Nickel Cobalt Manganese Market size (2023 – 2030)

The Global Nickel Cobalt Manganese Market was valued at USD 2.91 Billion and is projected to reach a market size of USD 8.3 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 16.2%.

The combination of Nickel, Cobalt, and Manganese is an electrode that is used to manufacture Lithium-ion batteries. It makes the battery a very suitable and powerful lithium-ion system that can be designed for both power cell and energy applications. The combination of Nickel Manganese Cobalt Oxide exhibits remarkable thermal stability. Lithium-ion batteries that utilize NMC demonstrate enhanced capacity, cycle rates, and power capabilities. Additionally, NMC-containing batteries showcase a minimal self-heating rate, which makes them highly suitable for applications like electric vehicles and power tools. These cathode materials are employed in various battery types, including power batteries, polymer batteries, batteries with polymer shells, and cylindrical batteries, among others.

NMC batteries initially had a composition of Nickel (33%), Cobalt (33%), and Manganese (33%), commonly referred to as NMC111 or NMC333. However, evolving technology and shifting market demands prompted the development of innovations of NMC to accommodate higher energy density and reduced cobalt content. Many of these innovations featured increased Nickel proportions coupled with reduced Cobalt and Manganese content.

The market's expansion can be linked to the rising need for electric vehicles and portable power gadgets. The commendable energy density and thermal stability provided by NMC111 render it well-suited for integration into electric vehicles and portable power devices. Furthermore, the increasing focus on renewable energy investment, driven by environmental concerns, has compelled governments globally to implement stringent emission regulations. This, in turn, is giving a boost to the growth of the market.

Global Nickel Cobalt Manganese Market Drivers:

Increasing demand for Electric vehicles has been bolstering the Global Nickel Cobalt Manganese Market.

There has been a drastic increase in the electric vehicle market owing to environmental implications of the pollution generated by the internal combustion engine, fluctuating prices of crude oil, and an increase in disposable income among consumers. This has boosted the Nickel Cobalt Manganese market as they are heavily used as cathodes in the manufacturing of batteries. Various major car companies have also started focusing on manufacturing electric vehicles to meet and generate good revenue from the increasing demand of the market. This is an important factor that will lead to the growth of the Global Nickel Cobalt Manganese Market.

Stringent norms by the various governments across the world will also contribute to the growth of the Nickel Cobalt Manganese Market.

Governments across the world are implementing many laws to restrict carbon emissions from various industries and are also enforcing penalties upon industries that are not adhering to government laws. This has pushed industries to find alternatives to fossil fuels and using electric sources and manufacturing electric products is one of them that uses Nickel Cobalt Manganese batteries. Governments have been incentivizing the companies that are saving carbon emissions and subsidizing the materials needed for manufacturing electric batteries which is going to play a huge factor in the growth of the Nickel Cobalt Manganese Market during the forecast period.

Global Nickel Cobalt Manganese Market Challenges:

Lithium Nickel Cobalt Manganese iron batteries face fierce competition with alternatives like lithium iron phosphate, lithium cobalt oxide, and lithium manganese oxide. Rising concerns about the environmental risks associated with cobalt extraction and manufacturing for raw material usage are projected to curtail market expansion. The scarcity and cost constraints of raw materials, particularly in less developed and emerging economies, are anticipated to hinder the growth trajectory of the NCM market.

Global Nickel Cobalt Manganese Market Opportunities:

Rapid growth in research and development endeavors aimed at improving battery efficacy will push the demand for important cathode materials like NCM. The shift toward high-nickel NCM cathodes, such as NCM 811 (consisting of 8 parts nickel, 1 part cobalt, and 1 part manganese), will open avenues for manufacturers to create and introduce advanced NCM cathode materials featuring increased nickel content. This transition seeks to curb cobalt usage due to environmental considerations while simultaneously affording emerging economies the opportunity to transition away from conventional fuels. The growing advancement in battery technology aimed at enhancing battery performance will furnish battery material manufacturers worldwide with growth prospects. These advancements not only provide an avenue for improved and better battery efficiency but also offer promising business opportunities in the coming future.

COVID-19 Impact on Nickel Cobalt Manganese Market:

The pandemic hurt the Nickel Cobalt Manganese market by causing disruptions in the supply chain for raw materials and components required for NCM battery production which led to potential shortages. The automotive sector which is a huge market for the NCM battery faced a temporary halt due to lockdowns and restrictions that decreased its demand and caused a slowdown in NCM battery manufacturing. The pandemic caused worldwide economic uncertainty that influenced the market as investors and companies became hesitant to invest in such a volatile market which affected the expansion of NCM battery production capacity. In the post-pandemic phase, the NCM market has shown recovery and resilience as the demand for electric vehicles has increased significantly, and the government's environmental initiatives have gained considerable traction. Hence, the overall effect of the pandemic on the Nickel Cobalt Manganese market has been moderate.

Global Nickel Cobalt Manganese Market Recent Developments:

• In August 2023, Solaredge initiated the production of its latest NMC cells within its own South Korean factory. These cells are strategically engineered to broaden the spectrum of applications compatible with the company's storage solutions. Solaredge aims to enhance the performance of its energy storage offerings across private, commercial, and utility sectors. Notably, the newly introduced cells boast an extended service life of up to 8,000 cycles, surpassing the longevity of the previously employed technology.

• In July 2023, Tata Group of India made a substantial commitment of £4 billion for the establishment of a new battery cell gigafactory in the United Kingdom. This manufacturing facility is designed to possess a massive capacity of 40 GWh. Situated in Somerset, the forthcoming facility is poised to manufacture advanced, sustainable battery cells and packs, catering to both mobility and energy storage applications. According to the company's statement, production is slated to commence in 2026. Tata's envisioned cell plant will be equipped to produce lithium ferro-phosphate (LFP) and nickel-manganese-cobalt (NMC) chemistry cells. Additionally, the group is steadfast in its aim to power the cell plant using renewable energy sources for its entirety.

• In April 2023, EST-Floattech introduced an innovative battery storage system that uses nickel-manganese-cobalt (NMC) technology, which is designed specifically for maritime applications. This innovative system is versatile, catering to a wide variety of onboard functions, including propulsion, peak shaving, auxiliary power, and more. Its application extends across diverse maritime sectors, that include niches like ferries, aquaculture power provision, container ships, inland shipping tankers, and similar domains.

NICKEL COBALT MANGANESE MARKET REPORT COVERAGE:

Global Nickel Cobalt Manganese Market Segmentation: By Product Type

• NCM111

• NCM333

• NCM532

• NCM622

• NCM442

• NCM532

• NCM811

• NCM955

NCM622 (60% Nickel, 20% Cobalt, 20%Manganese) has dominated the segment by holding the largest market share during 2022 and is estimated to generate a revenue of more than a billion dollars during the forecast period. NCM811 (80% Nickel, 20% Cobalt, 20% Manganese) is also growing at a faster rate and is estimated to hold a significant revenue share in the coming years owing to its high-content nickel and low-content cobalt. Another noteworthy variant, NCM955 (comprising 90% Nickel, 5% Cobalt, and 5% Manganese), holds considerable promise due to its even lower cobalt content than NCM822. Although in its initial stages, NCM955 is making headway into the market, unveiling its potential.

Global Nickel Cobalt Manganese Market Segmentation: By End-Use Industry

• Automotive

• Consumer Electronics

• Renewable Energy Storage

• Aerospace

• Medical

• Others

The automotive sector has dominated the segment by holding the highest market share in 2022. This is due to the significant surge in electric vehicle production and sales, driven by efforts to combat climate change, which stands as a prominent driver for the increasing adoption of these materials within the automotive sector. Globally, various governments are directing their attention toward implementing measures for eco-friendly and emission-free transportation systems. This deliberate focus is expected to contribute to a notable surge in the demand for lithium-ion batteries during the forecast period. There has also been an increasing adoption of NCM batteries in renewable energy sector storage which has made it second highest growing market in the segment.

Global Nickel Cobalt Manganese Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

The Asia-Pacific is the most dominant region of the segment and it holds the highest market revenue in 2022. Nations across the Asia Pacific region are actively transitioning towards sustainable energy practices, prompting a concentrated effort to establish self-sustaining ecosystems for the production of NCM batteries within their respective countries. This region has transformed into a compelling destination for the automotive industry, progressively evolving into a central hub for automobile manufacturing. Recent advancements in infrastructure and ongoing industrialization endeavors, coupled with the rising purchasing capacity of the populace, have been increasing the demand for automobiles and consumer electronics.

Global Nickel Cobalt Manganese Market Key Players:

1. BASF SE

2. Umicore

3. The 3M Company

4. Asahi Kasei

5. Solaredge

6. The Tata Group

7. Tanaka Chemical Corporation

8. EST-Floattech

9. Xiamen TOB New Energy Technology Co. Ltd.

10. Johnson Matthey