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Cathode Material for Automotive Lithium-Ion Battery Market Research Report: By Type (Lithium–Iron Phosphate, Lithium–Manganese Oxide, Lithium Nickel Cobalt Manganese/Lithium Nickel Manganese Cobalt, Lithium–Titanate Oxide, Lithium–Nickel–Cobalt–Aluminum Oxide), Vehicle Type ( Two-Wheeler, Passenger Car, Commercial Vehicle), Vehicle Technology (Hybrid Electric Vehicle, Plug-In Hybrid Electric Vehicle, Battery Electric Vehicle) - Global Industry Analysis and Growth Forecast to 2030

  • Published: October 2020
  • Report Code: AT12088
  • Available Format: PDF
  • Pages: 146

Cathode Material for Automotive Lithium-Ion Battery Market Overview

Valued at $1,744.9 million in 2019, the global cathode material for automotive lithium-ion battery market is projected to advance with a CAGR of 6.9% during the forecast period (2020–2030). The growth of the industry is expected to be propelled by the increasing adoption of electric vehicles, continuous reduction in the prices of cathode materials, and expansion of the energy storage battery market.

Due to COVID-19, suppliers in the cathode material for automotive lithium-ion battery market across the world are facing challenges, due to the lower demand for lithium-ion batteries and restrictions in manufacturing and trading activities, which are leading to low supply. Moreover, the pandemic negatively impacted the supply chain across numerous industry verticals during the first two quarters of 2020. Furthermore, there has been a reduced production of electric vehicles as a consequence of the low demand for non-essential goods.

Cathode Material for Automotive Lithium-Ion Battery Market

Lithium Ferrophosphate (LFP) Category Held Largest Market Share in 2019

In 2019, the cathode material for automotive lithium-ion battery market was led by LFP, when segmented on the basis of type. Furthermore, the category is projected to continue holding a significant share in the industry in the forecast period. The dominance of the category is attributed to the higher energy density, as well as the lower self-heating rate of this material as compared to others.

Passenger Car Category To Exhibit Fastest Growth during Forecast Period

The fastest growth during the forecast period is expected from the passenger car category, when the cathode material for automotive lithium-ion battery market is segmented based on vehicle type. This would primarily be due to the strong push by the governments of major automobile markets, such as China and the U.S., for producing new-energy cars and the rising demand for fully electric passenger cars with high-range-per-charge features.

Battery Electric Vehicle (BEV) To Be Largest and Fastest-Growing Category during Forecast Period

BEV is expected to remain the largest and fastest-growing category in the cathode material for automotive lithium-ion battery market over the forecast period, when segmented on the basis of vehicle technology. This dominating market share is mainly ascribed to the fact that the integration rate of lithium-ion batteries is much higher in these vehicles, as the average battery capacity of a BEV has to be much higher than hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV).

Asia-Pacific (APAC) Generates Highest Revenue in Industry

APAC dominated the cathode material for automotive lithium-ion battery market during the historical period (2014–2019), and it is expected to remain the dominant region during the forecast period. This is mainly attributed to the high production and sales of electric vehicles in China, which alone accounts for over half the APAC market share; it is expected to dominate the regional market during the forecast period as well. The sale of lithium-ion-battery-based electric buses and trucks in China have been the highest in the world, which makes the Chinese market the biggest in the world, in terms of the requirement for automotive lithium-ion batteries.

Latin America, Middle East, and Africa (LAMEA) To Exhibit Fastest Growth in Industry

Globally, LAMEA is projected to advance with the highest rate in the cathode material for automotive lithium-ion battery market during the forecast period. This is buoyed by the fact that the total consumption of automotive lithium-ion batteries was around 1.6 GWh in 2019, in terms of capacity, which is expected to reach 7.6 GWh in 2024. This would be due to the fact that the demand for electric cars is growing at a significant rate in countries such as Mexico, Brazil, the U.A.E., South Africa, Israel, and Colombia.

Cathode Material for Automotive Lithium-Ion Battery Market

Advancement in Lithium–Nickel–Cobalt–Manganese/Lithium–Nickel–Manganese–Cobalt (NMC) Batteries Is Major Market Trend

Advancements in the battery technology and electrification of automobiles have contributed enormously to the changing landscape of the cathode material for automotive lithium-ion battery market. At present, batteries with cobalt (NMC/Nickel–Coal–Aluminum [NCA]) are preferred due to their high energy density. The cathode combination in an NMC battery is typically one-third nickel, one-third manganese, and one-third cobalt, also known as 1–1–1. NMC chemistries have become preferred among original equipment manufacturers (OEMs) in the automotive industry in recent years, owing to their 1:1:1 proportion of elements, which results in a lower raw material cost. OEMs are eyeing further technological advancements to obtain higher ranges and eradicating safety issues, such as thermal runaways.

Cathode Material for Automotive Lithium-Ion Battery Market

Increasing Adoption of Electric Vehicles

The surging adoption of electric vehicles across the world is the most important factor contributing toward the high demand for lithium-ion batteries, which, in turn, is driving the growth of the cathode material for automotive lithium-ion battery market. In 2019, electric car sales surpassed 2.1 million units, and it is expected that by 2030, the fleet size will exceed 130 million units. Thus, with such a massive growth expected in electric vehicle sales, the demand for their components and raw materials is also expected to increase. The rise in electric vehicle adoption is itself propelled by two major factors, namely the rising environmental concerns and government support for their adoption.

Continuous Reduction in Prices of Cathode Materials

Currently, cathode material constitutes about 25–30% production cost of a lithium-ion battery. Being affected by both upstream raw material suppliers and downstream battery manufacturers, the price of cathode materials is a major factor determining the demand for them. One of the key focus areas for OEMs working on developing cathode materials is to develop the materials at a cheaper cost. The price reduction has driven the demand for cathode materials, and it is expected to have a major positive impact on the industry in the forecast period as well. The cost reduction of lithium-ion battery cathode material is being brought about not at the expense of the energy density, but is rather also aimed at supplementing it. Thus, the continuous reduction in the price of the cathode material is a major driver for the cathode material for automotive lithium-ion battery market.

Expansion of Energy Storage Battery Market

The growing energy storage battery market is another important driver for the cathode material for automotive lithium-ion battery market. Energy storage batteries can store energy during periods of peak energy generation and release it some other time, for instance when the electricity demand is high or production is low. With the growing environmental concerns, government bodies and the public as a whole are shifting toward renewable sources of energy, such as solar energy and wind energy. As these sources of energy cannot serve as continuous generation sources, there is a growing need for energy storage batteries, which mainly include lithium-ion batteries. These batteries have a lifespan of 5–15 years and an up to 98% efficiency, therefore are a frontrunner for energy storage. The growth in the requirement for lithium-ion batteries is expected to drive the demand for cathode materials.

Cathode Material for Automotive Lithium-Ion Battery Market Report Coverage
Report Attribute Details
Historical Years 2014-2019
Forecast Years 2020-2030
Base Year (2019) Market Size $1,744.9 Million
Forecast Period (2020-2030) CAGR 6.9%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Impact of COVID-19, Companies’ Strategic Developments, Competitive Benchmarking, Company Profiling
Market Size by Segments By Type, By Vehicle Type, By Vehicle Technology, By Region
Market Size of Geographies U.S., Canada, Germany, France, U.K., Norway, Sweden, Netherlands, Japan, China, India, South Korea, Brazil, Mexico
Secondary Sources and References (Partial List) China Association of Automobile Manufacturers (CAAM), Copper Development Association, Electric Apparatus and Service Association (EASA), Energy Information Administration (EIA), European Automobile Manufacturers’ Association (ACEA), European Committee of Manufacturers of Electrical Machines and Power Electronics (CEMEP), Institute of Electrical and Electronics Engineers (IEEE)

 

Market Players Are Launching New Products to Counter Competition

The global cathode material for automotive lithium-ion battery market is fragmented in nature, with the presence of players such as Panasonic Corporation, 3M Co., L&F Company Limited, NEI Corporation, and BASF SE.

In recent years, players in the cathode material for automotive lithium-ion battery industry have been launching new products, in order to attain a competitive edge. For instance:

  • In June 2020, NEI Corporation recently introduced three new products to expand its product line of battery electrode sheets. The new materials cater to the increasing demand in the industry for high-performance cathode and anode electrodes for lithium-ion batteries.
  • In June 2020, Nano One Materials Corp. announced the launch of a coated, single-crystal cathode material for automotive lithium-ion batteries, which is claimed to provide up to four times improvement in battery longevity. Furthermore, this technology is applicable to all of Nano One's cathode materials, but is especially relevant to NMC oxide (NMC811).

Some of Key Players in Cathode Material for Automotive Lithium-Ion Battery Market Are:

  • Panasonic Corporation
  • 3M Co.
  • L&F Company Limited
  • NEI Corporation
  • BASF SE
  • Mitsubishi Chemical Holdings Corporation
  • Hitachi Chemical Company Limited
  • Nichia Corporation
  • Umicore SA
  • Johnson Matthey PLC

Cathode Material for Automotive Lithium-Ion Battery Market Size Breakdown by Segment

The cathode material for automotive lithium-ion battery market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Type

  • Lithium–Iron Phosphate (LFP)
  • Lithium–Manganese Oxide (LMO)
  • Lithium Nickel Cobalt Manganese/Lithium Nickel Manganese Cobalt (NMC)
  • Lithium–Titanate Oxide (LTO)
  • Lithium–Nickel–Cobalt–Aluminum Oxide (NCA)

Based on Vehicle Type

  • Two-Wheeler
  • Passenger Car
  • Commercial Vehicle

Based on Vehicle Technology

  • Hybrid Electric Vehicle (HEV)
  • Plug-In Hybrid Electric Vehicle (PHEV)
  • Battery Electric Vehicle (BEV)

Geographical Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany,
    • France
    •  U.K.
    •  Norway
    •  Sweden
    •  Netherlands
  • Asia-Pacific (APAC)
    • China
    • Japan
    •  South Korea
    •  India
  • Latin America, Middle East, and Africa (LAMEA)
    •  Brazil
    •  Mexico
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