NCM Battery Material Market Poised for Growth as Automakers Shift to High-Energy Chemistries | Valuates Reports

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Jun 11, 2025, 11:18 ET

BANGALORE, India, June 11, 2025 /PRNewswire/ -- NCM Battery Material Market is Segmented by Type (NCM111, NCM523, NCM622, NCM811, Others), by Application (New Energy Vehicles, 3C Electronics, Others): Global Opportunity Analysis and Industry Forecast, 2024-2031.

The global market for NCM Battery Material was valued at USD 16.4 Billion in the year 2024 and is projected to reach a revised size of USD 40.6 Billion by 2031, growing at a CAGR of 13.4% during the forecast period.

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Major Factors Driving the Growth of NCM Battery Material Market

The usage of NCM battery material is growing despite its higher cost because it offers a superior balance of energy density, performance, and efficiency/critical attributes for electric vehicles and advanced energy storage systems. NCM chemistries, particularly high-nickel variants like NCM811, enable longer driving ranges, faster charging, and lighter battery packs, which are essential for meeting consumer expectations and regulatory demands. Additionally, ongoing innovations are gradually reducing cobalt content, helping to lower long-term costs and address ethical sourcing concerns. The strategic value of NCM in achieving cleaner mobility and efficient energy storage outweighs its initial cost, making it a preferred choice for manufacturers and governments investing in sustainable technologies.

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TRENDS INFLUENCING THE GROWTH OF THE NCM BATTERY MATERIAL MARKET

NCM811, comprising 80% nickel, 10% cobalt, and 10% manganese, plays a pivotal role in the growth of the NCM battery material market due to its high energy density and cost-efficiency. The reduction in cobalt content addresses ethical and supply chain concerns, making NCM811 more sustainable and economical. It is widely adopted in electric vehicles (EVs) due to its ability to extend driving range and reduce battery weight, both of which are critical for improving EV performance and consumer acceptance. Additionally, NCM811 supports fast charging, enhancing convenience for users. As global EV sales rise, manufacturers are shifting to NCM811-based chemistries to meet performance demands and cost targets, significantly driving the demand for this battery material.

NCM622, with a 6:2:2 ratio of nickel, cobalt, and manganese, contributes to the market by offering a balanced solution between performance, cost, and safety. It has become the preferred material in mid-range electric vehicles and consumer electronics, where high energy density is required without compromising stability. NCM622 provides greater thermal stability and cycle life compared to earlier chemistries like NCM111, making it suitable for both portable devices and stationary energy storage systems. Manufacturers favor NCM622 for its maturity in production processes and regulatory compliance. As the global demand for affordable, efficient energy solutions grows, NCM622 continues to hold a strong share in the market, accelerating its overall expansion.

New energy vehicles (NEVs), including battery electric and plug-in hybrid vehicles, are the primary demand drivers for NCM battery materials. As governments push for decarbonization, stricter emission norms and subsidies are boosting EV adoption globally. NCM-based cathode materials, especially NCM811 and NCM622, are essential in achieving the high energy density and cost goals of NEVs. These materials enable extended range, faster charging, and reduced dependency on cobalt, making them ideal for mass-market EVs. Automakers are forming partnerships with battery manufacturers to secure long-term NCM supplies. The exponential growth in NEV production directly influences the demand for NCM materials, cementing their role in the global energy transition.

Consumer expectations for longer-lasting, faster-charging batteries have fueled the growth of high-energy density solutions, with NCM materials at the forefront. These materials allow more lithium ions to be stored and transferred, increasing both power output and efficiency. Applications such as electric vehicles, drones, and high-end electronics benefit from this enhancement in energy capacity. Battery manufacturers are prioritizing NCM formulations to meet industry demands for compact, lightweight, and high-performing battery packs. As energy density becomes a key parameter in battery innovation, NCM materials will remain central to future product development and technological adoption.

One of the significant growth factors is the evolving battery chemistries that reduce cobalt content while enhancing performance. Cobalt is expensive, scarce, and often tied to unethical mining practices. By shifting toward high-nickel compositions like NCM811, manufacturers can reduce costs and improve ethical sourcing. These innovations make NCM batteries more attractive to ESG-conscious companies and consumers. The development of cobalt-light or cobalt-free formulations reflects industry efforts to ensure sustainable and scalable production. The successful commercialization of these materials enhances investor confidence and consumer acceptance, boosting the long-term viability of NCM battery technologies.

Public policies supporting renewable energy and zero-emission mobility are fueling the demand for advanced battery technologies. Governments across Asia, Europe, and North America are providing financial incentives to promote electric vehicle adoption, which directly stimulates the NCM battery material market. Subsidies for battery manufacturing plants, tax breaks for EV buyers, and carbon reduction mandates are driving investments in battery supply chains. Many national policies now include mandates for domestic battery production and sourcing, leading to a surge in regional NCM material procurement. This policy-driven push is vital in ensuring sustained market demand and fostering innovation in the NCM segment.

The rapid increase in electric vehicle (EV) manufacturing is significantly boosting the demand for NCM battery materials. Automakers are under pressure to meet regulatory CO₂ targets and transition away from fossil fuels. NCM-based lithium-ion batteries offer high energy density and are essential for building longer-range EVs at lower costs. With battery performance being a key differentiator in EV adoption, manufacturers are investing heavily in NCM chemistries. Leading markets like China, the U.S., and Europe are offering tax benefits and subsidies that encourage the production and sale of EVs, indirectly accelerating the consumption of NCM battery components across regions.

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NCM BATTERY MATERIAL MARKET SHARE ANALYSIS

The regional landscape of the NCM battery material market shows strong growth in Asia-Pacific, particularly in China, South Korea, and Japan, due to their dominance in battery production and EV adoption. China leads in raw material processing and has invested significantly in domestic EV infrastructure, propelling demand for NCM materials. South Korea and Japan contribute through technological innovation and exports of NCM-based battery packs.

Europe follows closely, fueled by the EU's Green Deal policies and the expansion of local gigafactories.

North America is emerging with increased investment in domestic battery production to reduce reliance on imports. Each region's industrial focus shapes the trajectory of NCM material consumption.

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Key Players:

L&F
Sumitomo Metal Mining Co., Ltd.
Sinochem
Umicore
Toda Kogyo
Tanaka Chemical
Mitsui Mining & Smelting
Nichia Corporation
BASF
GEM
Tianjin Bamo Technology
Ningbo Ronbay New Energy
Hunan Shanshan
Beijing Dangsheng Material
Reshine New Material
Hunan Cylico
Guizhou Zhenhua New Materials
Xiamen Simwe
Pulead Technology Industry

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