The cathode material for automotive lithium-ion battery market will touch USD 3,777.8 million, growing at a 6.9% compound annual growth rate, by 2030.
The growth of this industry is because of the rising acceptance of EVs, constant reduction in the cost of cathode materials, and development of the energy storage battery sector.
Improvements in battery technology and vehicle electrification have assisted significantly in the shifting landscape of this industry. Presently, batteries with cobalt (NMC/Nickel–Coal–Aluminum [NCA]) are chosen because of their high energy density.
The rising acceptance of EVs globally is the most significant reason contributing to the high requirement for lithium-ion batteries, which, in order, is boosting this industry expansion.
The lithium–iron phosphate (LFP) category, on the basis of type, led the industry in the past few years. Moreover, this category will continue to be a significant contributor to the industry in the coming years.
This can be mainly because of the greater energy density and the lower self-heating rate of the material than others.
The battery electric vehicle (BEV) category, based on vehicle technology, will be the largest contributor to the cathode material for automotive lithium-ion battery market. Moreover, this category will also propel at the fastest rate in the years to come. The dominance is primarily because the lithium-ion battery integration rate is much greater in these automobiles.
Moreover, this is because the average battery capacity of a battery electric vehicle has to be much greater than plug-in hybrid electric vehicles and hybrid electric vehicles.
The passenger car category, based on vehicle type, is likely to advance at the fastest rate in the years to come. This will be mainly because of the robust push by the governments of the U.S. and China, to produce new-energy cars, and the growing need for completely electric passenger cars with high-range-per-charge features.
APAC was the largest contributor to the industry in recent years, and it will remain the largest throughout this decade. This can be mainly because of the high manufacturing and sales of EVs in China, which alone hold more than half the share in APAC. Furthermore, China will lead the industry in APAC in the years to come.
LAMEA is likely to advance at the fastest compound annual growth rate in the years to come. This can be mainly because of the surge in production as well as the sales of electric vehicles in this region.
It is because of the rise in the adoption of electric vehicles, the cathode material for automotive lithium-ion battery industry will continue to advance in the years to come.
