Lithium-ion Battery Cathode Market

Lithium-ion Battery Cathode Market Outlook

The global lithium-ion battery cathode market is slated to touch an impressive valuation of nearly US$ 117 Bn by 2031, surging at a CAGR of 12% from 2021 to 2031. Increasing use of lithium-ion battery cathodes in energy storage systems, rising demand for electric vehicles, and growing industrialization worldwide are anticipated to drive lithium-ion battery cathode market growth over the coming years.

Key Points Covered in Lithium-ion Battery Cathode Industry Survey:

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Certifications and Compliance Requirements
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• COVID-19 Impact on Demand for Lithium-ion Battery Cathodes and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Lithium-ion Battery Cathodes from 2016 to 2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – a market research and competitive intelligence provider, over the last 5 years, the market expanded at a CAGR of 9% closing at a valuation of US$ 11 Bn in 2020.

Sales of lithium-ion battery cathodes have been on the rise since the past few years. Factors contributing to the growth of market for lithium-ion battery cathodes are recent developments in battery technologies, adoption of lithium-ion battery cathodes in electric vehicles, and development of lithium-ion batteries for next-generation consumer electronic products & services, namely medical wearables.

Their fast-charging and lower self-discharge rate has retained the popularity of lithium-ion battery cathodes as compared to other rechargeable batteries; manufacturers are constantly improving the performance characteristics and increasing production of lithium-ion battery cathodes amidst the rising emergence of economical alternatives.

Will Cost-efficiency and Reliability of Lithium-ion Batteries Drive Market Growth?

Manufacturers and research organizations in the global market are likely to improve their focus on developing innovative ways to improve the cost-efficiency and reliability of li-ion batteries.

For instance, researchers at the Dallas University announced that they are developing an innovative lithium-air battery technology to make use of oxygen as an oxidizer, which can improve the life cycle of the battery while reducing its production cost to make it nearly 5 times cheaper.

The next area of innovation for the batteries is grid-scale battery installations to improve their energy storage capability. This can lead to improving the energy density of li-ion batteries in comparison to other rechargeable batteries, which ultimately translates into reduced weight and size and improved energy storing capability of li-ion batteries.

This will further nudge the growth of the li-ion battery cathode market over the years to come.

Which are the Key Challenges Besetting the Growth of the Lithium-ion Battery Cathode Market?

Low competency in terms of excessive heat tolerance will remain the key restraint paling the high popularity of lithium-ion battery cathode, which incites manufacturers to foster innovation in the landscape and move the quality gradient of the lithium-ion battery cathodes to higher scales.

Manufacturers of li-sulfur batteries, however, are likely to claim a share in sales, solely closed by lithium-ion batteries, in view of their lighter weight, lower costs, and capability to store twofold energy, when compared to li-ion batteries.

The production of lithium-ion battery cathodes relies on a streamlined supply of raw minerals and processed functional materials. However, depletion of mineral reserves in countries, namely India, the Philippines, Vietnam, Mexico, Argentina, and Indonesia, is likely to deter growth of the market.

Why is Demand for Electric Car Lithium-ion Battery Cathodes Rising in the Market?

Automotive li-ion batteries are a source of power for electric vehicles. The widespread use of lithium-ion batteries in electric vehicles (EVs) and application in plug-in hybrid electric vehicles (PHEVs) has inevitably boosted their adoption, which is expected to increase further in the future.

Growing adoption of electric vehicles among consumers has helped boost the market for these energy-saving, pollution-reducing vehicles. The number of electric vehicles is constantly increasing, owing to advantages aligned with them, namely, less need to maintain the vehicle engine, reduced use of hazardous oil waste, and reduction in pollution caused by fuel combustion engines, along with the development of improved battery technologies.

Electric vehicles are perceived as the future of the automobile industry and transportation systems, their increased adoption will eventually increase the demand for lithium-ion car battery cathodes over the coming years.

What are the Regional Market Insights for Lithium-ion Battery Cathodes?

The market in Asia Pacific accounted for the highest revenue share in 2020, and is expected to continue its dominance over the forecast period. Rising demand for batteries in consumer electronics and industrial applications is the major factor driving demand for lithium-ion battery cathodes in Asia Pacific. In addition, increasing production of lithium batteries in the region to reduce cost is expected to drive market growth over the coming years.

North America and Asia Pacific are major vehicle producers that provide a lucrative opportunity for market growth owing to their increasing demand in the automotive industry. Growing application in electric vehicles and advancements in battery technology are expected to drive demand for cathodes in the said regions over the forecast period.

Furthermore, increasing focus on electric vehicles has led battery manufacturers to invest in research & development, which is likely to have a positive impact on the lithium-ion battery cathode material market.

Country-wise Analysis

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

China plays a critical role in the electronics manufacturing industry. It accounts for 27% of the world’s smartphone market. Also, China is a battery manufacturing powerhouse in the world, making the APEJ a leader in the global li-ion battery market.

Owing to these factors, the market in China is expected to hold dominance across the assessment period.

Category-wise Analysis

Why are Cylindrical Lithium-Ion Battery Cathodes Preferred Over Others?

Cylindrical cells used in the lithium-ion battery cathodes are likely to remain the preferred cell type over their equivalents, as they radiate heat and thus have better control over temperature.

Cylindrical cells have tightly-wounded metal-encased electrodes, which control the tattering of electrode material due to mechanical vibrations, making them suitable for lithium-ion battery cathodes. In addition, they weigh lesser than their equivalents, which marks them ideal for integration in a majority of bestselling consumer electronics.

These factors will create growth opportunities for manufacturers of cylindrical cell lithium-ion battery cathodes.

Why are 10,000–60,000 MAh Lithium-ion Batteries Expected to Contribute the Largest Market Share?

The 10,000–60,000 MAh segment accounted for the largest market share in 2020.

Li-ion batteries with a capacity of more than 10,000 mAh are used for applications requiring high capacity, namely electric vehicles, plug-in hybrid electric vehicles, e-motorcycles, material handling equipment, marine, robots, industrial, telecommunication systems, electronic cash registers, standby power supplies, golf cart vehicles, hybrid trucks, buses, smart grid, aviation industry, automated guided vehicle, yachts, solar backup power, energy storage system (ESS) platforms, military applications, low earth orbit (LEO), medium earth orbit (MEO), and geostationary or geosynchronous orbit (GEO) satellites, and launch vehicles.

Owing to these factors, 10,000–60,000 MAh lithium-ion battery market share is expected to flourish over the coming years.

Will the Automotive Segment Lead Market Growth Over Coming Years?

The automotive segment is expected to hold the largest share in the market during the forecast period. Demand for lithium-ion batteries in e-bikes manufacturing and automated guided vehicles are propelling market growth.

Depending on their source of power and application, electric vehicles are classified into battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs).

Increasing adoption and awareness of electric vehicles supports the growth of this segment.

Competitive Landscape

The lithium-ion battery cathode market operates amid a high degree of consolidation, with only a handful of players operating in the top tier. Leading players accounting for around 50% of the total lithium-ion battery cathode market include Umicore SA, BASF SE, and Sumitomo Chemicals.

Leading players operating in the market continue to exploit strategic merger and acquisition activities to broaden their exposure in overseas territories. While these players continue to strenuously focus on expansion of their production capacities, new investments will remain of paramount importance for them.

Some of the key developments are:

• In May 2021, CATL and Daimler Truck AG announced the intensification of their existing partnership based on their shared vision of CO2-neutral electrified trucking. CATL will be the supplier of lithium-ion battery packs for the Mercedes-Benz eActros LongHaul battery-electric truck, which is planned to be ready for series production in 2024.
• In December 2020, GS Yuasa Corporation announced the launch of its LIM30HL series of industrial lithium-ion battery modules. The battery modules in the LIM30HL series, while retaining the same dimensions as those of the existing LIM25H series, are upwardly compatible and feature a higher rated capacity and lower internal resistance.

Lithium-ion Battery Cathode Market Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Europe Asia Pacific Central & South America Middle East & Africa
Key Countries Covered	USA Canada Germany France the UK Russia Italy China Japan South Korea India Australia  Middle East Latin America
Key Market Segments Covered	Cell Type Battery Type Capacity Voltage Industry Region
Key Companies Profiled	BYD Company LG Chem Contemporary Amperex Technology Co. Ltd. Samsung SDI Panasonic Corporation BAK Group GS Yuasa Corporation Hitachi Clarios Toshiba Corporation
Pricing	Available upon Request

Key Segments Covered in Lithium-ion Battery Cathode Industry Research

• By Cell Type

  • Cylindrical Cell Lithium-ion Battery Cathodes
  • Prismatic Cell Lithium-ion Battery Cathodes
  • Polymer Cell Lithium-ion Battery Cathodes

• By Battery Type

  • Lithium 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 Lithium-ion Battery Cathodes (Below 12V)
  • Medium Voltage Lithium-ion Battery Cathodes (12V – 36V)
  • High Voltage Lithium-ion Battery Cathodes (Above 36V)

• By Industry

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