Lithium Nickel Cobalt Manganese Oxide Market to Reach USD 1,078 Million by 2032, Declining at a CAGR of -3.0%

Definition

Lithium Nickel Cobalt Manganese Oxide (commonly abbreviated as NCM or LiNiCoMnO₂) is a type of lithium-ion battery cathode material that combines nickel, cobalt, and manganese in varying ratios to achieve optimal energy density, stability, and cost efficiency. This compound plays a critical role in the manufacturing of rechargeable lithium-ion batteries, widely used in electric vehicles (EVs), portable electronics, and energy storage systems (ESS). Its balanced composition provides high capacity from nickel, thermal stability from manganese, and improved longevity from cobalt, making it a key material in next-generation energy solutions.

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Market Size

Global Lithium Nickel Cobalt Manganese Oxide market was valued at USD 1,330 million in 2024. The market is projected to decline from USD 1,289 million in 2025 to USD 1,078 million by 2032, exhibiting a negative CAGR of -3.0% during the forecast period.

This downward trend is primarily attributed to the growing adoption of alternative cathode materials such as Lithium Iron Phosphate (LFP), fluctuating raw material prices, and increasing environmental and ethical concerns surrounding cobalt mining. However, ongoing research into high-nickel NCM variants (such as NCM811) may partially offset the decline by improving performance and reducing reliance on cobalt.

Regional Analysis

Asia-Pacific (APAC):
Dominates the market due to the strong presence of battery manufacturers in China, Japan, and South Korea. However, China’s shift toward LFP batteries in EVs is reducing the regional share of NCM-based batteries.
Europe:
Remains a significant region owing to its focus on high-performance EV batteries and strong R&D activities in cathode chemistry optimization. The European Union’s sustainability regulations are driving a transition toward low-cobalt NCM compositions.
North America:
Experiences moderate demand growth from EV and ESS manufacturers, though supply chain challenges and import dependencies affect the market pace.
Rest of the World:
Emerging regions in Latin America and the Middle East are exploring lithium mining and refining, indirectly influencing the global NCM supply chain.

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Major players include:
LG Energy Solution, Umicore, Sumitomo Metal Mining, BASF SE, and Nichia Corporation.

Global Lithium Nickel Cobalt Manganese Oxide Market: Segmentation Analysis

The market segmentation analysis provides insights into the diverse applications and types of NCM materials across industries. It helps identify key trends shaping demand patterns and investment priorities worldwide.

Market Segmentation (by Application)

Electric Vehicles (EVs):
NCM remains a preferred material for high-energy EVs, though its market share is declining due to the rapid adoption of LFP alternatives.
Consumer Electronics:
Used in smartphones, laptops, and power tools for its high energy density and stability.
Energy Storage Systems (ESS):
Utilized in grid and residential storage applications, where energy efficiency and longevity are key.
Others:
Includes aerospace and specialized industrial battery systems.

Market Segmentation (by Type)

NCM 111 (1:1:1 Ratio): Early-generation composition offering balanced performance.
NCM 523 (5:2:3 Ratio): Mid-range blend with better capacity than NCM 111.
NCM 622 (6:2:2 Ratio): Enhanced energy density and moderate cobalt content.
NCM 811 (8:1:1 Ratio): Advanced variant with high nickel and reduced cobalt, increasingly favored by EV manufacturers.

Key Company

LG Energy Solution Ltd.
Umicore
Sumitomo Metal Mining Co., Ltd.
BASF SE
Nichia Corporation
Toda Kogyo Corp.
Targray Technology International
Xiamen Tungsten Co., Ltd.

These key players are involved in extensive R&D to improve cathode performance, reduce costs, and strengthen supply chains through vertical integration and recycling initiatives.

Geographic Segmentation

North America (U.S., Canada, Mexico)
Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
Asia-Pacific (China, Japan, South Korea, India, Southeast Asia)
Latin America (Brazil, Argentina)
Middle East & Africa (UAE, South Africa, Saudi Arabia, Rest of MEA)

FAQ Section

Q1. What is the CAGR of the Lithium Nickel Cobalt Manganese Oxide market?
A1. The market is projected to decline at a CAGR of -3.0% during 2025–2032.

Q2. What will be the market size by 2032?
A2. The market is expected to reach USD 1,078 million by 2032.

Q3. What factors are causing the market decline?
A3. Increasing preference for LFP batteries, high raw material costs, and cobalt supply issues are major factors.

Q4. Which region dominates the market?
A4. Asia-Pacific currently dominates due to its established battery manufacturing ecosystem.

Q5. Which type of NCM is most in demand?
A5. NCM 811 is gaining traction for its high energy density and reduced cobalt content.

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