Lithium-ion Battery Cathode Market

Lithium-ion Battery Cathode Market Growth Outlook (2023 to 2033)

Based on the analysis by Fact.MR, the global lithium-ion battery cathode market is valued to be US$ 47.3 billion in 2023 and it is expected to grow at a CAGR of 12.0% to reach US$ 146.8 billion by the end of 2033.

The market for lithium-ion battery cathodes has witnessed significant growth in recent years, due to the increasing adoption of lithium-ion batteries in various industries. The advantages of lithium-ion batteries, such as high energy density, longer cycle life, and lightweight design, have made them the preferred choice for portable electronics and electric vehicles, among other applications.

Report Attributes	Details
Lithium-ion Battery Cathode Market Size (2022A)	US$ 42.2 Billion
Estimated Market Value (2023E)	US$ 47.3 Billion
Forecasted Market Value (2033F)	US$ 146.8 Billion
Global Market Growth Rate (2023-2033)	12.0% CAGR
Key Companies Profiled	BAK Group Hitachi LG Chem Panasonic Corporation Samsung SDI Toshiba Corporation

Historic and Future Pathway Analysis for the Lithium-ion Battery Cathode Market

The lithium-ion battery cathode market plays a crucial role in the production of lithium-ion batteries, which are widely used in various applications ranging from portable electronics to electric vehicles and grid energy storage systems. The cathode is one of the key components of a lithium-ion battery, responsible for storing and releasing lithium ions during charge and discharge cycles.

• Short Term (2023-2026): The growing adoption of electric vehicles is a significant driver for the lithium-ion battery cathode market. EVs rely on lithium-ion batteries for their energy storage, and cathodes are a crucial component of these batteries. As the demand for EVs continues to rise due to environmental concerns and government incentives, the demand for lithium-ion battery cathodes also increases.
• Medium Term (2026-2029): The lithium-ion battery industry has witnessed significant advancements in cathode materials, improving energy density, safety, and overall performance. The development of new cathode materials, such as lithium iron phosphate (LFP) and lithium nickel manganese cobalt oxide (NMC), has expanded the range of applications for lithium-ion batteries.
• Long Term (2029-2033): Numerous governing bodies worldwide are implementing policies and regulations to promote the adoption of electric vehicles and renewable energy. These measures include subsidies, tax incentives, and stricter emission standards. Government support provides a favorable environment for the growth of the lithium-ion battery cathode market by boosting demand and encouraging technological advancements.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 12.0% CAGR between 2023 and 2033.

Market Dynamics Outlook

“Growing Medical Devices Industry to Fuel the Lithium-ion Battery Cathode Demand”

Medical devices often require compact and portable power sources to operate effectively. Lithium-ion batteries are known for their high energy density, long cycle life, and rechargeable capabilities, making them an ideal choice for powering various medical devices.

Many medical devices, such as wearable health trackers, portable diagnostic tools, and insulin pumps, need to be lightweight and easily transportable. Lithium-ion batteries provide the necessary energy storage in a compact form factor, enabling the development of smaller and more portable medical devices.

Some medical devices, like pacemakers and neurostimulators, are implanted inside the human body. These devices require long-lasting and reliable power sources. Lithium-ion batteries offer high energy density and stability, allowing for extended battery life and reducing the need for frequent replacements or recharging.

The rise of remote patient monitoring and telemedicine has increased the demand for portable medical devices that can transmit data wirelessly. Lithium-ion batteries power these devices and ensure they remain operational for extended periods, enabling real-time data collection and communication between healthcare providers and patients.

Thus, the growing demand for electric devices drives the battery demand leading to the growth of the lithium-ion battery cathode market as it is a prominent part of the batteries for reaction and energy storage.

“Factors Besetting the Growth of the Lithium-ion Battery Cathode Market”

The low capability of excess heat tolerance remains the main limitation that reduces the high popularity of the Li-ion battery cathodes market.

Lithium-ion battery cathode production is based on the seamless supply of raw minerals and processed functional materials. Depletion of mineral resources in countries such as India, Vietnam, Mexico, Argentina, and others is likely to hinder market growth. Further, the high price of Li-ion batteries is expected to hamper the growth of the market during the forecast period.

Country-wise Insights

What is the Demand Outlook for Lithium-ion Battery Cathodes in China?

The demand for batteries in vehicles, particularly EVs, has experienced substantial growth in China, and this trend is expected to continue due to the government's push for cleaner and more sustainable transportation solutions.

• In 2022, the battery demand for vehicles in China grew by over 70%. This growth is primarily attributed to the increasing sales of electric cars, which saw an 80% increase compared to 2021, based on the data from the International Energy Agency (IEA).

The surge in electric car sales indicates a rising adoption of EVs in China as consumers and policymakers recognize the environmental benefits and long-term cost savings associated with electric mobility.

Lithium-ion batteries are the dominant power source for electric vehicles, and the cathode is a crucial component of these batteries. The cathode material, typically composed of lithium, cobalt, nickel, and other elements, plays a vital role in determining the battery's performance, energy density, and overall efficiency. As the demand for electric vehicles rises, so does the demand for high-quality lithium-ion battery cathodes.

Why are Sales of Lithium-ion Battery Cathode Rising in the U.S.?

The growing automobile industry in the US drives the lithium-ion battery cathode market. The data from IEA indicates that the growing electric vehicle (EV) market in the United States is driving the demand for lithium-ion battery cathodes.

• Despite electric car sales increasing by around 55% in 2022, battery demand for vehicles in the United States grew by approximately 80%.
• This significant increase in battery demand is due to the efforts made to increase the average battery size for battery electric cars in the United States by about 7% in 2022. This growth suggests that EV manufacturers are incorporating larger batteries into their vehicles to provide longer all-electric driving ranges.
• The average battery electric car battery size in the United States remains about 40% higher than the global average.

This disparity is attributed to the higher share of SUVs in US electric car sales relative to other major markets. SUVs generally have larger battery packs due to their higher energy requirements, contributing to the larger battery sizes in the US market.

Category-wise Insights

Why are Cylindrical Lithium-ion Battery Cathodes Preferred over Others?

Cylindrical cells used in Li-ion battery cathodes are expected to remain a superior cell type compared to similar batteries because they radiate heat and thus have better temperature regulation.

Cylindrical cells have tightly wound metal-sheathed electrodes that control the tearing of the electrode material from mechanical vibration, making them suitable for lithium-ion battery cathodes. In addition, they weigh less than their counterparts, making them ideal for integration with most of the best-selling consumer electronics.

These several factors are likely to create a plethora of opportunities for manufacturers of cylindrical lithium-ion battery cathodes to grow at an exponential rate.

How Does the Growing Automotive Industry Drive the Market Growth?

The growing automotive industry is a significant driver of the increasing demand for lithium-ion battery cathodes. In recent years, the automotive sector has witnessed a remarkable surge in the adoption of electric vehicles (EVs), leading to a substantial rise in the overall demand for lithium-ion batteries.

One of the key factors contributing to the surge in lithium-ion battery demand is the exponential growth of electric passenger car sales.

• According to the data from International Energy Agency (IEA), new registrations of electric passenger cars increased by 55% in 2022 compared to the previous year. This substantial growth signifies a significant shift in consumer preferences towards electric vehicles and a departure from traditional internal combustion engine (ICE) vehicles.

Electric vehicles rely heavily on lithium-ion batteries for their energy storage needs, and the cathode is a crucial component of these batteries. The cathode is responsible for storing and releasing lithium ions during charge and discharge cycles, making it a vital component for the overall performance and efficiency of the battery.

As the demand for electric vehicles continues to rise, automakers and battery manufacturers are faced with the need to produce more lithium-ion batteries to meet the market requirements. This, in turn, drives the demand for cathode materials, as they are a key component of lithium-ion batteries.

Eminent Players Key Stratagems

Prominent lithium-ion battery cathode manufacturers are BAK Group, Hitachi, LG Chem, Panasonic Corporation, Samsung SDI, and Toshiba Corporation

Major players in the market continue to use strategic mergers and acquisitions to expand their presence in overseas territories. Although global market players continue to focus strictly on increasing production capacity, making new investments remains a priority for them.

For instance :

• Commercial vehicle manufacturer Daimler Truck AG and lithium-ion battery manufacturer and developer Contemporary Amperex Technology Co. Limited (CATL) announced that they will deepen their existing partnership based on a shared vision of CO2-neutral electric truck transport. CATL supplies lithium-ion batteries for the Mercedes-Benz eActros LongHaul battery-electric vehicle, which is scheduled to enter series production in 2024. The supply extends beyond 2030.

Fact.MR has provided detailed information about the price points of key manufacturers of lithium-ion battery cathode positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Lithium-ion Battery Cathode Industry Research

• By Cell Type :

  • Cylindrical Cell
  • Prismatic Cell
  • Polymer Cell

• By Battery Type :

  • Nickel Manganese Cobalt Oxide Batteries
  • Lithium Iron Phosphate (LFP)
  • Cobalt Oxide Lithium-Ion Batteries
  • Lithium Titanate Oxide (LTO)
  • Lithium Manganese Oxide Batteries
  • Lithium Nickel Cobalt Aluminum Oxide Batteries

• By Capacity :

  • 0–3,000 mAh
  • 3,000–10,000 mAh
  • 10,000–60,000 mAh
  • 60,000 mAh and Above

• By Voltage :

  • Low Voltage (Below 12V)
  • Medium Voltage (12V – 36V)
  • High Voltage (Above 36V)

• By End-use Industry :

  • Consumer Electronics
  • Automotive
  • Aerospace
  • Marine
  • Medical
  • Industrial
  • Power
  • Telecommunication

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa