Download Sample, Digitization and Electrification are Encouraging the Growth of the Lithium-Ion Battery Cathode Market
The need for portable, eco-friendly energy sources for use in the electrical, electronic, automotive, and even aerospace industries has resulted in constant research and innovation in lithium-ion battery technology. Lithium-ion batteries (LIBs) have become the greatest alternative for electrical energy storage for use in portable gadgets and electric vehicles as a result of current research and discoveries. This is due to the fact that LIBs already have a variety of advantageous characteristics, such as low weight, high energy density, small scale size, little memory effects, long cycle life, and low pollution. Lithium-ion batteries will also be the fuel of the future as the world moves towards electrification and digitization during the coming years.
Technological advancements in the cathode, which will allow for increased energy densities and also present prospects for cost reduction, will be a major factor in the development of next-generation lithium-ion batteries (LIBs). Businesses and researchers are focusing on improving the performance of these lithium-ion batteries by investing in the research of new materials that boost the power output and storage capacity of these batteries. For example, the Next Generation Lithium-ion Cathode Materials project, FutureCat, launched in 2019 was developed by the UK's Faraday Institution for electrochemical energy storage research, with the goal of improving the understanding of both currently used and recently found cathode chemistries.
Technological advancements in the cathode, which will allow for increased energy densities and also present prospects for cost reduction, will be a major factor in the development of next-generation lithium-ion batteries (LIBs). Businesses and researchers are focusing on improving the performance of these lithium-ion batteries by investing in the research of new materials that boost the power output and storage capacity of these batteries. For example, the Next Generation Lithium-ion Cathode Materials project, FutureCat, launched in 2019 was developed by the UK's Faraday Institution for electrochemical energy storage research, with the goal of improving the understanding of both currently used and recently found cathode chemistries.
Rising Adoption of EVs is Propelling the Market Development
Automobile lithium batteries serve as the power supply for electric cars. The use of lithium-ion batteries has unavoidably increased due to their extensive usage in electric vehicles (EVs) and use in plug-in hybrid electric vehicles (PHEVs), and this trend is anticipated to continue during the forecast period. The market for these energy-saving, pollution-reducing automobiles has been strengthened by consumers' increasing adoption of electric vehicles.
Due to benefits associated with them, such as less need for engine maintenance, less use of hazardous oil waste, and a decrease in pollution from fuel combustion engines, along with the advancement of better battery technologies, the number of electric vehicles is constantly rising. Additionally, electric vehicles are seen as the future of the auto industry and transportation networks, and as more of them are adopted, the demand for lithium-ion battery cathodes will increase over the forecast period.
Due to benefits associated with them, such as less need for engine maintenance, less use of hazardous oil waste, and a decrease in pollution from fuel combustion engines, along with the advancement of better battery technologies, the number of electric vehicles is constantly rising. Additionally, electric vehicles are seen as the future of the auto industry and transportation networks, and as more of them are adopted, the demand for lithium-ion battery cathodes will increase over the forecast period.
Recent Trends in the Lithium-Ion Battery Cathode Industry
- Cathode Innovations Boost Lithium-Ion Battery Performance.
- High-Energy Cathodes Fuel Growth in Lithium-Ion Batteries.
- Next-Generation Cathodes Extend Lithium-Ion Battery Lifespan.
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Technical Limitations, Safety Concerns & Government Regulations Pose Threat to the Market Growth
Due to the rising demand for lithium-ion battery cathodes, manufacturers are encouraged to promote innovation in the market and raise the quality gradient of these cathodes to higher scales. However, low competency in terms of extreme heat tolerance will continue to be the major barrier. Additionally, a steady supply of processed functional materials and raw minerals is necessary for the production of lithium-ion battery cathodes. Depletion of mineral deposits, however, is anticipated to impede market expansion.
Moreover, acids and heavy metals like lead and mercury are among the toxic substances found in batteries. In many regions of the world, occupational illnesses among battery workers have increased. Battery production has risen while disregarding the safety of the local population due to the rising need for batteries, the availability of cheap labor, and growing corporate interests. As a result, governments are being compelled to take stringent action against the manufacturers of these batteries, which would restrain the market for cathode materials.
Moreover, acids and heavy metals like lead and mercury are among the toxic substances found in batteries. In many regions of the world, occupational illnesses among battery workers have increased. Battery production has risen while disregarding the safety of the local population due to the rising need for batteries, the availability of cheap labor, and growing corporate interests. As a result, governments are being compelled to take stringent action against the manufacturers of these batteries, which would restrain the market for cathode materials.
New Product Launches, Agreements & Investments are Fuelling the Market Expansion
Major market players are actively pursuing competitive marketing strategies to enhance their market share on a global scale, including alliances, technological developments, investments, acquisitions, and R&D activities. For example, Toyota Motor Corporation decided to use the lithium nickel manganese cobalt oxide (NMC) that Sumitomo Metal Mining Co., Ltd (SMM) produces as cathode material for use in lithium-ion batteries in the new Yaris hybrid automobile that it unveiled in February 2020. Later in November 2022, in order to obtain copper foil and cathode active materials for EV lithium-ion batteries, Panasonic Energy Co., Ltd., a subsidiary of the Panasonic Group, stated that it had reached an agreement with Redwood Materials Inc., a producer of sustainable battery materials. In 2025, a new facility in De Soto, Kansas, will begin producing lithium-ion batteries using Redwood's recycled cathode active materials, and in 2024, the Panasonic Energy of North America (PENA) facility in Sparks, Nevada, will begin producing lithium-ion batteries using Redwood's recycled copper foil.
Additionally, in December 2020 GS Yuasa Corporation announced the launch of its LIM30HL line of industrial lithium-ion battery modules. The battery modules of the new LIM30HL series are upwardly compatible, have a larger rated capacity, and have reduced internal resistance while preserving the same dimensions as the present LIM25H series. Apart from this, In April 2023, POSCO FUTURE M, the battery materials division of Posco Holdings in South Korea, proposed to invest KRW615bn (US $462 Million) to increase production capacity for high nickel cathodes by an extra tonne per year by the end of 2025. The business planned to establish itself as a major supplier of battery components as it expects a significant increase in demand for electric vehicles (EVs) in the coming years.
Additionally, in December 2020 GS Yuasa Corporation announced the launch of its LIM30HL line of industrial lithium-ion battery modules. The battery modules of the new LIM30HL series are upwardly compatible, have a larger rated capacity, and have reduced internal resistance while preserving the same dimensions as the present LIM25H series. Apart from this, In April 2023, POSCO FUTURE M, the battery materials division of Posco Holdings in South Korea, proposed to invest KRW615bn (US $462 Million) to increase production capacity for high nickel cathodes by an extra tonne per year by the end of 2025. The business planned to establish itself as a major supplier of battery components as it expects a significant increase in demand for electric vehicles (EVs) in the coming years.
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Rising Demand for Improved Battery Technology is Driving the Market Growth
The lithium-ion battery cathode market in Asia Pacific experienced significant growth and it is anticipated that it will be maintained throughout the forecast period. The main driver boosting demand for lithium-ion battery cathodes in the Asia Pacific is the rising need for batteries in consumer electronics and industrial applications. In addition, rising lithium battery production in the region is anticipated to fuel market expansion throughout the forecast period. Additionally, owing to the rising demand in the automotive sector, major vehicle producers in North America and Asia Pacific offer a potential prospect for market expansion. Over the forecast period, rising adoption of electric vehicles and improvements in battery technology are anticipated to fuel demand for cathodes in the Asia Pacific and North America region.
The report provides a detailed overview of the lithium-ion battery cathode market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the lithium-ion battery cathode market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the lithium-ion battery cathode market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the lithium-ion battery cathode market. Some key countries and regions included in the lithium-ion battery cathode market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Austria, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Morocco, Algeria, Israel, Iran, Kenya, Turkey, Rest of MEA |
Lithium-Ion Battery Cathode Market Research Report Covers In-depth Analysis on:
- Lithium-ion battery cathode market detailed segments and segment-wise market breakdown
- Lithium-ion battery cathode market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in lithium-ion battery cathode industry)
- Current, historical, and forthcoming 10 years market valuation in terms of lithium-ion battery cathode market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Lithium-ion battery cathode market demand analysis
- Lithium-ion battery cathode market pricing analysis overthe forecast period (by key segment and by region)
- Lithium-ion battery cathode market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the lithium-ion battery cathode market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in lithium-ion battery cathode market
- Lithium-ion battery cathode market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on lithium-ion battery cathode market forecast by countries
- Mergers and acquisitions in lithium-ion battery cathode market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors influence the demand for lithium-ion battery cathodes in various industries?
Factors like the adoption of electric vehicles, renewable energy storage, and advancements in portable electronics technology significantly drive the demand for lithium-ion battery cathodes across industries.
Which industries utilize lithium-ion battery cathodes the most?
Key industries include automotive, consumer electronics, renewable energy storage, and industrial applications, where lithium-ion batteries are essential for energy efficiency and sustainability goals.
What are the current trends in lithium-ion battery cathode technologies?
Emerging trends include advancements in cathode materials like nickel-rich chemistries, solid-state batteries, and sustainable material sourcing, reshaping the market landscape.
