Nickel Hydroxide Market
Nickel Hydroxide Market Analysis by 2N, 2N5, 3N, 3N5, 4N, and 5N Nickel Hydroxide from 2023 to 2033
Analysis of Nickel Hydroxide Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Nickel Hydroxide Market Growth Outlook (2023 to 2033)
Based on the analysis by Fact.MR, the global nickel hydroxide market is valued to be US$ 3.4 billion in 2023 and it is expected to grow at a CAGR of 6.2% to reach US$ 6.2 billion by the end of 2033.
Nickel hydroxide is a crucial component in nickel-metal hydride (NiMH) batteries, which are widely used in various applications. NiMH batteries offer a relatively high energy density, good power output, and long cycle life. Nickel hydroxide enables these batteries to store and release energy efficiently during charging and discharging cycles, resulting in reliable battery performance.
Nickel Hydroxide Market Size (2022A)
US$ 3.2 Billion
Estimated Market Value (2023E)
US$ 3.4 Billion
Forecasted Market Value (2033F)
US$ 6.2 Billion
Global Market Growth Rate (2023-2033)
North America Market Share (2023)
East Asia Market Share (2033)
Key Companies Profiled
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Historic and Future Pathway Analysis for the Nickel Hydroxide Market
With the growing shift towards electric mobility, demand for nickel hydroxide is surging. Additionally, compared to other rechargeable battery technologies, such as lithium-ion batteries, NiMH batteries incorporating nickel hydroxide are generally more cost-effective. Nickel is abundantly available and relatively low in cost compared to other battery materials. This makes NiMH batteries an attractive option, particularly in applications where cost plays a significant role, such as in hybrid electric vehicles (HEVs), thus, driving the nickel hydroxide market growth.
- Short Term (2023-2026): The growing adoption of EVs worldwide has a significant driver of the nickel hydroxide market. Nickel hydroxide is a crucial component in nickel-metal hydride (NiMH) batteries used in hybrid and electric vehicles. The push for cleaner transportation and government incentives to promote EVs have fueled the demand for nickel hydroxide in the coming years.
- Medium Term (2026-2029): With the growing consumer electronics market and government efforts to increase electric vehicle adoption is likely to pave the way for the nickel hydroxide market, especially across emerging economies such as China and India.
- Long Term (2029-2033): Efforts led by market players and price differentiating remain go-to strategies for market players and key growth factors for the market.
According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 6.2% CAGR between 2023 and 2033.
Market Dynamics Outlook
“Growing Government Interest towards Renewable Energy Drives Nickle Hydroxide Demand”
The renewable energy industry relies on energy storage systems to address intermittency and ensure a stable power supply. Nickel hydroxide is a vital component in energy storage technologies such as nickel-metal hydride (NiMH) batteries, which are used in grid-scale energy storage and residential energy storage solutions. As investment in renewable energy increases, the demand for energy storage systems grows, subsequently driving the demand for nickel hydroxide.
Governments worldwide are implementing incentives and policies to promote renewable energy generation and storage. These measures include feed-in tariffs, tax credits, and renewable energy targets. By creating a favorable regulatory environment, governments encourage investment in renewable energy projects, which subsequently boosts the demand for nickel hydroxide.
“Factors Affecting the Growth of the Market: Restrain”
Availability of alternatives such as solid-state batteries, lead-acid batteries, and lithium-ion batteries to restrain the steady growth of the nickel hydroxide market. Solid-state batteries have gained significant popularity and dominance in various applications, including electric vehicles and portable electronic devices, thus, witnessing growth.
However, the demand for nickel hydroxide is expected to rise as the production of lithium-ion batteries increases. This is primarily due to higher nickel content in newer battery chemistries, such as nickel-rich cathodes, which offer improved energy density and performance.
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Why the Demand for the Nickel Hydroxide is High in the U.S.?
The US is witnessing a significant increase in the adoption of electric vehicles. Nickel hydroxide is a key component of the cathode material used in lithium-ion batteries, which are widely used in EVs. The growth of the EV market has led to a surge in demand for nickel hydroxide as a raw material for battery production.
The US is also promoting the development and deployment of renewable energy sources, such as solar and wind power. To effectively store and utilize renewable energy, energy storage systems are essential. Lithium-ion batteries, which rely on nickel hydroxide in their cathode, are commonly used for energy storage applications. The demand for such batteries in the US for renewable energy storage contributes to the demand for nickel hydroxide.
How is China Faring in the Market for Nickel Hydroxide?
China has emerged as a global manufacturing hub for consumer electronics. Many international brands outsource their manufacturing to China, and the country also has several domestic electronic manufacturers. This robust manufacturing ecosystem fuels the demand for nickel hydroxide as Chinese manufacturers produce batteries for both domestic consumption and export.
Further, the Chinese government has implemented policies to support the growth of the consumer electronics industry. These policies include subsidies for the purchase of electronic devices, incentives for domestic manufacturing, and investments in research and development. Such government support stimulates the demand for consumer electronics and subsequently boosts the demand for nickel hydroxide.
How Does Automotive Industry Growth Drive Nickel Hydroxide Market Growth?
The automobile industry is poised to remain one of the primary reasons for the growth of nickel hydroxide demand growth, with a substantial number of vehicle manufacturers shifting to hybrid electric vehicle versions of their existing IC engine vehicles.
The rise in the overall number of electric vehicles driving market growth as nickel hydroxide is used as a raw material in lithium-ion batteries. The surging investment in electrification is indicative of the fact that consumers are eager to receive electric vehicles and shift to a greener alternative which represented more than 65% of the overall end-user investment in the transport sector in 2021.
In 2021, several auto manufacturers declared their ambition to achieve a fully electric future.
For instance :
- Toyota announced 3.5 million annual electric car sales by 2030
- Ford announced one-third of sales to be fully electric by 2026 and 50% by 2030, with all-electric sales in Europe by 2030
- BMW announced 50% of vehicles sold to be fully electric by 2030 or earlier
- Volvo becomes a fully electric car company by 2030
- Mercedes announced all newly launched vehicles will be fully electric by 2025
All the above-aforementioned factors will push the growth of the automobile industry and subsequently, lead to an increase in the demand for nickel hydroxide in the coming year.
How Electroplating Drives Nickel Hydroxide Market Growth?
Nickel is known for its excellent corrosion resistance properties. Electroplating with nickel hydroxide allows for the formation of a protective layer of nickel on the surface of various metals, providing enhanced corrosion resistance. This makes it a preferred choice for coating components in industries such as automotive, aerospace, and manufacturing, where protection against corrosion is crucial.
Additionally, electroplated nickel coatings offer a lustrous and attractive finish. It provides a bright, reflective surface that enhances the aesthetic appeal of various consumer products, such as jewelry, kitchenware, and decorative items. The demand for electroplated nickel in these applications drives the need for nickel hydroxide.
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Eminent Players Key Stratagems
Prominent nickel hydroxide manufacturers are American Elements, GFS Chemicals, Kansai Catalyst Co, Ltd., Norn Nickel, Sumitomo Metal Mining, Tanaka Chemicals, and Umicore
Companies pursue geographic expansion by entering new markets or strengthening their presence in existing ones. This involves establishing distribution networks, opening regional offices or subsidiaries, and partnering with local distributors to cater to the demand in different regions.
Additionally, mergers, acquisitions, and strategic partnerships can provide companies with access to new technologies, markets, or resources. Key players are acquiring or collaborating with other companies involved in nickel hydroxide production or related sectors to gain a competitive edge and expand their market reach.
For instance :
- Umicore and PowerCo, the new battery company of the Volkswagen Group, obtained full regulatory approvals for their joint venture announced in September 2022. The partners can now swiftly proceed to prepare for large-scale industrial production of cathode active materials (CAM) and precursor materials (PCAM) in Europe.
- In July 2021, Japan’s Sumitomo invested US$ 424 m to boost battery materials production. By 2027, the firm plans to reach cathode materials production capacity of 10,000 tonnes per month.
Fact.MR has provided detailed information about the price points of key manufacturers of nickel hydroxide positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.
Segmentation of Nickel Hydroxide Industry Research
By Purity :
By Form :
By Application :
By End-use Industry :
By Region :
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
What was the Global Nickel Hydroxide Market Size Reported by Fact.MR for 2022?
The global nickel hydroxide market size reported by Fact.MR for 2022 was US$ 3.2 billion.
What is the Global Nickel Hydroxide Market Estimated to reach in 2033?
The global nickel hydroxide market size is estimated to reach US$ 6.2 billion in 2033.
What is the Projected CAGR for the Nickel Hydroxide Market from 2023 to 2033?
The projected CAGR for the global nickel hydroxide market from 2023 to 2033 will be 6.2%.
Who are the Major Players in the Nickel Hydroxide Market?
Market players include Sumitomo Metal Mining, Tanaka Chemicals, and Umicore, Which are majorly operating and dominating in the market.