Investments Surge in Cathode Materials

Cathode materials are emerging as an indispensable component of the ever-expanding lithium-ion battery industry. They are made up of metal oxides, such as lithium cobalt oxide (NMC) and lithium iron phosphate (LFP) and are responsible for storing and releasing lithium ions during the charging and discharging of a battery. From consumer electronics and electric vehicles (EVs) to energy storage systems, cathode materials play a vital role in optimizing these applications.

According to a report by the Global Battery Alliance, the demand for batteries is growing rapidly and is estimated to increase by 25% per year to reach 2,600 gigawatt hours by 2030. The demand for cathode materials is driven by the rise in EVs, as they use lithium-ion batteries, which are made of cathode materials. The growth of renewable energy sources is further propelling the demand for cathode materials as they require efficient energy storage systems to store excess renewable energy from sources like solar and wind power.

Industrial Info is tracking 117 active cathode projects worth US$31.53 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a detailed list of project reports.

Asia stands to be the dominating region, accounting for about 42% (US$13.25 billion) of the total global investment, followed by North America, contributing 34% (US$10.70 billion), and Europe, accounting for 22% (US$6.96 billion).

By country, China is the leading investor in cathode materials and is investing about US$10.12 billion. The next most significant investors are the U.S. and Canada, with US$6.99 billion and US$3.71 billion worth of investment, respectively.

The key players in the market for cathode materials are LG Corporation (Seoul, South Korea), Acciona SA (Madrid, Spain), and POSCO Holdings (Pohang-si, South Korea), which are responsible for 27% of the total investment toward cathode materials.

LG Chemical Limited is investing US$3.2 billion to set up a grassroot battery cathode material plant in Clarksville, Tennessee, to supply EV battery plants. Subscribers can click here for the project report.

Zhejiang Weiming Shengqing Energy Materials Company Limited (Wenzhou, Zhejiang, China) is spending US$1.62 billion to set up a grassroot nickel-rich ternary cathode materials plant in Wenzhou, China. Subscribers can click here for the project report.

Although a large number of projects with significant investment are still in their initial stages with just 20% of them undergoing construction, about 69% of the total investment is geared toward grassroot projects and another 26% of the total spending is toward plant expansion projects, which signifies the growing interest of investors toward increasing the production of cathode materials.

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