The global nickel cobalt manganese (NCM) industry is projected to reach USD 2.7 billion in 2025. The industry will rise tremendously, led by the growing demand for lithium-ion batteries in electric vehicles and energy storage systems. With a compound annual growth rate (CAGR) of 15.7%, the industry is expected to grow to USD 11.5 billion by 2035.
Nickel Cobalt Manganese (NCM) remains a prime ternary cathode material for lithium-ion batteries. The extensive usage in electric and hybrid cars is propelling the demand for NCM materials, providing the sector a long-term benefit.
Looking back to 2024, the NCM sector witnessed robust development fueled by the surging incorporation of lithium-ion batteries in electric vehicles and energy storage systems. Many businesses concentrated on enhancing battery performance, improving energy density, and expanding the supply chain. Furthermore, investments in sustainability and recyclable sourcing escalated the industry growth and demand to meet the raw materials limitations.
Moving forward to 2025, the industry is all prepared for technological advancements which will maximize the battery efficiency and durability, eventually refining the industry landscape. Government policies and initiatives supporting renewable energy transitions and surging demand for high-performance batteries across applications will lead the production process. Moreover, strategic partnerships in the battery supply chain will shape the industry landscape.
| Metric | Value |
|---|---|
| Industry Value (2025E) | USD 2.7 billion |
| Industry Value (2035F) | USD 11.5 billion |
| CAGR (2025 to 2035) | 15.7% |
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| 2020 to 2024 | 2025 to 2035 |
|---|---|
| There is a surge in the demand for NCM batteries as automakers shift to manufacturing EVs. | Extensive adoption of advanced nickel NCM variants that provide longer battery life and better efficiency. |
| Lithium-ion battery development focused on improving and optimizing performance, cost efficiency, and safety. | Emergence of cutting-edge battery applications with silicon anodes and solid-state technologies. |
| Battery recycling and second-life applications gained momentum but remained in the early stages. | Closed-loop recycling will become mainstream, minimizing virgin material reliance. |
| Charging infrastructure uptake facilitated EV adoption, but encountered regional disruptions. | Ultra-high energy density batteries and fast-charging innovations transform the EV world. |
| China dominated the production of NCM cathodes, with increasing competition from other parts of the world. | Supply chain diversification with major investments in Europe and North America. |
| Consumer electronics and power tools sustained consistent demand for NCM-based batteries. | Industrial energy storage growth and grid-scale battery applications fuel long-term growth. |
The Nickel Cobalt Manganese (NCM) business comes under the battery materials and energy storage segment with uses across electric vehicles (EVs), grid-scale energy storage, aerospace, and high-performance electronics. It is a pivotal bridge between the renewable energy transition, automotive electrification, and future battery technologies.
The NCM business is at the forefront of technological innovation and geopolitical strategy, and it is a critical component of global energy security and industrial competitiveness. The fast-paced scale-up of EV manufacturing has fueled resource nationalism, with countries securing raw material supply to prevent dependence on one region. China's traditional dominance in NCM manufacturing is being met with forceful investments in North American and European gigafactories.
Additionally, the trend of deglobalization and rigid ESG standards compelled manufacturers towards ethical mining and circular economy practices. The industry is also undergoing several revolutions and breakthroughs in high-capacity batteries with silicon anodes and solid-state electrolytes that further elevate energy density.
The NMC622 segment will lead the industry between 2025 and 2035, expanding at a CAGR of 14.9%. Its balanced mix of nickel, manganese, and cobalt provides high energy density and thermal stability, which makes it the most sought-after option among EV manufacturers.
Battery makers will remain committed to NMC622 because it has found extensive usage in the automotive and energy storage industries. Technological developments in battery technology will continue to improve charge retention and lifecycle, cementing its market position.
The NMC955 segment will experience the highest growth rate in the forecast period at a CAGR of 17.1%. Manufacturers will target high-nickel compositions to achieve maximum energy output, especially for long-range EVs and high-performance applications. Production complexity and sourcing difficulties do exist, but material processing innovations and localized supply chains will aid its growth. NMC955 will consequently gain a considerable share in high-end EVs and aerospace applications.
NMC333 will continue to be applicable in niche uses where cost and stability are more valuable than energy density requirements. Its lower nickel composition is well-suited for stationary energy storage and low-power consumer devices. Although its use in EVs will continue to be restricted, battery recycling and second-life usage will maintain its industry share. Other NCM variants will develop to address particular industry requirements, fueled by technology development and new regulations.
Consumer electronics will remain the prime driver of NCM demand, with smartphones, laptops, and UPS systems embedding sophisticated battery technologies. The segment will increase consistently, aided by the growth of 5 G-enabled devices and AI-driven gadgets. Suppliers will concentrate on optimizing energy density and minimizing cobalt content to align with sustainability initiatives while improving device performance.
Automakers will give highest preference to high-nickel NCM variants in order to increase vehicle range and enhance charging efficiency. Government subsidies on battery manufacturing and EV infrastructure will further boost the segment. Developments in fast-charging capability and solid-state battery implementation will reshape energy storage solutions, ensuring continued growth.
Aerospace and naval industries will adopt NCM-based batteries to improve energy efficiency and minimize dependence on conventional fuel sources. Medical and industrial segments will increasingly rely on NCM batteries for medical devices, robotics systems, and automation. Critical healthcare technology's demand for robust, durable power sources and smart manufacturing will push investments in higher-end battery technology.
Power storage systems will gain broad adoption, with renewable energy integration making large-scale deployment of batteries viable. Other sectors, such as defense and telecommunications, will persist in using NCM-based solutions for increased energy efficiency and operating reliability.
The United States is going to experience sustained growth in the nickel-cobalt-manganese (NCM) sector with surging investments into domestic battery production and energy storage infrastructure. Reduced dependence on overseas raw materials and local refining, as well as local mining of main battery metals, are going to be encouraged by the nation.
Inflation Reduction Act and government incentives are going to propel EV deployment, thereby promoting demand for batteries based on NCM. Battery recycling programs will become more prevalent, alleviating supply chain issues and enhancing sustainability.
Research and development for high-nickel NCM versions will unlock improved performance, enabling innovation in EV range and efficiency. Gigafactory expansion will solidify the USA's position as a leading player in battery technology. The USA NCM industry will expand at a CAGR of 14.9% between 2025 and 2035, with more emphasis on establishing a domestic supply chain and incorporating next-generation battery technologies.
India's NCM sector will witness fast growth, driven largely by the country's rigid electrification policies and the impetus for self-reliance in battery production. Subsidies from the government, including the Production-Linked Incentive (PLI) scheme, will bring big-ticket investments into domestic battery production and raw material refining. Growth will be boosted by the growing adoption of two- and three-wheeler EVs, as well as higher demand for energy storage solutions.
India's mining industry will look inward to explore local deposits of nickel and cobalt in order to lower reliance on imports. At the same time, joint ventures with international battery producers will consolidate the supply chain. Innovation will stand on affordable battery technologies suited for India's climatic conditions and road networks. India's NCM sector is forecast to grow at a CAGR of 16.4% from 2025 to 2035, with robust government support and strategic industry collaborations driving the sector.
China will continue to lead the global NCM industry because of its established battery supply chain, technological innovation, and robust government support. The world's largest EV industry will keep investing in high-energy-density batteries, especially in high-nickel NCM compositions. Strategic collaborations between automakers and battery makers will drive innovation, further reducing the cost and improving the efficiency of EVs.
China's dominance over strategic raw materials, coupled with expansionist mining and processing strategies, will create a reliable supply chain. Sustainability efforts from the government will spearhead battery recycling efforts, driving circular economy habits.
Developments in solid-state battery technology and AI-powered energy management will enhance battery performance. China's NCM business is projected to expand at a CAGR of 15.9% between 2025 and 2035, further cementing its dominance in battery manufacture and research.
The United Kingdom's NCM sector will record significant growth on the back of the shift toward zero-emission vehicles and its pursuit of achieving net-zero levels. Investment in battery gigafactories and cooperation with EU automakers will enhance local battery manufacturing. The UK government ban on new diesel and petrol cars will spur uptake of EVs, boosting the demand for NCM-based batteries. The nation will minimize reliance on imported raw materials through strategic alliances with international mining companies.
Research organizations will be in charge of battery chemistry innovation toward greater energy efficiency and recyclability. Creation of a sustainable battery ecosystem through second-life battery utilization will be a dominant trend. FMI opines that the UK NCM industry is expected to grow with a 15.2% CAGR from 2025 to 2035, with a heavy focus on localized manufacturing and green energy projects.
Germany's NCM sector will flourish as the nation consolidates its status as a European battery manufacturing stronghold. Top automaker brands pledging full electrification, high-performance NCM batteries will see immense demand. The nation's precision engineering expertise will be behind innovation in battery efficiency, where longer lifespan and rapid charging are priorities. Strategic government support will bring local raw materials processing and battery cell manufacturing.
Germany's strong research environment will enable next-generation battery innovations such as high-nickel chemistries and cobalt-free solutions. Circular economy programs will drive battery recycling, minimizing dependence on virgin materials. Scaling up renewable energy storage solutions will further drive industry growth. FMI opines that the NCM business in Germany is anticipated to grow at a CAGR of 15.5% during 2025 to 2035 with high-quality manufacturing and sustainable supply chains.
South Korea will cement its position as a world leader in battery technology, with its cutting-edge manufacturing base leading innovation in high-performance NCM cathodes. Its top battery manufacturers will invest in the next generation of lithium-ion technologies, leading to increased energy density and safety. Government-sponsored R&D initiatives will propel innovation in battery recycling and advances in solid-state batteries. South Korea will solidify its battery supply chain through long-term contracts on nickel and cobalt imports.
South Korea's expanding EV industry and demand for high-performance consumer devices will fuel additional investment in NCM technology. Automakers will implement AI-powered battery management systems, maximizing power efficiency and endurance. FMI analysis found that the South Korean NCM industry is expected to expand at a CAGR of 15.8% between 2025 and 2035, with ongoing innovation and robust global alliances guaranteeing its competitiveness.
Japan's NCM industry will grow as the nation prioritizes energy efficiency and technology leadership in battery chemistry. Global leading automakers and electronics companies will fuel the demand for high-performance NCM batteries, especially for hybrid and full-electric vehicles. Japan's robust research network will drive innovations in high-nickel battery chemistry, maximizing energy density and minimizing cobalt dependency.
The government's focus on a sustainable transition to energy will drive the adoption of battery storage systems for renewable power integration. Strategic investment in battery recycling and second-life use will build a more sustainable value chain. Japan's partnerships with world leaders will facilitate access to key raw materials. The NCM industry in Japan will expand at a CAGR of 15.4% between 2025 and 2035, fueled by high-tech innovation and long-term sustainability.
France's NCM sector will grow fast as a result of aggressive government policies driving EV uptake and battery production. France's forced initiative for indigenous gigafactories will cut imports and help the local auto industry. France's R&D spending will lead to improved battery efficiency through cost-cutting and increased energy density. France's pledge for carbon neutrality will drive the uptake of battery storage systems for green energy projects.
Strategic partnerships with European countries will enhance supply chain resilience and provide stable access to raw materials. Smart grid technology integration will further enhance the demand for NCM advanced batteries. FMI analysis found that the French NCM industry will grow at a CAGR of 15.3% from 2025 to 2035, and sustainability and innovation will drive its growth.
Italy's NCM industry will experience robust growth as the nation invests in battery manufacturing to aid its growing EV industry. Government policies on green transportation and renewable energy integration will fuel the demand for high-performance NCM batteries. Automakers will seek lightweight and high-energy-density batteries to improve vehicle efficiency. Research facilities will work on enhancing battery safety and recyclability, which will be in line with European Union sustainability objectives.
The industrial sector of the country will incorporate innovative battery storage solutions to optimize energy consumption in industry. Italy will reinforce its battery supply chain and technology base through a partnership with European players. The Italian NCM industry is expected to expand at a CAGR of 15.1% from 2025 to 2035, fueled by policy initiatives and improvements in battery efficiency.
Australia and New Zealand's NCM sector will grow considerably as they become suppliers of major battery minerals like nickel and manganese. Australia's robust mining industry will be responsible for stabilizing global supply chains, while New Zealand's emphasis on renewable energy storage will create demand for sophisticated battery solutions. Both nations will see more investment in battery production, which is in line with their clean energy pledges.
Research centers will establish new recycling processes to make batteries more sustainable. The increase in EV adoption and energy storage initiatives in urban and rural locations will also enhance industry growth. Australia and New Zealand's NCM industry is anticipated to develop at a 15.6% CAGR between 2025 and 2035, driven by resource security and sustainable energy fuel growth.
Future Market Insights conducted surveys among major stakeholders, such as battery producers and raw material providers, to evaluate trends in the nickel cobalt manganese (NCM) sector. Results indicate a notable shift toward high-nickel composition, with 72% of producers focusing on NMC622 and NMC955 for increased energy density.
Diversification of the supply chain is also an increasing trend, with 65% of stakeholders looking at alternative sources of nickel and cobalt to lower geopolitical risks. Sustainability is still a concern, with 80% pointing out that battery recycling technologies should reduce raw material dependence and costs.
Government incentives and policies will be the drivers of growth for the NCM industry, with 68% of the respondents anticipating greater localization of battery manufacturing, especially in Europe and North America. R&D around solid-state batteries is underway, with stakeholders considering it an answer to present battery limitations. Still, 57% of the suppliers envision price volatility for raw materials, so strategic collaboration and technology innovation will be essential to help industry participants stay ahead.
Government Regulations
| Countries | Government Policies & Regulations |
|---|---|
| United States | The Inflation Reduction Act (IRA) incentivizes domestic battery production and raw material sourcing. Companies must comply with the National Electric Vehicle Infrastructure (NEVI) standards for funding eligibility. Stricter Environmental Protection Agency (EPA) regulations on battery disposal drive sustainability initiatives. |
| India | The Production-Linked Incentive (PLI) scheme promotes local manufacture of batteries. New Battery Waste Management Rules will make it mandatory for producers to adopt take-back and recycling mechanisms. Import duties on nickel and cobalt are being considered for hikes to increase domestic sourcing. |
| China | Government regulations demand a minimum of 50% domestic sourcing of EV battery materials. High-energy-density battery production is given importance under the New Energy Vehicle (NEV) policy. Aggressive carbon neutrality goals necessitate lower cobalt usage and higher recycling. |
| United Kingdom | The Zero Emission Vehicle (ZEV) Mandate necessitates higher EV production by manufacturers, which drives up NCM battery demand. Manufacturers need to comply with UKCA (UK Conformity Assessed) certification for battery safety and quality requirements after Brexit. |
| Germany | European Green Deal imposes carbon reduction goals that affect NCM material procurement. EU Battery Regulation 2024 requires raw material traceability and increased recycling rate requirements for battery manufacturers. |
| South Korea | State-sponsored K-Battery Strategy incentivizes local manufacturing and R&D investment. The Battery Safety Certification Program demands comprehensive testing prior to industry approval. New subsidies foster research on solid-state batteries. |
| Japan | The Green Innovation Fund offers financial support for new generation battery technologies. Tougher regulation of imported battery materials guarantees sustainability targets. Commercial battery products are required to be certified by JIS (Japanese Industrial Standards). |
| France | The France 2030 Investment Plan invests in local battery manufacturing and recycling. EU Circular Economy Action Plan requires stricter disposal and reuse rules for lithium-ion batteries. |
| Italy | Government incentives in the form of taxes drive EV battery manufacturing. Battery transparency and sustainability are ensured through compliance with EU Battery Passport regulations. CE marking guarantees NCM batteries' compliance with European safety standards. |
| Australia | Australia's Critical Minerals Strategy encourages nickel and cobalt mining to expand. |
| New Zealand | Battery Product Stewardship Regulations in New Zealand mandate companies to design end-of-life battery management systems. |
The NCM segment has a solid growth prospect as battery chemistry is developing to cope with the requirements like cost-efficiency, performance, and sustainability. Businesses can take advantage of cutting-edge technologies and high-nickel compositions, including NMC955, which ensures improved energy density while limiting the dependency on cobalt, and lowering price volatility issues.
Strategic investments in closed-loop battery recycling will become crucial, as regulatory forces in the USA and EU will impose high recycling targets. Alliances and collaborations with automakers and energy storage companies will propel the demand for tailor-made battery solutions.
Moreover, long-time mining rights in emerging sectors including Indonesia and Africa can stabilize raw material supply. Developments in silicon anodes and electrolyte optimization will make NCM batteries more efficient and sophisticated. AI-supported technologies will continue to enhance battery endurance, shaping the future evolutions and dynamics of the industry.
The nickel cobalt manganese (NCM) sector is moderately concentrated with industry leaders occupying high-nickel grades while new companies specialize in battery recycling and future generations of chemistries. Competition is based on cost competitiveness, security of raw materials, and superior battery performance, resulting in aggressive growth, vertical integration, and research partnerships.
Leading companies are acquiring exclusive mining rights and investing in local production centers to reduce risks associated with dependence on foreign suppliers. Strategic alliances between automotive and battery producers are on the rise, securing long-term procurement agreements. Companies are also investing in low-cobalt and cobalt-free cathode technologies to offset supply risks and meet changing sustainability regulations.
In 2024, LG Energy Solution and Toyota signed a joint venture to produce high-nickel batteries in the USA, supporting domestic supply chains. CATL introduced an ultra-high energy density NCM battery with lower cobalt content and improved charge cycles. Tesla signed a multi-year nickel supply agreement with Indonesia, ensuring long-term availability of critical raw materials. Umicore enlarged its battery recycling facility in Poland, enhancing Europe's closed-loop material recovery.
Market Share Analysis
CATL (Contemporary Amperex Technology Co. Limited): ~25-30%
The world's largest battery manufacturer is heavily reliant on NCM batteries for EVs and energy storage.
LG Chem (LG Energy Solution): ~20-25%
A leading global supplier of NCM batteries, with major clients like Tesla, GM, and Hyundai.
Panasonic Corporation: ~15-20%
Known for its partnership with Tesla, Panasonic is a key player in NCM battery production.
BYD Company Ltd.: ~10-15%
A major Chinese EV and battery manufacturer, producing NCM batteries for its vehicles and other OEMs.
Umicore: ~5-7%
A global leader in battery materials, producing NCM cathodes for EV batteries.
Other Players: ~20-25%
Includes smaller regional players, niche companies, and raw material suppliers.
Automakers and energy storage firms prefer NMC955 due to its superior energy density, allowing for longer EV range and improved charging efficiency while reducing cobalt dependency.
The USA Inflation Reduction Act and EU Battery Regulation 2024 are accelerating regional manufacturing, enforcing stricter recycling mandates, and pushing companies to localize raw material sourcing.
Battery producers are acquiring stakes in nickel and cobalt mines, signing multi-year supply contracts with Indonesian and African producers, and scaling closed-loop recycling to reduce reliance on virgin materials.
Companies are integrating silicon-doped anodes to boost energy capacity, enhancing electrolyte stability for faster charging, and developing cobalt-free NCM variations to improve sustainability.
Battery makers are forming joint ventures with automakers, expanding gigafactories in North America and Europe, and accelerating solid-state battery R&D to future-proof against next-gen energy storage advancements.
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