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The surging popularity of electric vehicles, attributed to their eco-friendly attributes, cost-efficiency, and enhanced performance, is a prime driver. EVs predominantly rely on lithium-ion batteries, wherein cathode active materials play a pivotal role.
The significant decline in lithium-ion battery costs in recent years is making them more cost-effective for both EV manufacturers and consumers. This cost reduction is further propelling the demand for EVs and, in turn, EV cathode active materials.
The market is witnessing a transition towards nickel-rich NMC cathode active materials due to their superior energy density. These materials are especially suitable for long-range EVs, driving their adoption.
Ongoing research by both researchers and battery manufacturers is leading to the development of innovative cathode active materials with enhanced performance characteristics. These innovations, including higher energy density, longer cycle life, and faster charging capability, are poised to foster market growth in the coming years.
Several technical challenges exist in the development of advanced EV cathode active materials with superior performance characteristics. For example, nickel-rich NMC cathode active materials, while offering higher energy density, exhibit lower stability and shorter cycle life compared to other materials. The high cost of EV cathode active materials contributes to the overall cost of EVs, potentially acting as a deterrent for some consumers considering EV adoption.
The global EV cathode active material market size was valued at USD xx billion in 2023 and is projected to reach USD xx billion by 2030, growing at a CAGR of xx% during the forecast period.
Governments around the world are offering incentives to promote the adoption of EVs, such as subsidies, tax breaks, and preferential loan rates. These incentives are making EVs more affordable and accessible to consumers, which is further driving the demand for EV cathode active materials.
Other battery technologies, such as solid-state batteries, are being developed. These technologies could potentially offer better performance and lower cost than lithium-ion batteries, which could pose a challenge to the EV cathode active material market in the future.
BASF, the German chemical giant, announced in August 2023 that it would invest €1 billion in EV cathode active materials. The investment will be used to expand BASF’s production capacity for nickel-rich NMC cathode active materials at its sites in Harjavalta, Finland, and Schwarzheide, Germany.
CATL, the Chinese battery maker, signed a deal in July 2023 to supply EV cathode active materials to Volkswagen Group. The deal is worth over €10 billion and is the largest deal for EV cathode active materials ever signed.
LG Chem, the South Korean battery maker, announced in June 2023 that it would develop new EV cathode active materials with higher energy density. The new cathode active materials are expected to be used in LG Chem’s next-generation batteries, which will have longer range and faster charging capability.
SK On, the battery subsidiary of SK Group, announced in May 2023 that it would build a new EV cathode active materials plant in the United States. The plant will be located in Georgia and is expected to start production in 2025.
Nickel-rich NMC cathode active materials offer higher energy density than other cathode active materials, making them ideal for long-range EVs. As a result, there is a growing demand for nickel-rich NMC cathode active materials in the market.
Major players in the EV cathode active material market, as well as new entrants, are investing heavily in research and development, production capacity expansion, and new sources of lithium and cobalt. This is a positive sign for the future growth of the market.
LFP cathode active materials are less expensive and more stable than NMC cathode active materials, making them a good option for low-cost EVs and energy storage applications. The demand for LFP cathode active materials is expected to increase in the coming years
High-nickel NMC cathode active materials offer even higher energy density than nickel-rich NMC cathode active materials. However, they are also more expensive and less stable. Researchers and battery manufacturers are working to develop high-nickel NMC cathode active materials with better performance and lower cost.
Cobalt is a key raw material used in EV cathode active materials. However, cobalt is expensive and its mining can have negative environmental and social impacts. Researchers and battery manufacturers are developing cobalt-free cathode active materials to reduce the cost and environmental impact of EV batteries.
BASF, the German chemical giant, has launched a new nickel-rich NMC cathode active material for long-range EVs. The new material, called CAM801, offers a higher energy density than conventional NMC cathode active materials, making it ideal for EVs with longer ranges.
CATL, the Chinese battery maker, has launched a new LFP cathode active material for low-cost EVs. The new material, called CTP LFP, is less expensive than NMC cathode active materials and offers a longer cycle life. This makes it a good option for low-cost EVs and energy storage applications.
LG Chem, the South Korean battery maker, has launched a new high-nickel NMC cathode active material for high-performance EVs. The new material, called NCMA 911, offers a very high energy density, making it ideal for high-performance EVs with long ranges.
SK On, the battery subsidiary of SK Group, has launched a new cobalt-free cathode active material for sustainable EVs. The new material, called LFP95, is made without cobalt, which is a key raw material used in EV cathode active materials that has a negative environmental and social impact.
Manufacturing improved battery chemistries will be critical. The procedure is hard, however, since five parameters must be improved at the same time: energy density, which affects vehicle range; power, which impacts accelerating and recharging characteristics; longevity; cost of raw materials; and protection. All five of these properties are affected by the electrode materials. The modern lithium-ion cathodes are complexation materials, which means they have channels packed with lithium batteries.
Samsung SDI is one of the leading developers of battery cathode active material technology in the market. It has been developing the NCA based cathode technology based on active cathode materials. Competing polymers, such as NCM and LMO, have lower power and energy density than NCA.
As a result, it is frequently utilized in power tools in the standard battery market. NCA compounds developed on Samsung SDI innovation outperform other cathode materials in terms of power and safety.
With both the remarkable NCA innovation, the High-Ni cathode substances with more than 88 percent nickel to power tool cylindrical batteries, demonstrating its excellent performances and manufacturing advanced technologies. In addition, High-Ni NCA cathode compounds containing 88 percent nickel are used in the upcoming Gen.5 Battery pack.
BASF Catalysts is part of the developing regime of cathode active materials for the market. The cathode active polymers product from BASF is well-suited to the changing needs of battery packs in automobile powertrains. BASF’s HED series of implementation cathode active materials (CAM) provides excellent power density, dependability, and performance for lithium-ion batteries used in electric cars.
BASF holds a license agreement from Argonne National Laboratories (ANL), the global leader in Nickel Cobalt Manganese (NCM) technologies, to develop and commercialise lithium-ion battery materials. The technique has the capability of providing highly energetic volume and compactness, as well as better chemical durability, to meet the needs of automobile powertrain battery packs.
1. Africa – Africa is a region rich in raw materials, and supplies the raw materials mainly for batteries in the electric vehicle industry. It is also key in supplying copper, neodymium and graphite which are crucial for the EV industry.
2. Europe – Europe is a major market for the sales of electric vehicles and a major manufacturing region for EVs and components. The region is also rich in hardware and software development talent for the electric vehicle industry thereby playing a big role in technological innovation. The region has upcoming foundries for semi-conductors and battery plants which will decrease the reliance of the region on Asia mainly China. Regulations are a major driving factor for the electric vehicle industry in this region.
3. Asia – Asia is currently the largest market for the sales of electric vehicles as well as the largest hub for the manufacturing for EVs and components, currently with a monopoly in semiconductor manufacturing. Due to high localization in this region, there is immense hardware and software talent pool and innovation present in the region. The region also has hardware manufacturing with dominance in various finished materials such as steel and aluminium which are exported to Europe and North America.
4. North America – North America is a large market for electric vehicles and a ground for technological innovation. There are various component manufacturing grounds, as well as upcoming battery plants and semiconductor manufacturing that will enable North America to improve its EV market. Efforts are underway to develop a more localized supply chain including localized manufacturing and increasing recycling.
5. Latin America and ROW – Chile and Argentina, are key suppliers of lithium, a crucial component for EV batteries. Latin America has reserves of copper and other essential materials for EVs. Currently, it is a small market for EVs but manufacturing of EVs is expected to increase in this region.
