A Deep Dive into the Cathode Material Market for Automotive Lithium-Ion Batteries

Market Overview

In 2023, the worldwide cathode material for automotive lithium-ion battery industry?was valued?at 2,303.3 million in, the market is projected?to advance at a CAGR of 7.6% over the forecast period,?to attain 3,818.6 million by the end of the decade.

The forecast of its spread?is?largely?going to?depend on expansion in electric vehicles, as companies are steadily decreasing battery prices per kWh, and the energy storage market is facing growth.

The significant increase in the utilization of electric vehicles worldwide is the most dominant factor out there, which?is expected?to impact positively the value chain of these types of?vehicles?and?in?the long run, increase consumer demand for electric vehicle batteries.?As we continue to become more conscious of environmental protection,?especially?due to a constantly wiping ozone layer, electric vehicle?sales become a growing popular way around the world.

As of?now?the division of greenhouse gases by vehicles contributes to 43% of the total amount of CO2 emitted worldwide.?More pollution from ICE vehicles and respiratory problems are of great concern to governmental institutions, so they take amending measures?in this regard. The?issue of?air pollution in greenhouse gases from urban cars has provoked governments to create?tough?environmental regulations.

The global community is coming to terms with the hazardous emissions caused by fuel-based transportation. Consequently, the governments are introducing fuel-saving schemes.?With their non-emission features, electric vehicles are a marvelous solution to thwart?the burden that pollution exerts?on the environment.

Key Insights

• In 2023, the lithium-ferro phosphate category had a 35% industry share, both?in value and size.
• Supremacy because of advanced energy density and lesser self-heating rate?in comparison?to other materials.
• The category?is projected?to witness greater acceptance of electric vehicle lithium-ion batteries because of low cost.
• Lithium–nickel–cobalt–aluminum oxide (NCA) category is rapidly growing with an 8.2% CAGR during the projection period.
• NCA batteries provide advanced energy density and quicker charging abilities.
• In 2023, the passenger car category had a 50% income share?and?the category?is also projected?to witness the fastest growth.
• The leading position is driven by government steps in major auto-selling nations such as China and the U.S.
• Increasing?need for fully electric passenger cars with high range per charge features.
• Substantial monetary incentives are provided to EV makers and end users to fuel adoption.
• The battery electric vehicle category held a 55% revenue share in 2023 and is the fastest-growing.
• Lithium-ion battery a?major?contributor to BEV dominance due to their high integration rate.
• On average, the energy-carrying capacity of BEV (Battery Electric Vehicles) batteries is higher than those of HEVs and PHEVs.
• In 2023, the APAC region led the cathode material industry with a 45% revenue share, projected to continue dominating over the projection period.
• Primarily?propelled by high production and sales of EVs in China, contributing to more than 50% of APAC's industry share.
• Chinese industry?is projected?to stay the largest worldwide for automotive lithium-ion batteries.
• LATAM is the fastest developing regional industry, with a CAGR of 8.0% from 2024 to 2030.
• This development can?be credited?to the growing need for electric cars in nations such as Brazil and Mexico.

Source: P&S Intelligence