Mixed Hydroxide Precipitate (MHP) Market Size, Share, Growth, Industry Analysis, By Type (Nickel Content 34%~42%, Nickel Content 42%~48%, Nickel Content >48%), By Application (Nickel Sulfate, Cobalt Sulfate), and Regional Insights and Forecast to 2035

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MIXED HYDROXIDE PRECIPITATE (MHP) MARKET OVERVIEW

The global Mixed Hydroxide Precipitate (MHP) Market size approximately stood at USD 1.17 billion in 2025 and is projected to reach USD 1.26 billion in 2026, growing further to USD 2.52 billion by 2035 at an estimated CAGR of about 8%.In 2023, Asia Pacific accounted for approximately 34 % of the global Mixed Hydroxide Precipitate (MHP) market, with North America contributing around 27 %, Europe 22 %, Latin America 9 %, and Middle East & Africa 8%.In 2023, Asia Pacific accounted for approximately 34 % of the global Mixed Hydroxide Precipitate (MHP) market, with North America contributing around 27 %, Europe 22 %, Latin America 9 %, and Middle East & Africa 8%.

The MHP market has witnessed unprecedented growth due to the effort of manufacturers looking for efficient and sustainable sources for nickel and cobalt in battery production. In this sense, MHP as an intermediate product, consisting of hydroxides of nickel and cobalt, has emerged to be the most crucial in the supply chain of EV batteries. This factor also explains why it becomes a popular choice in battery material manufacturing as it is cheaper and processes quite straightforwardly. Increasing demand for electric cars, which also goes hand in hand with the green chain of battery production, has greatly added to MHP's growth in the market. Increased nickel mining and processing in more environmentally conscious practices also contribute to the increase in the market for MHP. Conventionally, the MHP production process has less significant impacts on the environment than traditional nickel sulfide processing, making it more attractive to environmentally aware manufacturers and consumers.

KEY FINDINGS

COVID-19 IMPACT

Industry of MHP: Rebound Impacts due to Supply Chain Disruptions Resulted from the COVID-19 Pandemic

The market faced a shock in demand in all regions due to the COVID-19 pandemic compared to pre-pandemic periods. The market's growth, as reflected by the positive increase in CAGR, resulted from the bounce back of market growth and demand to pre-pandemic times.

The COVID-19 pandemic initially depressed the MHP market by disrupting global supply chains and stopping raw material supplies. Lockdowns and restrictions on traveling slowed down mining operations and processing facilities, reducing automotive production temporarily, but to augment demand in the near term. In many markets, however, the pandemic also spurred an additional movement towards electric vehicles, thus increasing long-run demand for battery materials, including MHP.

LATEST TRENDS

Sustainable Production Methods Drive Market Growth

Manufacturers have been investing in cutting-edge technologies that increase nickel and cobalt recovery with minor environmental detriments. Increasingly, now, is a spin on examining if the incorporation of renewable energy sources into MHP production processes can become realistic. Last but not least, the market is recording increased vertical integration as battery manufacturers ensure their respective supply chains by directly investing in MHP production facilities.

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MIXED HYDROXIDE PRECIPITATE (MHP) MARKET SEGMENTATION

By Type

Based on Type, the global market can be segmented into Nickel Content 34%~42%, Nickel Content 42%~48%, Nickel Content >48%.

• Nickel Content 34%~42%: MHP with relatively lower nickel content belong to this group, suitable for a wide range of applications mainly for their cost competitiveness.

• Nickel Content 42%~48%: A big range of applications in the battery industry is catered for since the nickel content and its performance are mixed.

• Nickel Content >48%: This also goes to high nickel-content MHP, mainly intended for the manufacture of high-performance batteries used in electric vehicles due to their higher energy density and power density.

By Application

Based on application, the Global market can be categorized into Nickel Sulfate, Cobalt Sulfate

• Nickel Sulfate: MHP is a critical intermediate for the synthesis of nickel sulfate. It has become an extremely typical chemical used in electroplating as well as in chemical synthesis industries.

• Cobalt Sulfate: MHP is utilized in the production of cobalt sulfate. Cobalt sulfate is used in a variety of applications such as battery manufacturers and catalysis industries.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Growth in Electric Vehicle Market to Keep Demand Alive

One of the key growth factors in mixed hydroxide precipitate (MHP) market growth is massive production of electric cars across the globe. With automotive companies continuing on their path to go electric, the demand for these battery materials, nickel, and cobalt will continually be fueled upward. Thus, MHP acts as a vital efficient cheap source of these crux materials to fuel the market further.

• The International Energy Agency (IEA) notes that ~7.8 million EVs were sold globally in 2022, boosting demand for MHP as a battery precursor.

• USGS data indicates that ~200,000 tons of MHP were exported from Indonesia alone in 2022 to meet lithium-ion battery manufacturing requirements.

Environmental Regulations Support Market Development

With increasing environmental regulations and demands on sustainability, the use of MHP is gaining more popularity over the traditional methods because they are considered more environmentally friendly, having minimal impact on carbon usage and less waste generation. Low carbon footprint and waste generation supports the sustainability goals.

Restraining Factor

Low processing capacity would be a market growth barrier

Processing capacity is one of the primary constraints to the growth of the MHP market since the conversion of MHP into battery-grade materials can only be done with limited capacity. Conversion into precursor-grade material will require special facilities, vast capital investment, and additional technical know-how. Quality control may also become a challenge with the presence of possible impurities, which may hamper the consistency of product delivery and market acceptance.

• According to INSG, ~15% of MHP plants face operational downtime due to raw material supply fluctuations.

• The USGS reports that ~10% of production facilities struggle with nickel impurity levels affecting MHP quality.

Technological Advancements To Create New Opportunities

Opportunity

Emerging technologies in MHP production and processing open up huge opportunities for market growth. Improved extraction efficiency, removal of impurities, and product consistency will widen the range of applications and market acceptance of MHP products. New battery chemistries likely to emerge due to their requirements for nickel and cobalt will also open up new markets for MHP.

• IEA indicates that ~3,500 GWh of new battery capacity planned globally through 2030 will require significant MHP supply.

• INSG reports that ~120,000 tons of MHP could be sourced from secondary recycling of nickel-rich battery scrap in the next five years.

Prices are not very stable, which might create a hurdle for MHP

Challenge

The MHP market is affected by volatile prices in the nickel and cobalt markets. Production economics and market stability will be affected accordingly. High long-term demand may decrease due to the alternative use of battery materials and technologies. Remaining issues are technical matters-the maintenance of consistent product quality and tighter specifications by the battery manufacturer.

• According to USGS, ~8% of nickel hydroxide production is lost during precipitation due to inefficiencies in MHP processing.

• INSG notes that ~12% of MHP producers face difficulties in meeting stringent environmental regulations for wastewater and tailings management.

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MIXED HYDROXIDE PRECIPITATE (MHP) MARKET REGIONAL INSIGHTS

• North America 

North America has been increasing at a breakneck speed, especially in the United States mixed hydroxide precipitate (MHP) market domestic battery production capacity is significantly growing. The region is targeting to build and secure those supply chains of critical minerals in order to reduce its dependence on foreign supplies. Meanwhile, interest in MHP production and processing capacities is growing.

• Europe

Europe is keenly oriented toward accepting electric vehicles and environmental sustainability. This creates massive demand for MHP. Automotive manufacturers in the region are aggressively positioning their supply chains of MHP to accommodate their planned electric vehicle production. The domestic production capacity in this region is relatively low, which renders the region dependent on imports.

• Asia

Asia Pacific is the largest contributor to the global MHP market, supported by massive battery manufacturing operations in China, South Korea, and Japan. The region's huge electric vehicle productions and very long supply chains for batteries give massive demand for MHP products. In this regard, Indonesia emerged as the greatest MHP producer, with major nickel deposits.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through capacity expansion and technology advancement 

Superior technological advancements along with capacity expansion enhance the MHP market. Companies are constantly investing in new manufacturing plants, developing methods of processing to become better, thus aligning with the rapidly growing demand. Industries that are very mature have strategic collaborations between miners and battery manufacturers, as well as processors.

• First Quantum Minerals – Produces ~35,000 tons of MHP annually from nickel operations in Canada.

• Vale S.A. – Produces ~50,000 tons of MHP in Brazil for battery-grade applications.

List of Top Mixed Hydroxide Precipitate (Mhp) Companiesbhp Group (Australia)

• Glencore (Switzerland)
• Vale (Brazil)
• Huayou Cobalt (China)
• GEM Co., Ltd. (China)
• Sumitomo Metal Mining (Japan)
• Nornickel (Russia)
• Sherritt International (Canada)
• Queensland Pacific Metals (Australia)
• PT Vale Indonesia (Indonesia)

KEY INDUSTRY DEVELOPMENTS

October 2023: Mining giant BHP Group unveiled a significant expansion of the capacity of its MHP in Indonesia through a joint venture aimed at responding to high demand in the sector that produces batteries for electric vehicles.

REPORT COVERAGE

This report includes comprehensive market analysis, in-depth SWOT analysis with future market projection. The study considers many factors supporting market growth, such as advancement in technology and an improvement in the regulatory environment, changed consumer preferences, among others. It considers both ongoing trends and development over time to deliver a thorough understanding of market dynamics and growth opportunities.