Electric Vehicle Battery Cathode Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 12.10 Billion |
| Market Size (2029) | USD 24.60 Billion |
| CAGR (2024 - 2029) | 15.25 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Electric Vehicle Battery Cathode Market Analysis
The Electric Vehicle Battery Cathode Market size is estimated at USD 12.10 billion in 2024, and is expected to reach USD 24.60 billion by 2029, growing at a CAGR of 15.25% during the forecast period (2024-2029).
- Over the medium period, the growing adoption of electric vehicles and the decreasing price of lithium-ion batteries are expected to drive the market during the forecast period.
- On the other hand, the supply chain gap in battery materials created by the monopoly of some countries is expected to restrain market growth in the future.
- However, the ongoing research and advancement in cathode material and efficient electrolytes 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.
Electric Vehicle Battery Cathode Market Trends
The Lithium-ion Battery Segment to Dominate the Market
- Lithium-ion batteries have emerged as the most commonly used battery technology in electric vehicles. This is due to their advantages, such as high energy density, relatively long cycle life, and efficiency.
- According to the International Energy Agency, demand for EV batteries reached more than 750 GWh in 2023, up 40% relative to 2022. Most of these batteries use lithium-ion technology. As the use of lithium-ion batteries in electric vehicles expands, the demand for cathode materials for lithium-ion battery technology is also expected to increase.
- According to the International Energy Agency, the share of electric vehicle sales is expected to increase to around 35% by 2030. Hence, in order to meet lithium-ion battery demand, the European Union is expected to increase its lithium-ion battery manufacturing capacity to 550 GWh by 2030.
- Additionally, the decreasing price of lithium-ion batteries is expected to drive the use of this technology in electric vehicles, which, in turn, will boost the demand for the use of cathode material of lithium-ion technology. In 2023, the price of lithium-ion battery packs decreased by 14% compared to the previous year to USD139/kWh.
- Further, in the future, as research and development continue to use materials other than nickel and cobalt in cathode material, as they are rare and affect supply chain reliability, the demand for battery cathodes of lithium-ion technology is expected to increase.
- For instance, in November 2023, Toshiba Corporation developed a new lithium-ion battery featuring a cobalt-free 5V-class high-potential cathode material. This innovation plays a crucial role in suppressing the production of performance-degrading gases typically generated as side reactions.
- Thus, owing to the increasing use of lithium-ion batteries in electric vehicles and technological developments, the lithium-ion battery cathode segment is expected to grow significantly during the forecast period.
North America is Expected to Have a Significant Share in the Market
- The North American electric vehicle market is majorly driven by the five major players, accounting for more than 70% of the market in 2023. These prominent players include Tesla, Toyota Group, Ford Group, Hyundai, and Honda. Tesla is the highest seller of electric vehicles in North American countries. As the demand for electric vehicles increases, the use of batteries in these vehicles will also increase, thereby driving the electric vehicle battery cathode market.
- The demand for electric vehicles is increasing continuously in North America. According to the Energy Information Administration, the combined sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEV) in the United States rose to 16.3% of total new light-duty vehicle (LDV) sales in 2023, which was 12.9% in the previous year.
- Further, supportive government policies are affecting the demand for electric vehicle batteries, thereby affecting the demand for the electric vehicle battery cathode market. Governments across North America have been rolling out policies and incentives to spur EV adoption. These initiatives encompass tax credits, grants, rebates, and investments in charging infrastructure. Such support has bolstered consumer interest in EVs, driving the demand for battery cathode.
- Also, the countries in the region have set multiple targets for electric vehicles (EVs). For instance, the United States aims to have an electric vehicle share of around 35% by 2032. Similarly, Canada aims to have 100% zero-emissions cars by 2035.
- Thus, with the growing number of electric vehicles, the region is expected to dominate the market during the forecast period.
Electric Vehicle Battery Cathode Industry Overview
The electric vehicle battery cathode market is semi-fragmented. Some of the major players in the market (in no particular order) include Nichia Corporation, BASF SE, Mitsubishi Chemical Group Corporation, Hitachi Chemical Company Ltd, and 3M Company.
Electric Vehicle Battery Cathode Market Leaders
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BASF SE
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Mitsubishi Chemical Group Corporation
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Hitachi Chemical Company Ltd
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3M Company
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Nichia Corporation
*Disclaimer: Major Players sorted in no particular order
Electric Vehicle Battery Cathode Market News
- May 2024: Oregon State University chemistry researcher led a collaboration to spark a green battery revolution by showing that iron, instead of cobalt and nickel, can be used as a cathode material in lithium-ion batteries in electric vehicles.
- January 2024: MIT researchers developed a groundbreaking battery material set to transform electric vehicle power sources. This lithium-ion battery features an innovative organic material-based cathode, a departure from the conventional use of cobalt or nickel.
- November 2023: Sumitomo Metal, a major supplier of nickel-cobalt-aluminum (NCA) cathode materials to Panasonic for Tesla's electric vehicles, planned to boost its annual cathode production in Niihama, western Japan. The expansion aims to increase the current capacity of 60,000 metric tonnes by 24,000 tonnes, slated for completion by 2025.
Electric Vehicle Battery Cathode Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 The Growing Adoption of Electric Vehicles
4.5.1.2 Decreasing Price of Lithium-ion Batteries
4.5.2 Restraints
4.5.2.1 The Supply Chain Gap
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Investment Analysis
5. MARKET SEGMENTATION
5.1 Technology
5.1.1 Lithium-ion
5.1.2 Lead-acid
5.1.3 Other Technologies
5.2 Material Type
5.2.1 Lithium Iron Phosphate
5.2.2 Lithium Cobalt Oxide
5.2.3 Lithium Manganese Oxide
5.2.4 Lead Dioxide
5.2.5 Other Materials
5.3 Geography [Market Size and Demand Forecast till 2029 (for regions only)]
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 France
5.3.2.3 United Kingdom
5.3.2.4 Italy
5.3.2.5 Spain
5.3.2.6 NORDIC
5.3.2.7 Russia
5.3.2.8 Turkey
5.3.2.9 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Australia
5.3.3.4 Japan
5.3.3.5 South Korea
5.3.3.6 Malaysia
5.3.3.7 Thailand
5.3.3.8 Indonesia
5.3.3.9 Vietnam
5.3.3.10 Rest of Asia-Pacific
5.3.4 Middle East and Africa
5.3.4.1 Saudi Arabia
5.3.4.2 United Arab Emirates
5.3.4.3 Nigeria
5.3.4.4 Egypt
5.3.4.5 Qatar
5.3.4.6 South Africa
5.3.4.7 Rest of Middle East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Colombia
5.3.5.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 NICHIA CORPORATION
6.3.2 BASF SE
6.3.3 Mitsubishi Chemical Group Corporation
6.3.4 Hitachi Chemical Company Ltd
6.3.5 3M Company
6.3.6 Panasonic Corporation
6.3.7 Toshiba Corporation
6.3.8 Umicore
6.3.9 NEI Corporation
6.3.10 Johnson Matthey PLC
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Ongoing Research and Advancement in Cathode Material and Efficient Electrolytes
Electric Vehicle Battery Cathode Industry Segmentation
The cathode in electric vehicle (EV) batteries is one of the two electrodes where reduction reactions occur during discharge when the battery provides power. It plays a crucial role in determining the performance characteristics of the battery, including energy density, power density, cycle life, and safety.
The electric vehicle battery cathode market is segmented by technology, material type, and geography. By technology, the market is segmented into lithium-ion, lead-acid, and other technologies. By material type, the market is segmented into lithium cobalt oxide (LCO), lithium iron phosphate (LPF), and nickel cobalt aluminum (NCA)). The report also covers the market size and forecasts for the electric vehicle battery cathode market across major regions. The report offers the market size in value (USD) for all the above segments.
| Technology | |
| Lithium-ion | |
| Lead-acid | |
| Other Technologies |
| Material Type | |
| Lithium Iron Phosphate | |
| Lithium Cobalt Oxide | |
| Lithium Manganese Oxide | |
| Lead Dioxide | |
| Other Materials |
| Geography [Market Size and Demand Forecast till 2029 (for regions only)] | ||||||||||||
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Electric Vehicle Battery Cathode Market Research FAQs
How big is the Electric Vehicle Battery Cathode Market?
The Electric Vehicle Battery Cathode Market size is expected to reach USD 12.10 billion in 2024 and grow at a CAGR of 15.25% to reach USD 24.60 billion by 2029.
What is the current Electric Vehicle Battery Cathode Market size?
In 2024, the Electric Vehicle Battery Cathode Market size is expected to reach USD 12.10 billion.
Who are the key players in Electric Vehicle Battery Cathode Market?
BASF SE, Mitsubishi Chemical Group Corporation, Hitachi Chemical Company Ltd, 3M Company and Nichia Corporation are the major companies operating in the Electric Vehicle Battery Cathode Market.
Which is the fastest growing region in Electric Vehicle Battery Cathode Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Electric Vehicle Battery Cathode Market?
In 2024, the North America accounts for the largest market share in Electric Vehicle Battery Cathode Market.
What years does this Electric Vehicle Battery Cathode Market cover, and what was the market size in 2023?
In 2023, the Electric Vehicle Battery Cathode Market size was estimated at USD 10.25 billion. The report covers the Electric Vehicle Battery Cathode Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Electric Vehicle Battery Cathode Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Electric Vehicle Battery Cathode Industry Report
Statistics for the 2024 Electric Vehicle Battery Cathode market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Electric Vehicle Battery Cathode analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
