Cathode Material Market
Cathode Material Market Size, Share, Competitive Landscape and Trend Analysis Report by Battery Type, Material and End Use Industry: Global Opportunity and Industry Forecast (2025-2030).
Report ID:
1102
Industry:
Chemicals & Materials
Published on:
Dec 2025
Cathode Material Market Summary
Global Cathode Material Market was a value of USD 33.18 Billion in 2024 and expected it to hit USD 65.15 Billion by 2030, with a CAGR of 11.5 % during the forecast period (2025-2030).
Cathode Material Industry Trends & Analytical Insights
Asia-Pacific led the global Cathode Material Market in 2024, supported by China’s massive battery manufacturing base, rapid EV production growth in South Korea and Japan, and strong government policies promoting localized battery ecosystems.
NMC (Lithium Nickel Manganese Cobalt) cathodes dominated the market, driven by their high energy density, better thermal stability, and widespread adoption in EVs and energy-storage systems.
Leading players—including CATL, BASF, Umicore, LG Energy Solution, POSCO Future M, and Sumitomo Metal Mining—focused on high-nickel cathodes, cobalt-free innovations, and advanced battery recycling technologies.
Market Size & Forecast
Market Size 2024: USD 33.18 Billion
Projected Market Size 2030: USD 65.15 Billion
CAGR (2024-2030): 11.5%
Asia-Pacific: Dominating market in 2024
Cathode Material Market Overview
The global cathode material market in 2024 was heavily shaped by China’s dominant position in the battery supply chain, supported by official data from the Ministry of Industry and Information Technology (MIIT) and the International Energy Agency (IEA). According to MIIT, China’s lithium-ion battery production reached 1,170 GWh in 2024, with the total output value of its national battery industry exceeding 1.2 trillion yuan. This rapid expansion directly boosted cathode-material demand. In 2024, China produced and shipped 3.292 million metric tons of cathode materials, based on industry data published through Chinese government-affiliated industrial reports. Within this Cathode Material production, LFP (Lithium Iron Phosphate) dominated with ~2.427 million tons, reflecting the rapid adoption of LFP batteries in electric vehicles and stationary energy-storage systems. Ternary cathodes such as NMC and NCA accounted for ~643,000 tons, while LCO and LMO contributed smaller shares.
The International Energy Agency (IEA) confirmed that China held approximately 90% of global cathode-material production capacity in 2024, reinforcing its status as the world’s largest supplier. Globally, battery manufacturing capacity reached nearly 3 TWh, with China alone contributing close to half of global cell output. The extremely high concentration of cathode-material and battery production in China illustrates significant supply-chain dependency for EV manufacturers and energy-storage developers worldwide. As EV adoption accelerates in Asia, Europe, and North America, demand for cathode materials continues to surge, especially for high-energy-density chemistries (NMC/NCA) and cost-effective LFP variants.
Cathode Material Market Dynamics
Rapid Growth of Electric Vehicle (EV) Production to boost Cathode Material Market growth
The cathode material market is expanding rapidly, driven by structural changes in global transportation, energy systems, and industrial electrification. One of the most influential drivers is the rapid growth of the electric vehicle (EV) industry. Governments across the world, including China, the United States, Europe, and India, are implementing aggressive policies aimed at reducing carbon emissions and promoting clean mobility. As EV sales continue to rise, demand for lithium-ion batteries—and consequently for cathode materials such as NMC, NCA, and LFP—is increasing at an unprecedented pace. Since the cathode accounts for the highest cost share in a lithium-ion battery, the growth of EV production directly fuels the growth of the cathode material market.
Investment-driven expansion of battery manufacturing capacity in Asia-Pacific—particularly in China, South Korea, and Japan—also plays a crucial role in fueling the Cathode Material market growth. China alone controls around 90% of global cathode-production capacity, supported by large raw-material reserves, advanced refining infrastructure, and extensive government-backed industrial policies. The strong supply-chain ecosystem in the region encourages continuous scaling of cathode material production, lowering costs and enabling global manufacturers to access materials in large volumes, which significantly boosts the Cathode Material Market growth. Additionally, ongoing technological advancements in cathode chemistry—such as high-nickel NMC, NCA with improved energy density, and the rise of cobalt-free and manganese-rich formulations—further contribute to Cathode Material Industry growth. These innovations enhance battery performance, reduce dependency on scarce and expensive elements, and open new opportunities for manufacturers.
Expert Insights:
The NMC cathode segment is increasingly driven by the shift toward high-nickel, low-cobalt chemistries to boost energy density and reduce material costs. However, the segment faces strong supply-chain pressure due to nickel and cobalt price volatility and sourcing risks. Growing competition from LFP in mass-market EVs is pushing NMC toward premium, long-range applications. Battery makers and OEMs are investing heavily in advanced NMC formulations and recycling to improve safety, durability, and supply security. Global policies promoting localized battery manufacturing are further reshaping NMC production and strategic partnerships.
Cathode Material Market Segment Analysis:
Based on Material Type, the market is segmented into Lithium Iron Phosphate, Lithium Cobalt Oxide, Lithium-Nickel Manganese Cobalt, Lithium Manganese Oxide, Lithium Nickel Cobalt Aluminium Oxide, Lead Dioxide, and Other Materials. Lithium-Nickel Manganese Cobalt segment dominated the market in 2024 and is expected to hold the largest Cathode Material Market share over the forecast period. The Lithium-Nickel Manganese Cobalt (NMC) cathode segment is one of the most important and widely used categories in the global cathode material market, primarily driven by its strong adoption in electric vehicles (EVs) and high-performance energy-storage applications. NMC cathodes, often referred to by ratios such as NMC 111, NMC 532, NMC 622, and NMC 811, are designed to balance energy density, cycle life, cost, and safety. Their chemical structure allows for the optimization of nickel, manganese, and cobalt content in different proportions, enabling manufacturers to customize performance based on application.
While China’s battery market is increasingly dominated by LFP, regions such as Europe, South Korea, Japan, and North America continue to rely heavily on NMC chemistries. European EV and battery manufacturers prefer NMC for its balance of energy density, safety, and efficiency, especially for long-range passenger vehicles. Major companies like LG Energy Solution, SK On, Samsung SDI, Umicore, POSCO Future M, and BASF are global leaders in developing advanced NMC cathode materials.
Cathode Material Market Regional Analysis:
Asia Pacific dominated the market in 2024 and is expected to hold the largest Cathode Material Market share over the forecast period. Asia-Pacific is the clear production hub—China alone accounted for the vast majority of cathode output in 2024. Official MIIT reporting shows China’s lithium-ion battery production reached 1,170 GWh in 2024, and industry data indicates China shipped roughly 3.29–3.35 million tonnes of cathode materials in 2024, with LFP dominating (≈72–74% share). China also contains the largest refining, precursor and CAM (cathode active material) capacity globally, creating a deeply integrated supply chain. South Korea and Japan host leading CAM technology developers and large cathode plants (POSCO, LG/SK/Samsung partnerships, Umicore/BASF collaborations in APAC), while Southeast Asian countries (Indonesia, Vietnam) are expanding upstream processing and cell assembly to capture value from nickel resources. India is at an earlier scale-up stage, with domestic cell gigafactories and announcements (e.g., Ola Electric and other OEMs’ plans) pushing local cathode/cell activity.
Cathode Material Market Competitive Landscape
The cathode materials market is led by a mix of traditional chemical groups and specialty battery-material firms that compete on technology, scale, and regional foothold. Umicore and BASF are two large European players focused on higher-end CAM (cathode active materials), technology development, and recycling—Umicore operates European CAM capacity and publicly reported battery-materials revenues and recent restructuring, while BASF is expanding CAM/precursor activities and signing long-term supply agreements.
POSCO Future M is an example of large industrial groups (spun out of steel/chemical majors) moving aggressively into cathode production and downstream supply partnerships. The company is expanding capacity, striking OEM and JV deals (e.g., collaborations with Honda and LFP partners) to secure both technology and offtake. This reflects a broader trend of vertically integrated players trying to capture more of the battery value chain.
Cathode Material Market Scope:
Top Cathode Material Manufacturers include:
1. Contemporary Amperex Technology Co., Ltd. (CATL)
2. BYD Co., Ltd.
4. BASF SE
5. Sumitomo Metal Mining Co., Ltd.
6. LG Energy Solution (LG Chem / LGES)
7. Samsung SDI Co., Ltd.
8. SK On (SK Innovation / SK Battery)
9. POSCO Future M / POSCO Chemical
10. Ningbo Shanshan (Shanshan Group / Hunan Shanshan)
11. BTR New Energy Materials (BTR / Beitong New Energy)
12. EcoPro BM (EcoPro / EcoProBM group)
13. Huayou Cobalt Co., Ltd.
14. Targray (Targray Technology International)
15. Showa Denko Materials (Showa Denko / SKJ)
16. Ganfeng Lithium Co., Ltd.
17. EVE Energy Co., Ltd.
18. Shenzhen Dynanonic Co., Ltd.
19. Mitsui Mining & Smelting / Mitsui & Co. (battery materials divisions)
20. Himadri Speciality Chemical Ltd.
Frequently asked Questions
1. Which material type held the largest market share?
Ans: Lithium-Nickel Manganese Cobalt (NMC) held the largest share in 2024 due to its high energy density, stability, and extensive use in EVs and grid storage.
2. Which companies lead the global cathode-material market?
Ans: Top players include CATL, BASF, Umicore, POSCO Future M, LG Energy Solution, Samsung SDI, SK On, Sumitomo Metal Mining, and EcoPro BM.
3. Why is LFP gaining popularity despite lower energy density?
Ans: LFP is cheaper, safer, cobalt-free, and long-lasting, making it ideal for mass-market EVs, buses, and energy-storage systems.
4. What role does recycling play in the cathode material industry?
Ans: Recycling helps reduce dependency on critical minerals such as cobalt, nickel, and lithium, lowers production costs, and supports circular-economy policies in Europe, China, and the U.S.