storage systems for renewable energy storage, backup power systems, and uninterruptible power supplies (UPS). The demand for lead-acid batteries may be influenced by the expansion of renewable energy installations and the requirement for dependable backup power.

Application Insights

Automotive segment dominates the market over the forecast period

On the basis of application, the global cathode materials market is segmented into Automotive, Consumer Electronics, Power Tools, Energy System Storage, and Others. Among these, the automotive segment dominates the market over the forecast period. Environmental concerns and government incentives have fueled the shift towards electric automobiles, which has been a key growth driver. EVs rely on cutting-edge battery technology like lithium-ion batteries, whose performance and energy density are greatly influenced by the cathode materials used. Cathode materials have advanced as a result of research and development initiatives focused at enhancing battery efficiency, energy density, and overall performance. The development of new materials, such as nickel-rich cathodes (NMC, NCA), has allowed electric vehicles to have higher energy densities and longer ranges. Consumer trust in EVs has improved due to the growth of the charging infrastructure, which has led to an increase in their adoption. Many automakers have pledged to expand their lineup of electric and hybrid vehicles as part of their efforts to electrify their product lines. The need for batteries has been fueled by this dedication.

Regional Insights

Asia Pacific region is dominating the market over the forecast period

Asia Pacific region is dominating the market with the largest market share over the forecast period. The Asia-Pacific area is a significant centre for the production of batteries, particularly in nations like China, South Korea, and Japan. The rising demand for lithium-ion batteries in consumer gadgets, energy storage systems, and electric cars is the primary driver of this. With China being one of the world's largest markets for electric vehicles, the adoption of these vehicles has increased significantly in the region. As a result, there is now a large need for cathode materials used to make batteries for these cars. Including cathode materials, the region has a well-established supply chain for battery components. The region's leadership in battery manufacturing is largely due to this integrated supply chain, which runs from raw materials through completed battery products. Another significant consumer electronics market that fuels the need for portable devices is Asia-Pacific.

North America is witnessing the fastest market growth over the forecast period. The adoption of electric vehicles has been steadily increasing throughout North America, especially in the United States. The introduction of electric and hybrid vehicles by major automakers has increased the need for cathode materials for EV batteries. In order to encourage the use of electric vehicles and lower greenhouse gas emissions, some states and the federal government of North America have implemented regulations and incentives. These rewards may encourage the market for cathode materials to expand. Energy storage technologies are becoming more popular in North America for grid stability, integrating renewable energy sources, and backup power applications. The need for cathode materials is fueled by the dependence of energy storage systems on cutting-edge battery technologies.

Recent Market Developments

• In March 2022, Ascend Elements will recycle the production waste from the lithium battery Giga plants owned by SK Innovation in Georgia.

List of Key Companies

• Ascend elements Inc
• BASF SE
• Johnson Matthey plc
• LG Chem Ltd.
• Mitsubishi Chemical Corporation
• NEI Corporation
• POSCO
• Showa Denko Materials Co., Ltd.
• Sumitomo Metal Mining Co., Ltd
• Umicore N.V.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2032. Spherical Insights has segmented the global Cathode Materials Market based on the below-mentioned segments:

Cathode Materials Market, Battery Type Analysis

• Lead-Acid
• Lithium-Ion
• Others

Cathode Materials Market, Materials Analysis

• Lithium Iron Phosphate
• Lithium Cobalt Oxide
• Lithium-Nickel Manganese Cobalt
• Lead Dioxide
• Others

Cathode Materials Market, Application Analysis

• Automotive
• Consumer Electronics
• Power Tools
• Energy System Storage
• Others

Cathode Materials Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa