Li ion Battery Ternary Precursor Market Massive Growth opportunity Ahead

The global Li-ion battery ternary precursor market reached USD 13.9 billion in 2024, with expectations to hit USD 48.3 billion by 2034, growing at a CAGR of 13.5% over the forecast period.

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Ternary precursors are typically synthesized as hydroxides or carbonates of nickel, cobalt, and manganese, forming intermediate materials that are later calcined to produce cathode active materials (CAMs). These CAMs, especially NCM (Ni-Co-Mn) and NCA (Ni-Co-Al), are essential in powering EVs, e-bikes, drones, smartphones, and grid storage systems.

The growing emphasis on energy density, charge speed, and cycle life has positioned high-nickel ternary chemistries as the most desired choice for advanced battery applications.

Key Market Drivers
a. Exponential Growth in EV Manufacturing
EV adoption is accelerating globally, driven by emission mandates and incentives. High-nickel NCM and NCA cathodes - derived from ternary precursors - are key to achieving long range and fast charging capabilities.
b. Government Incentives and Battery Investments
Global investments in battery gigafactories and localization initiatives (e.g., U.S. IRA, EU Battery Regulation, China's NEV policy) are generating unprecedented demand for locally sourced precursors.
c. Rising Energy Storage Projects
Grid-scale and commercial energy storage systems are becoming a mainstay for renewable energy integration. Ternary-based batteries offer high power output and longevity required for such deployments.
d. Shift to High-Nickel Chemistries
Battery manufacturers are prioritizing NCM811, NCM90, and NCA materials for their energy density advantages, directly boosting demand for nickel-rich precursors.

Key Restraints and Challenges
a. Volatility in Raw Material Prices
Cobalt and nickel prices are highly volatile, affecting production cost predictability and margins for precursor manufacturers.
b. Environmental and Ethical Concerns
Cobalt sourcing, particularly from regions like the DRC, raises concerns about sustainability, child labor, and environmental damage - prompting pressure for ethical supply chains.
c. Complex Manufacturing Requirements
Ternary precursor production requires precision in composition, purity, and morphology control. This increases capital and technical entry barriers.
d. Growing Popularity of LFP Batteries
Lithium iron phosphate (LFP) chemistries, free of nickel and cobalt, are gaining momentum in budget EVs and energy storage - posing competition to ternary precursors in specific applications.

Opportunities & Trends
a. Vertical Integration by OEMs and Battery Firms
EV giants and cell manufacturers are investing in precursor production lines, creating secure in-house supply of key materials and reducing dependency on third parties.
b. Recycling of Spent Batteries
Recycling companies are extracting Ni, Co, and Mn from end-of-life batteries and converting them into new precursors - supporting a circular battery economy and reducing environmental impact.
c. Localized Precursor Production
Driven by geopolitical risks and subsidy-linked manufacturing incentives, countries are investing in regional precursor plants, especially in North America and Europe.
d. Solid-State and High-Voltage Applications
As solid-state batteries evolve, demand for ultra-pure, thermally stable precursors with minimal impurity profiles is growing rapidly.

Market Segmentation
By Chemistry
• NCM 111 (1:1:1)
• NCM 523 (5:2:3)
• NCM 622 (6:2:2)
• NCM 811 (8:1:1)
• NCA (Nickel-Cobalt-Aluminum)
• Others (custom high-Ni or Co-free variants)
NCM 811 and NCA segments are leading the market in terms of value due to higher nickel content and energy density.

By Application
• Electric Vehicle Batteries (BEVs, PHEVs)
• Energy Storage Systems (Utility & Commercial)
• Consumer Electronics (Smartphones, Laptops, Power Tools)
• Industrial Machinery
• Aerospace and Military Batteries
EV batteries represent the largest application, while ESS is the fastest-growing subsegment.

By End-User
• Battery Manufacturers
• EV OEMs (Vertically Integrated)
• Cathode Material Producers
• Recyclers & Refiners
• Energy Storage Integrators

By Region
• Asia Pacific
• Europe
• North America
• Latin America
• Middle East & Africa

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Regional Insights
Asia Pacific - Global Hub for Precursor Manufacturing
Asia Pacific holds over 65% market share, led by China, South Korea, and Japan. China dominates in both capacity and supply chain integration. Companies like CNGR, GEM, and Brunp (CATL) are aggressively scaling capacity and securing raw materials globally.
Korea and Japan specialize in high-purity, export-grade precursors for global OEMs and battery firms.
Europe - Rising Battery Supply Chain Localization
The EU is investing heavily in building battery supply chain independence, including precursor production facilities in Germany, Poland, Hungary, and Sweden. BASF and Umicore are leading players in the region.
North America
Driven by the Inflation Reduction Act, the U.S. is fast-tracking precursor production with funding for domestic battery material supply. Companies are forming joint ventures with Asian firms to kickstart local manufacturing.
Latin America
While primarily known for lithium mining, the region is exploring value chain extension into precursor and cathode production, especially in Chile and Argentina.
Middle East & Africa
Limited precursor manufacturing currently, but Africa's cobalt and nickel mining resources make it a strategic upstream contributor to global supply chains.

Competitive Landscape
The ternary precursor market is dominated by Asian players, though global chemical and battery companies are entering via strategic investments and joint ventures.

Key Players:
• Umicore
A Belgian materials giant investing heavily in EU-based precursor and cathode facilities, supplying to major OEMs including BMW and VW.
• CNGR Advanced Materials
One of the world's largest precursor producers, based in China. Aggressively expanding in Indonesia and Europe.
• GEM Co., Ltd.
Chinese leader focusing on recycled Ni, Co, and Mn materials converted into high-nickel precursors.
• Brunp Recycling (CATL Subsidiary)
Vertically integrated recycler and precursor producer, tightly linked to CATL's supply chain.
• Zhejiang Huayou Cobalt
A key player in upstream cobalt mining and precursor synthesis, with projects in China, Indonesia, and Africa.
• Kelong New Energy
Specializing in tailored precursor chemistries for next-gen cathode requirements.
• Jinchuan Group
Major nickel and cobalt mining and processing firm expanding into battery precursor production.
• L&F Co., Ltd.
South Korea's top exporter of high-Ni precursors, supplying to LG Energy Solution and Samsung SDI.
• ECOPRO BM
Key producer of high-performance precursors and CAMs for solid-state battery applications.
• BASF
Building out a European battery materials supply chain, including precursor and CAM plants in Germany and Finland.

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Recent Developments
CNGR - May 2025
Announced a $1.2 billion investment in a new precursor manufacturing hub in Hungary, supplying European EV OEMs under long-term contracts.
Umicore - April 2025
Opened a precursor and cathode plant in Poland, achieving fully localized EU battery materials production for VW's EV lineup.
GEM Co., Ltd. - March 2025
Signed a strategic agreement with CATL to supply recycled cobalt and nickel-based precursors for low-carbon battery production.
L&F Co., Ltd. - February 2025
Released a new high-nickel NCM92 precursor line tailored for ultra-fast charging EV batteries.
BASF - January 2025
Launched its first U.S. precursor facility in partnership with a North American lithium-ion cell producer under IRA incentives.

Events and Implications
a. Vertical Integration Redefining Supply Models
Battery giants like CATL, LG Energy, and Panasonic are investing upstream into precursor production - securing price and supply stability.
b. Raw Material Diplomacy
Countries are signing bilateral agreements to access critical battery minerals. Control over Ni/Co/Mn supply will shape the next decade of battery competitiveness.
c. Green Precursor Certification
OEMs are demanding carbon-neutral and ethically sourced precursors, giving rise to green certification protocols across supply chains.
d. Solid-State Transition
As OEMs pursue solid-state battery commercialization, precursor manufacturers are innovating high-purity, high-voltage stable compositions.

Conclusion
The Li-ion battery ternary precursor market is entering a golden growth phase, projected to expand from USD 13.9 billion in 2024 to USD 48.3 billion by 2034, at a CAGR of 13.5%. As global electrification accelerates, the demand for high-energy, fast-charging, and sustainable battery chemistries is creating enormous opportunities for precursor producers.

Asia Pacific continues to lead in scale and innovation, but Europe and North America are catching up fast through policy support and strategic alliances. Players focusing on high-nickel chemistries, recycled input materials, and region-specific supply chains will emerge as long-term leaders.

This report is also available in the following languages : Japanese (リチウムイオン電池三元前駆体市場), Korean (리튬 이온 배터리 3원 전구체 시장), Chinese (锂离子电池三元前驱体市场), French (Marché des précurseurs ternaires des batteries Li-ion), German (Markt für ternäre Vorläufer von Lithium-Ionen-Batterien), and Italian (Mercato dei precursori ternari delle batterie agli ioni di litio), etc.

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