Precursor Materials Market Share Driven by Rapid Expansion of Lithium-Ion Battery Manufacturing | Valuates Reports

Precursor Materials Market Size
The global market for Precursor Materials was valued at US$ 17520 million in the year 2024 and is projected to reach a revised size of US$ 43560 million by 2031, growing at a CAGR of 14.1% during the forecast period.

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The Precursor Materials market is experiencing strong expansion as the global shift toward electrification accelerates demand for high-performance lithium-ion batteries. Growing production of electric vehicles, energy storage systems, and portable consumer electronics continues to shape market size and drive market growth. Market trends are influenced by advancements in lithium battery chemistry, supply chain integration, and increased emphasis on sustainable production and material recovery. The rising deployment of renewable energy technologies is also expanding the need for reliable battery components, further strengthening demand for high-purity precursor materials.

By type, NCM precursor materials currently dominate the market share owing to their widespread use in power and consumer battery applications. Their balanced performance advantages, including energy density and stability, have made NCM the preferred choice for mainstream lithium-ion production. NCA materials are gaining traction due to their higher performance characteristics, supporting premium battery platforms where improved capacity and thermal stability are critical. Both segments remain essential to ongoing market growth as manufacturers optimize battery chemistries to meet evolving performance, safety, and cost requirements.

In terms of application, the power battery segment holds the largest market share, driven by increasing demand from electric vehicle production and large-scale energy storage deployments. This segment continues to expand rapidly as automakers and energy developers scale manufacturing output and invest in localized supply chains. Consumer batteries also represent a major share of demand, supported by persistent growth in smartphones, laptops, wearables, and portable devices. Other applications contribute to overall market size through specialized energy storage needs and industrial battery solutions.

Leading companies such as GEM Co., Ltd, Umicore, CNGR Corporation, Brunp Recycling, Tanaka Chemical Corporation, and Zhejiang Huayou Cobalt hold strong positions through extensive production capabilities and vertically integrated operations. These companies leverage advanced refining technologies, strategic partnerships with battery manufacturers, and a focus on supply chain security to strengthen market share. Emerging players like Greatpower Technology, Ronbay Technology, and Hunan Changyuan Lico continue to expand through capacity upgrades, product innovation, and expansion into international markets, supporting competitive market trends.

Regionally, Asia-Pacific dominates production and consumption, with China, South Korea, and Japan serving as major battery manufacturing hubs supported by large-scale investments, strong industrial policy frameworks, and mature downstream ecosystems. North America and Europe are experiencing accelerating market growth as domestic battery supply chains expand, supported by initiatives to localize manufacturing and reduce dependence on imported precursor materials. The market forecast remains highly positive, with increasing electrification, battery innovation, recycling advancements, and supply chain optimization expected to support sustained market growth and reinforce global market share leadership across key regions.

by Type

• NCM Type
• NCA Type

by Application

• Power Battery
• Consumer Battery
• Others

By Company

GEM Co., Ltd, Umicore, CNGR Corporation, Brunp Recycling, Tanaka Chemical Corporation, Kelong New Energy, Zhejiang Huayou Cobalt, Fangyuan, Greatpower Technology, Ronbay Technology, Hunan Changyuan Lico, GanfengLithium, Jiana Energy, Jinchuan Group, Zhejiang Power

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