Lithium Nickel Cobalt Manganese Oxide Market Size, Share, Growth, and Industry Analysis, By Type (Nmc111, Nmc532, Nmc442, Others), By Application (Notebook, Tablet PC, Portable Power, Electric Tool, Electric Bicycle), Regional Insights, and Forecast To 2032

Updated On: 29 April 2024

lithium nickel cobalt manganese oxide market REPORT OVERVIEW

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The global lithium nickel cobalt manganese oxide market size was USD 4490.52 million in 2021 and the market is projected to touch USD 7752.83 million by 2032 at a CAGR of 5.09% during the forecast period.

The lithium nickel cobalt manganese oxide (NMC) market is a dynamic sector within the battery materials industry. NMC cathode materials are integral components of lithium-ion batteries, renowned for their high energy density and performance, making them vital for various applications, notably electric vehicles (EVs) and portable electronics. As the global push towards clean energy and electrification intensifies, the demand for NMC batteries continues to grow exponentially. This market introduction underscores the pivotal role that NMC materials play in powering the modern world, aligning with sustainability goals, and driving innovation in energy storage and transportation.

COVID-19 Impact: Profound Adverse Effects of the COVID-19 Pandemic on the Market

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market growth and demand returning to pre-pandemic levels.

The Lithium Nickel Cobalt Manganese Oxide (NMC) market experienced negative impacts from the COVID-19 pandemic. Disruptions in the global supply chain led to delays in NMC material production and delivery. Reduced economic activity and consumer demand during lockdowns slowed down the electric vehicle (EV) industry, which heavily relies on NMC batteries. Market instability resulted in price fluctuations for NMC materials, affecting profit margins. Investment uncertainty hindered the expansion of NMC production facilities, while some research efforts were redirected towards pandemic-related projects, delaying innovations. Transportation challenges further disrupted the global trade of NMC materials, collectively contributing to the pandemic's adverse effects on the NMC market.

LATEST TRENDS

"Sustainable Sourcing and Advanced Chemistries Lead the Way to Market Growth"

In the dynamic landscape of lithium nickel cobalt manganese oxide (NMC) batteries, notable trends have emerged. Sustainable sourcing of raw materials has taken center stage, driven by environmental concerns and regulatory pressures. Battery manufacturers are increasingly focusing on securing ethically and responsibly mined cobalt and nickel, reducing the carbon footprint of NMC production. Furthermore, advanced NMC chemistries are gaining traction. NMC 811, characterized by its higher nickel content, offers improved energy density and cost-efficiency, making it a favored choice for electric vehicle manufacturers. Meanwhile, research into NMC 9-5-5 formulations promises even greater energy density and longer cycle life, holding promise for the next generation of high-performance lithium-ion batteries. These trends underscore the industry's commitment to sustainability and continuous innovation in the NMC market.

lithium nickel cobalt manganese oxide market SEGMENTATION

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• By Type

Based on the type of market is classified as Nmc111, Nmc532, Nmc442, Others.

• By Application

Based on application, the market is classified as notebook, tablet PC, portable power, electric tool, and electric bicycle.

DRIVING FACTORS

"Electric Vehicle Boom to Influence Market Growth"

The rapid growth of the electric vehicle (EV) sector is a significant driving force behind the expanding lithium nickel cobalt manganese oxide (NMC) market. EVs rely on high-performance NMC batteries for their energy storage needs. As governments worldwide push for greener transportation solutions and automakers invest heavily in EV production, the demand for NMC batteries has surged. This trend is expected to continue as more consumers adopt electric vehicles, thereby fuelling the NMC market's growth.

"Energy Storage Revolution to Reshape the Market Growth"

The second key driver is the global push towards renewable energy sources. NMC batteries play a crucial role in energy storage systems, allowing for efficient harnessing and distribution of renewable energy. As renewable energy installations, such as wind and solar farms, expand to meet clean energy targets, NMC batteries are in high demand for grid stabilization and energy storage. This vital role in the transition to sustainable energy sources is a pivotal factor propelling the lithium nickel cobalt manganese oxide market forward.

RESTRAINING FACTOR

"Supply Chain Vulnerabilities and Raw Material Pricing Volatility to Restrain the Market Growth"

The lithium nickel cobalt manganese oxide (NMC) market faces a significant restraining factor in the form of supply chain vulnerabilities and raw material pricing volatility. The production of NMC cathode materials relies heavily on a consistent supply of key raw materials, including nickel, cobalt, and lithium. However, these materials often originate from geopolitically unstable regions, leading to supply disruptions due to factors like trade disputes or mining accidents. Additionally, the fluctuation in raw material prices poses a challenge for NMC battery manufacturers, impacting their production costs and profit margins. The uncertainty in the availability and pricing of essential materials underscores the need for diversification of supply sources and the development of alternative cathode chemistries to mitigate these market constraints.

lithium nickel cobalt manganese oxide market REGIONAL INSIGHTS

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"Asia Pacific to lead the Market due to Advanced Technology"

Asia Pacific has been the dominant region in the lithium nickel cobalt manganese oxide market share. This leadership is attributed to the region's robust production and supply of NMC cathode materials, driven by the thriving electric vehicle (EV) industry. China's massive EV market and extensive battery production infrastructure have made it a key player. NMC batteries, known for their energy density and performance, have become the preferred choice for EV manufacturers. While regional dynamics can evolve, Asia Pacific’s stronghold in the NMC market, especially China's, has been a defining factor in its global prominence.

KEY INDUSTRY PLAYERS

"Financial Players to Contribute Towards Expansion of the Market"

Financial institutions and investors are set to be instrumental in driving the expansion of the lithium nickel cobalt manganese oxide (NMC) market. Through capital investment and project financing, they can facilitate the lithium nickel cobalt manganese oxide market growth of battery production, research, and development. This backing is vital to meet the surging demand for NMC batteries, primarily fuelled by the electric vehicle (EV) sector. As the world shifts towards clean energy and EV adoption accelerates, financial players' support ensures a stable supply chain and technological advancements in NMC chemistry. Their involvement is pivotal in powering the NMC market's upward trajectory and promoting sustainable energy solutions.

List of Market Players Profiled

• AGC SEIMI CHEMICAL (Japan)
• L&F (South Korea)
• STL (Schlenk Technologie) (Germany)
• Umicore (Belgium)
• TODA KOGYO CORP (Japan)
• Changyuan Lico (China)
• Tianjiao Technology (China)
• Easpring Material Technology (China)
• 3M (USA)
• Shanshan Advanced Materials (China)
• Kelong NewEnergy (China)
• Tianli (China)
• CEC (China Energy Corporation) (Taiwan)
• BASF (Germany)
• Jinhe New Materials (China)
• Xiamen Tungsten (China)
• Tanaka Chemical (Japan)

REPORT COVERAGE

The lithium nickel cobalt manganese oxide (NMC) market is poised for significant growth, driven by the rising demand for NMC batteries, particularly in the electric vehicle industry. While Asia, led by China, has historically been a dominant player in this market, the contributions of financial institutions and investors are becoming increasingly crucial. Their investments and project financing will support the expansion of NMC production, research, and development, ultimately accelerating the transition to sustainable energy solutions. As the world continues its shift towards clean energy, the NMC market's future looks promising, with financial players playing a pivotal role in its evolution and success.