Cathode Material for Automotive Lithium-Ion Batteries Becoming Cheaper

In 2019, 2.1 million electric cars were sold around the world, thus bringing the number of those operational to more than 7.2 million, as per the International Energy Agency (IEA). Moreover, the IEA says that 350 million electric two- and three-wheelers were operational globally in 2019. Led by the favorable government policies for electric vehicle (V) adoption and stringent emission norms for conventional automobiles, EV sales are burgeoning, thus creating a huge need for their various components.

As a result, P&S Intelligence expects the cathode material for automotive lithium-ion battery market value to rise to $3,777.8 million by 2030 from 1,744.9 million in 2019, at a 6.9% CAGR during 2020–2030. This is because the battery, along with the motor, is the most-important component of an EV. Subsequently, cathode material is of high significance as its quality and amount decide the battery voltage. The cathode is the positive terminal in a normal battery, which attracts electrons from the anode, as the battery gives current.

In this regard, the growing environmental concerns are the key factor driving the consumption of materials that make up the lithium-ion battery cathode. This is because after electricity production, the transportation sector makes the largest contribution to the global problem of air pollution. Thus, governments around the world are offering an array of incentives to encourage people to replace their diesel and petrol (gasoline) automobiles with EVs. For this, purchase subsidies, registration and licensing fees reduction, and parking fee exemptions are being offered.

Thus, Asia-Pacific (APAC) has been the largest cathode material for automotive lithium-ion battery market as most of the providers of such materials, such as Panasonic Corporation, POSCO, Mitsubishi Chemical Holdings Corporation, Hitachi Chemical Company Limited, and Nichia Corporation, are based in the region. In addition, APAC is the largest producer and buyer of EVs, which has created a huge demand for cathode materials, including lithium–iron phosphate, lithium–manganese oxide, lithium–nickel–manganese–cobalt oxide, lithium–titanate oxide, and lithium–nickel–cobalt–aluminum oxide, here.

Hence, with the burgeoning EV sales, the consumption of materials that go into automotive Li-ion battery cathodes will boom.