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Nickel Cobalt Manganese Market

Market Study on Nickel Cobalt Manganese: PMR Foresees Various Opportunities, Analysing Increasing Demand for Electric Vehicles, and Growth in Renewable Energy Storage Solutions

A Detailed Analysis of the Nickel Cobalt Manganese Market Based on Rising Demand for Lithium-Ion Batteries in Electric Vehicles and Renewable Energy Storage Solutions

Nickel Cobalt Manganese Market Outlook

The global nickel cobalt manganese market is forecast to expand at a CAGR of 15.3% and thereby increase from a value of US$24.95 Bn in 2024 to US$67.60 Bn by the end of 2031.


Key Insights

Nickel Cobalt Manganese Market Size (2024E)

US$24.95 Bn

Projected Market Value (2031F)

US$67.60 Bn

Global Market Growth Rate (CAGR 2024 to 2031)


Historical Market Growth Rate (CAGR 2018 to 2022)


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Market Introduction and Definition

The nickel cobalt manganese (NCM) market stands as a cornerstone within the chemicals and materials industry, reflecting a pivotal convergence of advanced materials science and burgeoning energy technologies. NCM compounds, typically employed in lithium-ion batteries, exhibit remarkable electrochemical properties crucial for energy storage applications. This market's significance lies in its pivotal role in driving the development of next-generation battery technologies, particularly in the electric vehicle (EV) sector and renewable energy storage solutions.

The demand for high-performance energy storage solutions escalates as global efforts intensify toward decarbonization and sustainable energy transitions, propelling the NCM market to the forefront of innovation. Manufacturers continually strive to enhance the performance and efficiency of NCM-based batteries, fostering a competitive landscape characterized by relentless research and development endeavors.

Key features of the NCM market include its dynamic nature, influenced by factors such as technological advancements, raw material availability, and regulatory frameworks. Moreover, its intricate supply chain, spanning mining operations, chemical synthesis, and battery assembly, underscores its complexity and interdependence with various industries.

The nickel cobalt manganese market epitomizes the pivotal nexus between materials science, energy technologies, and environmental sustainability, shaping the trajectory of the Chemicals and Materials industry towards a greener and more electrified future.

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Market Growth Drivers

The Global Shift Toward Electric Vehicles

The global shift toward electric vehicles (EVs) has emerged as a significant growth driver for the nickel cobalt manganese (NCM) market. NCM cathode materials are vital components in lithium-ion batteries, which are extensively used in EVs due to their high energy density and improved performance. As governments globally implement stringent regulations to reduce carbon emissions and combat climate change, there is a soaring demand for EVs, thereby increasing the need for NCM batteries.

The NCM market is poised for exponential growth as it caters to the burgeoning demand for sustainable transportation solutions with automakers aggressively investing in electric mobility and expanding EV infrastructure.

The Proliferation of Renewable Energy Sources

The proliferation of renewable energy sources, coupled with the need for efficient energy storage solutions, is driving the expansion of the nickel cobalt manganese (NCM) market. As the world transitions toward green and sustainable energy landscape, there is a growing emphasis on integrating intermittent renewable energy sources like solar and wind into the grid.

NCM batteries serve as an essential enabler for energy storage systems, offering high energy density, longer cycle life, and improved safety compared to traditional technologies. The scalability and versatility of NCM batteries make them ideal for stationary energy storage applications, such as grid stabilization, peak shaving, and backup power.

Declining costs and ongoing research efforts aimed at enhancing battery performance and longevity are accelerating the adoption of NCM-based energy storage solutions worldwide. This trend is expected to drive robust growth in the NCM market as it becomes increasingly intertwined with the renewable energy transition.

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Market Restraints

Supply Chain Vulnerabilities

The nickel cobalt manganese (NCM) market faces significant challenges due to supply chain vulnerabilities. The complex and interdependent nature of the supply chain, spanning multiple countries and involving various stakeholders, makes it susceptible to disruptions. Factors such as geopolitical tensions, trade disputes, and natural disasters can lead to supply chain bottlenecks, affecting the availability of essential raw materials and components.

The concentration of production facilities in specific regions increases the market's exposure to risks associated with political instability or regulatory changes in those areas. These supply chain vulnerabilities not only impede the smooth flow of materials but also escalate costs and lead times, hindering the market's growth potential.

Environmental and Regulatory Constraints

Environmental and regulatory constraints pose another significant challenge to the growth of the nickel cobalt manganese market. The extraction and processing of these metals often involve environmentally intensive processes, leading to concerns about pollution and ecological degradation.

Stringent regulations aimed at mitigating these environmental impacts can increase compliance costs and operational complexities for market players. Moreover, heightened scrutiny on the sourcing of raw materials, particularly regarding ethical and sustainable practices, further complicates the market landscape.

Compliance with evolving regulatory standards requires substantial investments in research, development, and technology upgrades, diverting resources away from innovation and expansion efforts. As a result, navigating through these environmental and regulatory constraints becomes a crucial barrier to realizing the full growth potential of the nickel cobalt manganese market.

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Electric Vehicle Revolution Driving Demand Surge

The global shift toward electric vehicles (EVs) presents a significant opportunity in the nickel cobalt manganese (NCM) market. As governments worldwide prioritize decarbonization and enact stringent emission regulations, automakers are rapidly transitioning towards electric propulsion. NCM batteries, renowned for their high energy density and longevity, have become the preferred choice for EV manufacturers.

The demand for NCM batteries is poised to soar with the EV market projected to witness exponential growth in the coming years. This surge in demand offers a lucrative opportunity for stakeholders in the NCM market, including miners, refiners, and battery manufacturers. As automakers compete to enhance the driving range and performance of EVs, the demand for NCM batteries with higher nickel content is expected to escalate further.

Sustainable Energy Storage Solutions for Renewable Integration

The transition towards renewable energy sources, such as wind and solar, necessitates efficient energy storage solutions to mitigate intermittency issues and ensure grid stability. NCM batteries offer a promising avenue for storing excess renewable energy and delivering it when needed, thereby facilitating the seamless integration of renewables into the power grid.

The demand for NCM batteries in grid-scale storage projects is set to escalate as governments worldwide implement ambitious renewable energy targets and incentivize energy storage deployment. These batteries not only provide reliable energy storage but also contribute to reducing carbon emissions by displacing fossil fuel-based power generation during peak demand periods.

Ongoing research and development efforts aimed at enhancing the sustainability and recyclability of NCM batteries align with the growing emphasis on environmental stewardship. Initiatives to optimize battery chemistries, improve recycling processes, and minimize raw material extraction impacts underscore the industry's commitment to fostering a sustainable.

Analyst’s Viewpoint

The nickel cobalt manganese (NCM) market is poised for steady growth. This is primarily driven by increasing demand for lithium-ion batteries, which extensively utilize NCM cathodes in electric vehicles (EVs), consumer electronics, and energy storage systems.

The global shift toward clean energy sources and the burgeoning EV market are major catalysts. Additionally, advancements in battery technology, coupled with government incentives and regulations promoting sustainable transportation, further drive market expansion.

The NCM market is projected to experience robust growth. This is attributable to sustained investments in EV infrastructure, renewable energy integration, and ongoing research and development efforts aimed at enhancing battery performance and reducing costs. Technological innovations, such as the development of high-nickel content NCM formulations and recycling initiatives, are expected to bolster market growth and sustainability. Increasing environmental awareness and stringent emissions regulations globally will drive the adoption of EVs, thereby boosting the demand for NCM batteries.

Supply-side Dynamics

The nickel cobalt manganese (NCM) market is significantly influenced by a multitude of supply dynamics, each playing a pivotal role in shaping the industry's landscape. One of the primary factors impacting supply is the availability and cost of raw materials.

The mining and extraction of nickel, cobalt, and manganese ores are crucial, and any disruptions in these processes can lead to supply constraints. Additionally, geopolitical tensions and trade policies affecting major producing regions like Indonesia and the Democratic Republic of Congo can significantly impact supply chains.

Technological advancements and innovations in extraction and processing methods also influence supply dynamics. Improvements in efficiency and sustainability can lead to increased production capacities and more stable supplies. Conversely, environmental regulations and concerns surrounding the mining industry can impose limitations on production, affecting supply levels.

The demand for NCM compounds in lithium-ion batteries, particularly in electric vehicles (EVs), continues to surge, driving the need for a stable and abundant supply. Any imbalances in supply can lead to price volatility and potentially hinder the growth of the EV market. The interplay between these factors underscores the complex nature of the NCM market, where supply dynamics intricately shape demand trends and industry growth.

Market Segmentation

How the Nickel Cobalt Manganese Market is Segmented Based on Type?

Delving into the intricate world of nickel cobalt manganese (NCM) alloys unveils a realm of meticulous formulation and precise proportioning. Under this segment lie notable compositions such as NMC333, NMC622, and NMC955, each bearing its unique blend of nickel, cobalt, and manganese. While NMC333 boasts a symmetrical mix of 33% nickel, 33% manganese, and 33% cobalt, NMC622 strikes a different chord with 60% nickel, 20% manganese, and 20% cobalt. NMC955 boldly steps forward with an assertive 90% nickel composition, accompanied by 5% manganese and 5% cobalt. Beyond these standouts lie a myriad of other variations, each tailored to specific industrial demands.

How the Nickel Cobalt Manganese Market is Classified Based on End Use?

The utilitarian appeal of NCM alloys extends across an array of industries, with applications spanning from the sleek confines of consumer electronics to the robust domains of automotive and aerospace. These alloys find resonance in marine, medical, industrial, and power sectors as well as in a myriad of other end uses.

Geographically, their influence knows no bounds, as North America, Europe, East Asia, South Asia & Oceania, Latin America, and the Middle East & Africa all bear witness to their transformative impact, weaving a global tapestry of innovation and advancement.

Top Regional Markets

Which Region is Poised for Notable Growth in the Nickel Cobalt Manganese Market?

The nickel manganese cobalt battery market is poised for substantial growth in Europe with projections indicating a value surpassing US$ 21.5 billion by 2031. The region's burgeoning demand for electric vehicles, coupled with significant investments in EV charging infrastructure, underscores a profound shift toward sustainable transportation solutions.

European Commission's data reveals a marked increase in EV charging stations, signaling a progressive stance toward reducing carbon emissions. Initiatives such as the ban on conventional petrol and diesel vehicles by 2040 in countries like France and the United Kingdom align with global environmental goals, fostering great acceptance of electric vehicles.

Competitive Intelligence and Business Strategy

Many significant companies have emerged as leaders in the realm of nickel cobalt manganese (NCM) industry, steering the market with their innovative approaches and strategic initiatives. Companies such as BASF SE, Umicore, and LG Chem are at the forefront, leveraging their extensive research and development capabilities to push boundaries in battery technology.

Each player in the market adopts unique competitive strategies tailored to their strengths and market positioning. BASF SE, for instance, focuses on vertical integration, controlling various stages of the supply chain to ensure quality and efficiency. Umicore emphasizes sustainability and eco-friendly practices, while LG Chem emphasizes product diversification and global expansion.

Market leaders enjoy key competitive advantages such as advanced manufacturing capabilities, strong research and development investments, established global networks, and brand recognition. As the industry evolves, the competitive landscape is expected to witness further consolidation, with leaders expanding their market share through strategic alliances, acquisitions, and technological advancements.

The competitive landscape is likely to be characterized by intense rivalry, driven by continuous innovation, evolving consumer demands, and regulatory changes aimed at promoting sustainability and energy efficiency.

Notable Recent Developments

Advancements in Battery Technology Integration

Companies in the nickel cobalt manganese (NCM) market are integrating advanced battery technologies, enhancing energy density and longevity. These developments include innovations in electrode compositions, electrolyte formulations, and manufacturing processes. Such advancements improve the performance and efficiency of NCM batteries, catering to the growing demand for high-performance energy storage solutions in electric vehicles (EVs), consumer electronics, and renewable energy systems.

Impact on Market

These advancements propel the NCM market forward by addressing key challenges such as range anxiety in EVs and increasing the appeal of energy storage solutions. Enhanced battery performance attracts more investments and expands market opportunities, fostering innovation and competitiveness within the industry. Additionally, improved energy density and longevity contribute to the widespread adoption of NCM batteries, driving market growth and profitability for companies involved in their production and supply chain.

Sustainable Sourcing Initiatives

Several companies operating in the NCM market are implementing sustainable sourcing initiatives for raw materials like nickel, cobalt, and manganese. These initiatives aim to address environmental and ethical concerns associated with mining activities by promoting responsible sourcing practices, recycling programs, and partnerships with certified suppliers. By prioritizing sustainability, companies seek to enhance their brand reputation, meet regulatory requirements, and mitigate supply chain risks associated with resource scarcity and geopolitical tensions.

Impact on Market

The integration of sustainable sourcing initiatives fosters greater transparency and accountability within the NCM market, attracting environmentally conscious consumers and investors. Companies that adopt responsible practices gain a competitive edge, as stakeholders increasingly prioritize sustainability considerations in their decision-making processes. Moreover, these initiatives help mitigate supply chain disruptions caused by geopolitical tensions or regulatory changes, ensuring a more stable and resilient market environment. Overall, sustainable sourcing initiatives contribute to the long-term viability and growth of the NCM market by addressing environmental, social, and governance (ESG) factors.

Technological Collaboration and Partnerships

Collaborative efforts and partnerships between companies across the NCM value chain are on the rise, driven by the need for innovation, resource optimization, and market expansion. These collaborations involve joint research and development projects, technology licensing agreements, and strategic alliances aimed at leveraging complementary expertise, accelerating product development cycles, and capturing new business opportunities in emerging markets.

Impact on Market

Technological collaboration and partnerships foster synergies among industry players, enabling faster innovation cycles and the commercialization of advanced NCM technologies. By pooling resources and expertise, companies can overcome technological barriers, reduce R&D costs, and expedite time-to-market for new products and solutions. Moreover, strategic alliances facilitate market penetration strategies, enabling companies to access new customer segments and geographical regions more effectively. Overall, technological collaboration and partnerships drive market growth, competitiveness, and innovation in the NCM industry, positioning participants for long-term success in a rapidly evolving market landscape.

Nickel Cobalt Manganese Market Report Scope



Forecast Period

2024 to 2031

Historical Data Available for

2018 to 2023

Market Analysis

US$ billion for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • The United States
  • Canada
  • Germany
  • The United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • By Type
  • By End Use
  • By Region

Key Companies Profiled

  • Sumitomo Metal Mining Co., Ltd.
  • Xiamen TOB New Energy Technology Co., Ltd
  • Umicore
  • Asahi Kasei
  • Mitsubishi Chemical Corporation
  • POSCO Future M Co., Ltd.
  • Johnson Matthey
  • The 3M Company
  • Evonik Industries

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Nickel Cobalt Manganese Market Segmentation

By Type

  • NMC333 (33% nickel, 33% manganese and 33% cobalt)
  • NMC622 (60% nickel, 20% manganese and 20% cobalt)
  • NMC955 (90% nickel, 5% manganese and 5% cobalt)
  • Others

By End Use

  • Consumer Electronics
  • Automotive
  • Aerospace
  • Marine
  • Medical
  • Industrial
  • Power
  • Others

By Region

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • The Middle East & Africa

- Companies Covered in This Report -

- Frequently Asked Questions -

The nickel manganese cobalt battery market is poised for substantial growth in Europe.

A few of the key competitors in the market are BASF SE, Sumitomo Metal Mining Co., Ltd., Xiamen TOB New Energy Technology Co., Ltd, and Umicore.

The global shift toward electric vehicles (EVs) presents a significant opportunity in the market.

The market is estimated to record a CAGR of 15.3% during the forecast period from 2024 to 2031.

The proliferation of renewable energy sources is shaping the market growth.

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