| Study Period | 2019 - 2030 |
| Market Volume (2025) | 3.12 Million metric tons |
| Market Volume (2030) | 9.42 Million metric tons |
| CAGR | 24.74 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Cathode Material Market Analysis
The Cathode Material Market size is estimated at 3.12 Billion kilotons in 2025, and is expected to reach 9.42 Billion kilotons by 2030, at a CAGR of 24.74% during the forecast period (2025-2030).
The COVID-19 pandemic impacted the global cathode materials market. The pandemic caused global supply chain disruptions, leading to delays in producing and delivering raw materials required for cathode materials, such as lithium, nickel, and cobalt. Nevertheless, in 2021, the industry showed signs of recovery and consequently increased its market demand again.
- The surging demand from the electric vehicle (EV) sector and growing demand from consumer electronics are some of the factors expected to drive the cathode materials market.
- On the flip side, safety issues with battery transportation and storage and challenges in battery recycling are expected to restrain the cathode materials market growth.
- However, batteries powering the future of renewable energy storage and innovations in cathode materials for battery sustainability may offer opportunities for market growth.
- Asia-Pacific dominates the market, owing to the growing application of cathode material in the automotive industry, which augments the demand for cathode material.
Cathode Material Market Trends
Automotive Industry to Dominate the Market
- Cathode materials in automotive batteries play a pivotal role in determining energy density, lifespan, safety, and cost. In recent years, lithium-ion batteries have dominated the landscape of new automobiles and electric vehicles.
- Various types of EV batteries employ distinct cathode chemistries, tailoring performance to the specific needs of the vehicle. For example:
- Premium electric vehicles predominantly utilize cathode materials like lithium cobalt aluminium oxide and Lithium-Nickel-Manganese-Cobalt-Oxide.
- Mid-range electric vehicles, including the Tesla Model 3, BYD, and Hyundai, utilize lithium iron phosphate cathode materials in their batteries.
- With countries worldwide witnessing a surge in electric vehicle demand, the appetite for electric vehicle batteries has similarly escalated.
- In response to this burgeoning demand, investments and government initiatives in electric vehicle battery manufacturing have surged. Recent notable government initiatives include:
- In December 2024, the Indian government unveiled a scheme worth INR 9000 crore (~USD 1,033.65 million) to bolster local manufacturing of battery components for electric vehicles and clean energy systems.
- In September 2024, Japan's government rolled out subsidies totaling USD 2.4 billion for electric vehicle battery production. According to Ken Saito, Japan's Minister of Economy, Trade and Industry, these funds will back 12 storage battery production projects.
- Additionally, in September 2024, the U.S. government declared a USD 3 billion investment plan to bolster domestic production of advanced batteries for electric vehicles. This move, aimed at curbing China's dominance in the sector, will support 25 projects across 14 states.
- These government pushes in electric vehicle battery production are poised to accelerate the consumption of various cathode materials in the coming years.
Understand The Key Trends Shaping This Market
Download PDF
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is home to countries like China, India, and Japan, which are among the largest and fastest-growing markets for electric vehicles and electronics products.
- China's leadership in electronics and battery production is propelling the country's cathode materials market. Simultaneously, the surge in consumer electronics production and escalating investments in electric vehicles (EVs) are amplifying the demand for cathode materials in China.
- China stands at the helm of the global electric vehicle (EV) and EV battery sectors. Chinese companies manufacture nearly two-thirds of the world's EVs and over three-quarters of EV batteries. They've also pioneered significant innovations in EV products, processes, and customer interactions.
- For example, while Chinese automakers accounted for 21 percent of global passenger vehicle production—projected to rise to 33 percent by 2030—they produced 62 percent of the world's EVs and 77 percent of EV batteries in 2022. Furthermore, from 2020 to 2023, China's global EV exports surged by 851 percent, with Europe receiving nearly 40 percent of those exports.
- Leading battery manufacturers in China, bolstered by their expanding capacities, are significantly driving up the demand for cathode materials. For instance, China Aviation Lithium Battery Co. (CALB) has set ambitious targets, aiming for a total annual capacity of 500 GWh by 2025 and a whopping 1,000 GWh by 2030. In a strategic move, CALB inked contracts in 2022 to establish production facilities in Guangdong, a southern province of China, collaborating with two additional cities.
- India's electronics production skyrocketed from USD 29 billion in 2014-15 to a remarkable USD 101 billion in 2022-23. Accounting for about 3.4% of the nation's GDP, the government has committed nearly USD 17 billion over the next six years, focusing on Semiconductor and Design, Smartphones, IT Hardware, and Components.
- The Electronics System Design & Manufacturing (ESDM) sector plays a crucial role in the government's goal of achieving USD 1 trillion in economic value from the digital economy by 2025. Driven by the various government initiatives, India is witnessing a surge in domestic manufacturing, highlighted by increased production and assembly of mobile phones and consumer electronics.
- In September 2024, Tata Group, via its clean energy arm Agratas, unveiled plans for a 20 GWh battery manufacturing facility in Sanand, Gujarat. Previously, Agratas teamed up with Tata Technologies to enhance product development and enterprise systems, bolstering the design and manufacturing of battery solutions.
- In December 2024, Lohum India, a frontrunner in lithium-ion battery recycling and critical material production, expanded its footprint into Andhra Pradesh and Telangana, inaugurating a 20,000 MT Cathode Active Material (CAM) manufacturing facility.
- Hence, with all such applications and robust demand in the region, Asia-Pacific is expected to be the largest market during the forecast period.
Get Analysis on Important Geographic Markets
Download PDF
Cathode Material Industry Overview
The cathode material market is moderately fragmented in nature, with a number of players operating in the market. Some of the major companies in the market (not in any particular order) include Shenzhen Dynanonic Co., Ltd ., LG Chem, Sumitomo Metal Mining Co. Ltd, POSCO FUTURE M, and Umicore, among others.
Cathode Material Market Leaders
-
Sumitomo Metal Mining Co., Ltd.
-
Umicore
-
Shenzhen Dynanonic Co., Ltd.
-
LG Chem
-
POSCO FUTURE M
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competiters?
Download PDF
Cathode Material Market News
- January 2025: ICL, a global leader in specialty minerals, has inked a joint venture agreement with Shenzhen Dynanonic Co., Ltd. The duo aims to set up lithium iron phosphate (LFP) cathode active material (CAM) production in Europe, with an investment of around EUR 285 million (~USD 296.8 million). Plans are underway for a new facility at ICL's site in Sallent, Spain, poised to bolster the company's battery materials division significantly.
- September 2024: LG Chem announced it has secured a supply of cathode active materials (CAM) for Prime Planet Energy & Solutions (PPES), a joint venture between Toyota Motor Corporation and Panasonic Corporation, which supplies EV batteries to global OEMs, including Toyota; as part of its global expansion, LG Chem will support PPES’s EV battery strategy by supplying CAM to its Japan plant starting in 2026.
- February 2024: POSCO Future M broke ground on its fifth cathode materials plant in Gwangyang, which will produce 52,500 tons of NCA cathode materials annually upon completion, contributing to the company’s goal of achieving a total cathode material production capacity of 345,000 tons by December 31, 2025.
Cathode Material Indsutry Segmentation
Cathode materials serve as the positive electrode in electrochemical devices like batteries, where they gain electrons during discharge. They significantly impact a battery’s energy density, voltage, and overall efficiency. Examples include lithium cobalt oxide (LiCoO₂), lithium iron phosphate (LiFePO₄), and nickel-manganese-cobalt (NMC) oxides, each offering unique trade-offs in capacity, stability, and cost.
The cathode material market is segmented by application, material, end-user industry, and geography. By application, the market is segmented into lead-acid battery, lithium-ion battery, and other battery types (Nickel-Cadmium (NiCd) Batteries, Nickel-Metal Hydride (NiMH) Batteries, Sodium-Sulfur (NaS) Batteries, Zinc-Carbon Batteries, Alkaline Batteries, Silver-Oxide Batteries, Lithium-sulfur batteries). By material, the market is segmented into lithium iron phosphate, lithium cobalt oxide, lithium-nickel manganese cobalt, lithium manganese oxide, lithium nickel cobalt aluminum oxide, lead dioxide, and other materials (sodium iron phosphate, oxyhydroxide, and graphite). By end-user industry, the market is segmented into automotive, consumer electronics, power tools, energy storage, and other applications (medical devices, aerospace, and other industrial applications). The report also covers the market size and forecasts for the cathode materials market in 18 countries across the major region. For each segment, the market sizing and forecasts are provided in terms of volume (tons).
| By Application | Lead Acid | ||
| Lithium Ion Battery | |||
| Other Battery Types | |||
| By Material | Lithium Iron Phosphate | ||
| Lithium Cobalt Oxide | |||
| Lithium Nickel Manganese Cobalt | |||
| Lithium Manganese Oxide | |||
| Lithium Nickel Cobalt Aluminium Oxide | |||
| Lead Dioxide | |||
| Other Materials | |||
| By End-user Industry | Automotive | ||
| Consumer Electronics | |||
| Power Tools | |||
| Energy Storage | |||
| Other End-user Industries | |||
| By Geography | Asia-Pacific | China | |
| India | |||
| Japan | |||
| South Korea | |||
| Malaysia | |||
| Thailand | |||
| Indonesia | |||
| Vietnam | |||
| Rest of Asia-Pacific | |||
| North America | United States | ||
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| Italy | |||
| France | |||
| Spain | |||
| NORDIC Countries | |||
| Turkey | |||
| Russia | |||
| Rest of Europe | |||
| Rest of the World | South America | ||
| Middle-East and Africa | |||
Need A Different Region or Segment?
Customize Now
Cathode Material Market Research Faqs
How big is the Cathode Material Market?
The Cathode Material Market size is expected to reach 3.12 million metric tons in 2025 and grow at a CAGR of 24.74% to reach 9.42 million metric tons by 2030.
What is the current Cathode Material Market size?
In 2025, the Cathode Material Market size is expected to reach 3.12 million metric tons.
Who are the key players in Cathode Material Market?
Sumitomo Metal Mining Co., Ltd., Umicore, Shenzhen Dynanonic Co., Ltd., LG Chem and POSCO FUTURE M are the major companies operating in the Cathode Material Market.
Which is the fastest growing region in Cathode Material Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2030).
Which region has the biggest share in Cathode Material Market?
In 2024, the Asia Pacific accounts for the largest market share in Cathode Material Market.
What years does this Cathode Material Market cover, and what was the market size in 2023?
In 2023, the Cathode Material Market size was estimated at 2.35 million metric tons. The report covers the Cathode Material Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Cathode Material Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Cathode Material Industry Report
Statistics for the 2024 Cathode Material market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cathode Material analysis includes a market forecast outlook for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
