Lithium Nickel Manganese Cobalt Oxide (NMC) Industry Growth and Forecast Till 2031

Information may not be reliable

Lithium Nickel Manganese Cobalt Oxide (NMC): Introduction

• Innovations of electric vehicles (EV) have been boosting interest globally, as the importance of CO2 emission reduction is being scrutinized by the Environmental Protection Agency (EPA). Currently, the world is progressing toward building a society where technology is green, eco-friendly, and sustainable.
• Demand for EVs is expected to increase significantly in the near future. EVs are anticipated to overshadow internal combustion engine (ICE) vehicles. A new set of lithium-ion batteries are being made specifically to tailor to performance requirements for high power output in EVs.
• Advancements in battery technology and electrification of automobiles have contributed to the changing technological landscape in the automobile industry. Lithium Nickel Manganese Cobalt Oxide (NMC) is widely used in lithium-ion batteries. NMC is used as the cathode, while graphite is used as the anode. The specific energy density of NMC is 150–220 Wh/kg, with thermal runaway being 210°C (410°F). High cost and toxic nature of cobalt is leading battery manufacturers to move toward higher nickel content in cathodes.
• Battery made up of NMC generally has a longer cycle life, more stability, and higher energy density than lithium cobalt oxide (LCO) and lithium iron phosphate (LFP) batteries. The cost of energy is also lower due its ability to cycle with more stability than NCA battery. The battery has a high cycle life suitable for off-grid and very unstable grids, with commercial products featuring a 60% state of charge (SOC) greater than 6,000 cycles at 90% depth of discharge (DOD).

Key Drivers and Restraints of Global Lithium Nickel Manganese Cobalt Oxide (NMC) Market

• Expansion of the EVs market has fueled the demand for NMC. Original equipment manufacturers (OEMs) are investing in the development of EV technology in the automotive industry. Improved usage of NMC batteries in EVs, grid storage, and portable consumer electronics systems due to its high safety level with high energy density is projected to drive the market in the near future.
• Technological advancements to decrease the weight and cost of the battery and increase power output and efficiency are also estimated to propel the market. Efficient distribution channels are likely to be an essential method for players to attain a competitive advantage.

Lithium Nickel Manganese Cobalt Oxide (NMC): End-use Segment

• In terms of end-use, the global NMC market can be segmented into automotive, consumer electronics, energy storage system, industrial, and others
• The automotive segment is expected to account for significant share of the global NMC market during the forecast period. It is anticipated to be followed by the consumer electronics segment.
• The industrial segment is likely to expand at a rapid pace during the forecast period

Covid-19 Impact on Lithium Nickel Manganese Cobalt Oxide (NMC) Market

• After the World Health Organization (WHO) declared the Coronavirus disease (COVID-19) outbreak a public health emergency, manufacturing of various consumer goods and other products across the globe came to a halt due to the unavailability of raw materials, shortage of labor, etc.
• NMC plays an important role in various applications in automotive, consumer electronics, energy storage, and others. The COVID-19 pandemic has compelled many production facilities of these end-user industries to come to a standstill. This has adversely affected the demand for NMC in these facilities. In turn, this is expected to hamper the NMC market to some extent.

Asia Pacific to Dominate Lithium Nickel Manganese Cobalt Oxide (NMC) Market

• In terms of region, the global NMC market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
• Asia Pacific is anticipated to account for significant share of the global NMC market in the near future. Rise in demand for EVs in Asia Pacific, particularly in China and India, is anticipated to drive the NMC market in the region. Expansion of the automotive industry in Asia Pacific is also likely to boost the NMC market in the region.