According to Future Market Insights, the nickel cobalt manganese (NCM) market in global reached USD 1.5 billion in 2018. Demand for nickel cobalt manganese saw a 9.0% year-on-year growth in 2022, suggesting an expansion of the global market to USD 2.3 billion in 2023. Projections for the period between 2023 and 2033 indicate a 15.7% compound annual growth rate (CAGR) for NCM sales in the region, resulting in a market size of USD 10.0 billion by the end of 2033.
Nickel Cobalt Manganese (NCM), also known as Lithium Nickel Manganese Cobalt (NMC) is a key ternary cathode material for lithium-ion batteries. Cathode materials for lithium ion batteries are used in manufacturing of batteries for electric vehicles or hybrids vehicles.
Lithium ion batteries with NCM cathode materials have high density, good cycle performance, excellent cycle stability, high voltage platform, good thermal stability and long life cycle. These cathode materials find applications in power batteries, polymer batteries, aluminum shell batteries cylindrical batteries, tool batteries, etc. The global NCM market will account nearly 5.0% of the global lithium ion battery market in 2033.
Drivers Propelling the Demand for Market Growth include:
Challenges for Companies /Manufacturers in the Nickel Cobalt Manganese Market:
Opportunities in the Nickel Cobalt Manganese Industry
Latest Trends in the Nickel Cobalt Manganese Market:
| Attribute | Details |
|---|---|
| Market Size (2023) | USD 2.3 billion |
| Market Projected Size (2033) | USD 10.0 billion |
| Value CAGR (2023 to 2033) | 15.7% |
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From 2018 to 2022, the market has experienced a CAGR of 9.8%, reaching a market size of USD 2.3 billion in 2023. The increasing popularity of electric vehicles has significantly boosted the market for nickel, cobalt, and manganese. The lithium-ion batteries used in electric vehicles require these materials. With the growing shift towards more eco-friendly and sustainable transportation, demand for these materials has increased along with EV manufacturing and adoption across the globe.
The global shift to renewable energy has also increased demand for nickel, cobalt, and manganese over the past few years. These materials are critical elements in energy storage systems such as grid-scale batteries and stationary storage solutions. As governments attempt to incorporate more renewable energy into their power grids, demand for storage systems and the materials associated with them has increased.
Looking ahead, the market is expected to rise at a CAGR of 15.7% from 2023 to 2033. During the forecast period, the market size is expected to reach USD 10.0 billion. The growing technological advancements in the development of advanced battery technologies, especially in the energy storage sector is anticipated to propel the demand for NCM materials during the forecast period.
These cathode materials significantly enhance the performance, energy density, and general efficiency of lithium ion batteries. The growing demand for lithium ion batteries are estimated to drive the demand for higher quality and more durable components, such nickel cobalt manganese across the globe.
The industry is witnessing a transition towards high-nickel NCM cathodes, such as NCM 811 (8 parts nickel, 1 part cobalt, 1 part manganese), which offer higher energy density and improved performance. This shift presents opportunities for manufacturers to develop and commercialize advanced NCM cathode materials with higher nickel content.
Principal Consultant
| Country | The United States |
|---|---|
| Market Size (USD billion) by End of Forecast Period (2033) | USD 1.0 billion |
| CAGR % 2023 to End of Forecast (2033) | 14.2% |
The Nickel Cobalt Manganese industry in the United States is expected to reach a market value of USD 1.0 billion by 2033, expanding at a CAGR of 14.2%. Significant increase in the production and sales of electric vehicles is anticipated to drive the demand for NCM materials in the automotive sector. The increasing demand for lithium ion batteries from marine and power sector is another key factor bolstering the sales of NCM materials in the country.
Several government supportive initiatives for the development of raw materials processing plants for lithium battery materials, such as cathodes, anodes, and electrolytes is also one of the prominent factors driving the sales of nickel cobalt manganese market in the United States.
| Country | Germany |
|---|---|
| Market Size (USD billion) by End of Forecast Period (2033) | USD 0.3 billion |
| CAGR % 2023 to End of Forecast (2033) | 15.4% |
The nickel cobalt manganese industry in Germany is expected to reach a market value of USD 0.3 billion by the end of the forecast period, experiencing a CAGR of 15.4%. NCM cathode materials are used in energy storage systems like as grid-scale storage and home energy storage.
The increased demand for renewable energy integration and grid stabilization is driving the demand for improved energy storage technologies, providing growth opportunities in the country for NCM materials.
| Country | China |
|---|---|
| Market Size (USD billion) by End of Forecast Period (2033) | USD 1.2 billion |
| CAGR % 2023 to End of Forecast (2033) | 18.1% |
The nickel cobalt manganese market in China is anticipated to reach a market share of USD 1.2 billion, moving at a CAGR of 18.1% during the forecast period. The increasing adoption of electric vehicles is a key factor driving the NCM cathode materials market in the country. NCM cathodes are widely used in lithium-ion batteries for EVs due to their high energy density, improved thermal stability, and longer lifespan compared to other cathode materials. There are a few other factors expected to drive the demand for NCM market in the country are:
| Country | Japan |
|---|---|
| Market Size (USD billion) by End of Forecast Period (2033) | USD 0.2 billion |
| CAGR % 2023 to End of Forecast (2033) | 13.3% |
The product market in Japan is estimated to reach a market share of USD 0.2 billion by 2033, thriving at a CAGR of 13.3%. The market in Japan is predicted to grow because of the increasing adoption of lithium ion batteries in industries such as power, automotive and aerospace, and others. Robust expansion of marine industry along with the increasing need for energy storage in marine is anticipated to propel the growth of nickel cobalt manganese market in the country.
| Country | India |
|---|---|
| Market Size (USD billion) by End of Forecast Period (2033) | USD 0.4 billion |
| CAGR % 2023 to End of Forecast (2033) | 16.7% |
The nickel cobalt manganese industry in India is anticipated to grow at a CAGR of 16.7% during the projected period, and is estimated to reach a value of USD 0.4 billion at the end of 2033. Around 80% of India's demand for lithium ion batteries comes from the automotive industry. The robust growth of the Indian automotive sector, coupled with a shift in preference towards electric vehicles, is expected to boost NCM market sales through the forecast period.
Several government initiatives to promote electric vehicle and cell manufacturing are expected to provide lucrative opportunities for the manufacturers operating in battery materials. By 2030, the Indian government aims to electrify 80% of two- and three-wheelers, 30% of passenger cars, 40% of public vehicles, and 70% of commercial vehicles. This shift towards adoption of electric vehicles will drive the sales of NCM materials in the country.
The NMC622 (60% nickel, 20% manganese and 20% cobalt) segment is expected to dominate the nickel cobalt manganese industry with a significant growth rate of 14.9% from 2023 to 2033. This segment captures a significant market share in 2023 and is estimated to create billion dollar opportunity during the forecast period.
The NMC955 (90% nickel, 5% manganese and 5% cobalt) segment is anticipated to register highest CAGR of 17.1% during the forecast period. The growing focus and increasing demand for cobalt free batteries is one of the key factors bolstering the sales of this segment across the globe. With their advantages in energy density, high-nickel and cobalt-free ternary batteries have been a popular development goal for battery manufacturers and OEMs across the globe.
The automotive segment is one of the prominent segment in the growth of the NCM market across the globe. The robust increase in the production and sales of electric vehicles to mitigate climate change is one of the key factors bolstering the sales of these materials in automotive segment. Regulatory bodies around the world are focusing and implementing regulations for greener and pollution-free transportations, which is anticipated to increase the demand for lithium ion batteries during the forecast period.
The increasing adoption of lithium ion batteries in energy storage and power grid systems plays a key role in bolstering the sales of NCM materials in power sector. The growing focus in power sector to develop renewable energy and store it for the future and various advantages associated with these systems, such as low self-discharge rate, low cost, and small installation area are some of the key factors encouraging the adoption of Li-ion batteries in smart grid and energy storage systems.
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The nickel cobalt manganese industry is consolidated market with the presence of significant players holding considerable market share. Key players are actively engaged in expansion, acquisitions, and new product launch activities to enhance their global positions along with product portfolio.
Manufacturers are significantly investing in the development of novel materials with low environment impact and enhanced performance. Market leaders are developing cobalt-free batteries to achieve sustainability and to improve battery performance.
Key Strategies Adopted by the Players
Product Innovation
Companies invest hugely in research and development to introduce innovative products that offer enhanced efficiency, reliability, and cost-effectiveness. Product innovation enables companies to differentiate themselves from their competitors and cater to the evolving needs of customers.
Strategic Partnerships and Collaborations
Key players in the industry often form strategic partnerships and collaborations with other companies to leverage their strengths and expand their reach in the market. Such collaborations also allow companies to gain access to new technologies and markets.
Expansion into Emerging Markets
The nickel cobalt manganese industry is witnessing significant growth in emerging markets such as China and India. Key players are expanding their presence in these markets by establishing local manufacturing facilities and strengthening their distribution networks.
Mergers and Acquisitions
Key players in the nickel cobalt manganese industry often engage in mergers and acquisitions to consolidate their market position, expand their product portfolio, and gain access to new markets.
Key Players in the Nickel Cobalt Manganese Industry
Key Developments in the Nickel Cobalt Manganese Market:
The Asia Pacific region generated 35% of the global demand for Nickel Cobalt Manganese in 2022.
The Asia Pacific market is projected to grow at a CAGR of 15.7% through 2033.
The nickel manganese cobalt (NMC) segment contributes 60% of total production.
The cathode segment holds 65% of the global market share.
The Nickel Cobalt Manganese market has been growing at a CAGR of 9.8% from 2018 to 2022.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Global Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Global Market Pricing Analysis 7. Global Market Demand (in Value or Size in USD Billion) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 9.1. NMC333 9.2. NMC622 9.3. NMC955 9.4. Others 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use Industry 10.1. Consumer Electronics 10.1.1. Smartphones 10.1.2. UPS 10.1.3. Laptops 10.1.4. Others 10.2. Automotive 10.3. Aerospace 10.4. Marine 10.5. Medical 10.6. Industrial 10.7. Power 10.8. Others 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. Eastern Europe 11.5. East Asia 11.6. South Asia and Pacific 11.7. Middle East and Africa 12. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 18. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 19. Key Countries Market Analysis 20. Market Structure Analysis 21. Competition Analysis 21.1. BASF SE 21.2. Sumitomo Metal Mining Co., Ltd. 21.3. Xiamen TOB New Energy Technology Co., Ltd. 21.4. Umicore 21.5. Asahi Kasei 21.6. Mitsubishi Chemical Corporation 21.7. POSCO Future M Co., Ltd. 21.8. Johnson Matthey 21.9. The 3M Company 21.10. Evonik Industries 21.11. Nichia Corporation 21.12. LG Chem 21.13. Tanaka Chemical Corporation 21.14. Others 22. Assumptions and Acronyms Used 23. Research Methodology
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Nickel Cobalt Manganese Market
