Nickel Cobalt Manganese Market to Reach US$ 67.60 Bn by 2031 Fueled by Surging Demand in EV Batteries

✅Strong 15.3% CAGR Driven by Growth in Electric Vehicles and Energy Storage Systems

According to the latest study by Persistence Market Research, the global Nickel Cobalt Manganese (NCM) market is poised to grow from US$ 24.95 billion in 2024 to US$ 67.60 billion by 2031, reflecting a robust CAGR of 15.3%. This significant growth is primarily driven by the rising adoption of electric vehicles (EVs), which heavily depend on lithium-ion batteries composed of nickel, cobalt, and manganese. The shift toward green energy and sustainable transportation solutions is intensifying demand for high-energy-density battery chemistries like NCM, which balance cost, energy capacity, and thermal stability.

The nickel cobalt manganese market plays a critical role in the global energy transition, especially with its pivotal application in the production of cathode materials for lithium-ion batteries. As the electric vehicle industry continues to expand, automakers and battery manufacturers are investing heavily in NCM technology due to its energy density advantages over other chemistries. Additionally, consumer electronics, renewable energy storage systems, and industrial tools further boost the demand for NCM materials.

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Market statistics indicate a dramatic rise in NCM consumption, with automotive batteries accounting for the largest market share. Among these, NCM 811 and NCM 622 chemistries are gaining preference for their higher nickel content, which enhances energy density and reduces cobalt dependency. Asia Pacific emerges as the leading region in this market, owing to its dominance in battery manufacturing and strong government backing for EV production, especially in China, South Korea, and Japan. The availability of raw materials and growing investments in refining capabilities make Asia Pacific a global hub for NCM supply chain activities.

✅Key Market Insights

➤ NCM cathodes offer high energy density and long cycle life, making them ideal for EVs and energy storage systems.
➤ NCM 811 chemistry is gaining traction due to its reduced cobalt content and improved cost efficiency.
➤ Asia Pacific leads global demand, driven by large-scale EV production and battery manufacturing capacity.
➤ Cobalt supply challenges are prompting companies to optimize NCM formulations for sustainability.
➤ Strategic collaborations between automakers and battery producers are shaping market dynamics.

✅What is driving the demand for Nickel Cobalt Manganese in batteries?

The demand for Nickel Cobalt Manganese is primarily driven by the booming electric vehicle (EV) industry and the global push for renewable energy storage solutions. NCM-based cathodes offer the ideal balance of energy density, safety, and cost-effectiveness required in lithium-ion batteries. The rising preference for high-performance battery chemistries like NCM 622 and NCM 811 stems from their ability to extend EV range, reduce charging time, and lower the cost per kilowatt-hour. Additionally, governments worldwide are supporting battery supply chain development through incentives and regulations, further boosting NCM consumption in next-gen energy technologies.

✅Market Dynamics

Market Drivers:
The primary driver of NCM market growth is the global surge in electric vehicle adoption. Automakers are under increasing pressure to meet emissions targets and consumer demand for longer-range vehicles, both of which depend on advanced battery chemistries. In addition, the renewable energy sector's requirement for efficient energy storage systems is boosting demand for high-performance battery materials like NCM.

Market Restraining Factor:
One of the key challenges facing the NCM market is the volatile and limited supply of cobalt, a critical component with most reserves concentrated in geopolitically sensitive regions like the Democratic Republic of Congo. This reliance on limited sources raises concerns over supply security and ethical sourcing. Furthermore, high material costs and environmental concerns associated with mining and refining can hinder long-term market sustainability.

Key Market Opportunity:
A major opportunity lies in research and development of cobalt-reduced or cobalt-free NCM formulations. By focusing on high-nickel compositions such as NCM 811, manufacturers can reduce dependency on scarce materials while maintaining battery performance. Additionally, expanding production and refining capacity in new regions, particularly in North America and Europe, will support localization and supply chain resilience.

✅Market Segmentation

The nickel cobalt manganese market is segmented based on product type, application, and end-use industry. By product type, the market is classified into NCM 111 (1:1:1), NCM 523, NCM 622, and NCM 811, each with varying ratios of nickel, cobalt, and manganese. Among these, NCM 811 is witnessing the fastest growth due to its higher nickel content, which enhances energy storage capacity and lowers reliance on expensive cobalt. NCM 622 is also popular for balancing energy density and thermal stability.

In terms of applications, the automotive battery segment dominates, accounting for a majority of NCM demand. NCM cathodes are widely used in lithium-ion batteries that power electric vehicles due to their long cycle life and safety profile. The consumer electronics segment is another key application area, where NCM materials support compact, high-capacity batteries used in smartphones, laptops, and power tools. The stationary energy storage market is emerging as a strong application, particularly for grid stabilization and renewable energy integration.

✅Regional Insights

Asia Pacific dominates the global NCM market, both in terms of consumption and production. Countries like China, Japan, and South Korea lead the region's battery manufacturing capacity, supported by strong government policies, advanced infrastructure, and major OEM and battery partnerships. China, in particular, is investing heavily in the entire EV battery supply chain, from mining and refining to cathode manufacturing and battery assembly.

North America and Europe are rapidly catching up due to policy-driven momentum toward EV adoption and energy security. The U.S. Inflation Reduction Act and the EU Battery Directive are spurring investments in local NCM supply chains. Companies are setting up gigafactories and forming strategic alliances to minimize dependency on Asian suppliers. Meanwhile, Latin America and Africa are expected to play vital roles in the upstream segment due to their rich reserves of nickel and cobalt.

✅Competitive Landscape

The competitive landscape is shaped by vertically integrated players, global mining companies, battery manufacturers, and chemical processors. Companies are focusing on securing raw material access, improving processing efficiency, and forming long-term supply contracts with automakers and energy companies.

Company Insights

✦ Umicore
✦ BASF SE
✦ Sumitomo Metal Mining Co., Ltd.
✦ LG Energy Solution
✦ Samsung SDI Co., Ltd.
✦ GEM Co., Ltd.
✦ Zhejiang Huayou Cobalt Co., Ltd.
✦ Johnson Matthey
✦ Nichia Corporation
✦ Targray Technology International Inc.

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✅Key Industry Developments

In recent years, major players have focused on expanding cathode material production capacity to meet surging global demand. For instance, Umicore announced a large-scale NCM production facility in Poland, aiming to supply Europe's fast-growing battery sector. Similarly, LG Chem has invested in nickel and cobalt processing facilities to ensure long-term access to critical resources.

Several companies are entering strategic partnerships with EV manufacturers and mining firms to establish closed-loop supply chains. Tesla, for instance, has secured long-term contracts for NCM cathode materials and is actively investing in refining and recycling initiatives. Such developments are expected to stabilize supply and reduce environmental impact while securing competitive advantage.

✅Innovation and Future Trends

Future innovation in the NCM market centers on cobalt reduction and performance enhancement. Research is focused on developing high-nickel, low-cobalt NCM compositions like NCM 811 and even NCM 9.5.5 to improve energy density while minimizing reliance on expensive and ethically challenged cobalt. Solid-state batteries incorporating NCM cathodes are also being explored for greater safety and faster charging.

Sustainability is another major trend shaping the market's future. Players are working on recycling technologies to recover valuable metals from end-of-life batteries, reducing the need for raw material extraction. Digital supply chain management, blockchain tracking, and AI-enabled quality control are expected to transform how NCM materials are sourced, processed, and distributed. These innovations aim to make the NCM market more resilient, efficient, and environmentally responsible in the years ahead.

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