Nickel Manganese Cobalt Battery Market Analysis

Nickel Manganese Cobalt Battery Market Analysis

The nickel manganese cobalt (NMC) battery market by application is segmented into automotive, energy storage, and industrial. The automotive application segment accounted 53.1% market share in 2024.
 

• Owing to rise in adoption of EV due to rising adoption of environmental friendly transportation and favorable government policies in the field, the nickel manganese cobalt (NMC) battery market is expected to witness higher demand from automotive application segment.
   
• The NMC battery offers higher energy density, lower perishability and effective performance. These batteries are commonly used in EVs, grid energy storage systems. Due to these factors various emerging companies especially outside China including Lohum, InoBat recently invested into NMC production. In addition, several advances and usage of ecological material for cathode production to avoid the risk of environmental concerns and energy leak.
   
• For instance, around 14 million of cars run on battery were newly sold across the world, reporting 34% growth from 2022 in the electric cars industry in 2023. Thus, making 40 million of total number of electric cars on run by end of 2023. Similarly, electric three wheeler sales grew by 30% accounting for nearly 1 million unit sales in 2023 from 2022.
   
• These factors are simultaneously boosting the demand for infrastructural growth for EV charging stations. Thus, according to Stated Policies Scenario (STEPS) and Announced Pledges Scenario (APS) public charging points for EV is predicted to reach 15 million by 2030 and in next 5 years its expected to reach 25 million units. These charging points required heavy energy storage to offer recharging facilities for commuting EVs. Thus, NMC batteries proves ideal choice for EV charging stations.
   
• Similarly, higher energy density and longer life period of nickel manganese cobalt batteries suggest them an effective battery choice for industrial application sector including telecommunication, mining, and robotics. Growing surplus income resulting high adoption of smartphones. For reference, more than 4.5 million smartphone users and over 7.1 billion smartphones in usage worldwide by 2024. NMC battery can be modeled in small and lightweight designs proves to be ideal for smartphones. Additionally, increasing mining exploration projects globally is projected to rise need for NMC batteries in mining sites.
   
• The rapid shift towards green energy from traditional energy system is likely to further drive demand for NMC batteries for energy storage in these grids. For instance, according to the US IEA the global renewable capacity is estimated to grow more than 5500GW during 2024-2030 period. Furthermore, utility scale and distributed Solar PV account for approximately 80% of renewable expansion globally.

• The U.S. nickel manganese cobalt battery market reached USD 6.3 billion, USD 7.3 billion and USD 8.6 billion in 2022, 2023 and 2024. The U.S. government's commitment to reducing greenhouse gas emissions has led to increased support for EV production and infrastructure, further propelling the NMC battery market.
   
• The favorable government regulations for green energy adoption will have a positive domino effect on NMC battery market in Asia Pacific. Owing to strong hold in EVs, rising deployment of green energy system and blooming industrialization and urbanization, the regional market is witnessed to account highest growth rates in forecasted period.
   
• China’s EV purchases greatly skyrocketed in 2024, seeing a 40% increase from 2023. In the same manner, the investment growth in India will simultaneously raise the use of nickel manganese cobalt batteries. As an example, India added an additional 18.5 GW of renewable energy generation capacity by the end of March 2024.
   
• Similarly, Europe is showcasing positive trend in adoption of EV thus simultaneously rising demand for NMC batteries. For instance, according to the Advanced Propulsion Center, UK is set to produce 1.2 million of EVs a year thus raising demand for batteries to reach 91 GWh every year by 2030. These growing EV adoption rate will aid regional market growth in forecast period.