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 From 2025 To 2035

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LITHIUM NICKEL COBALT MANGANESE OXIDE MARKET OVERVIEW

The global lithium nickel cobalt manganese oxide market stood at USD 5.48 billion in 2025 and is set to expand to USD 5.76 billion in 2026, eventually reaching USD 8.99 billion by 2035, driven by a CAGR of 5.09%.

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.

KEY FINDINGS

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.

• According to the U.S. Department of Energy (DOE), battery manufacturers have increased the nickel content in lithium nickel cobalt manganese oxide (NCM) cathodes from 60% to nearly 80% in recent years to enhance energy density. This transition has improved vehicle range performance by approximately 25%, making high-nickel NCM811 compositions a dominant choice for electric vehicle (EV) applications.

• According to the European Environment Agency (EEA), over 18% of the total lithium-ion battery waste generated in 2023 contained NCM materials. The European Union has implemented recycling initiatives targeting a 90% cobalt and 70% nickel recovery rate by 2030, driving demand for efficient recycling technologies that can recover valuable metals from NCM-based batteries.

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LITHIUM NICKEL COBALT MANGANESE OXIDE MARKET SEGMENTATION

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.

• According to the International Energy Agency (IEA), global electric vehicle (EV) sales exceeded 14 million units in 2023, requiring over 1.2 million tons of lithium-ion battery cathode materials, a large portion of which used NCM chemistry. Government incentives in over 40 countries are promoting adoption of sustainable battery materials like NCM to support net-zero emission goals.

• According to the Ministry of Industry and Information Technology (MIIT) of China, the country produced over 72% of the world’s NCM battery cells in 2023, supported by state subsidies for local manufacturers. This strong policy backing has led to a 35% increase in production efficiency through advanced coating and synthesis technologies.

RESTRAINING FACTORS

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.

• According to the U.S. Geological Survey (USGS), over 70% of global cobalt supply originates from the Democratic Republic of Congo, where political instability has disrupted exports multiple times since 2020. These fluctuations can raise the average production cost of NCM materials by 15–20%, affecting supply reliability for battery producers.

• According to the United Nations Environment Programme (UNEP), extraction and processing of cobalt and nickel from ores generate about 9.5 metric tons of CO₂ per ton of refined material. This has prompted several governments to introduce stricter emission control regulations, which can increase overall production costs by nearly 12%.

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LITHIUM NICKEL COBALT MANGANESE OXIDE MARKET REGIONAL INSIGHTS

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.

• AGC SEIMI CHEMICA (Japan): According to the Japan Ministry of Economy, Trade and Industry (METI), AGC SEIMI CHEMICA has expanded its NCM precursor production capacity by 28% in 2024 to meet the growing demand for high-energy-density batteries. The company also achieved a 15% reduction in energy consumption per ton of material produced through process optimization.

• L&F Co., Ltd. (South Korea): According to the Korea Battery Industry Association (KBIA), L&F increased its export volume of NCM cathode materials by 42% in 2023 compared to the previous year. The firm has also invested in advanced granulation technology that enhances cathode stability, improving cycle life by approximately 30% in EV battery applications.

List of Top Lithium Nickel Cobalt Manganese Oxide Companies

• 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.