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Increasing Demand for Lithium Batteries is Expected to Drive the Cathode Materials Market

With a rising demand for the lithium batteries in the power tools, automotive industry, consumer electronics, and energy storage systems, among others is likely to drive the cathode materials market with a CAGR of 14.0% in terms of value and 16.23% in terms of volume from 2018 to 2023. Commonly, cathode material is the combination of cobalt, nickel and manganese in a crystallized structure with cobalt being the primary active material. However, over the years cobalt has been replaced with nickel as an active material, and some of the most prominent chemistries of cathode as Nickel Manganese Cobalt (NCM), Nickel Cobalt Aluminum (NCA), Lithium Cobalt Oxide (LCO), Lithium Manganese Oxide (LMO), and Lithium Iron Phosphate (LFP).

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According to a market report published by the BIS Research, the market for cathode materials can be segmented on the basis of type, end-user and region. The cathode material in terms of type is categorized as NCM, LCO, LFP, LMO, and NCA.  The segmentation of the market based on end-user is categorized as consumer electronics, automotive, power tools, and energy storage systems. The rising concern of the governments to address the issue of increasing air pollution, more and more electric vehicles are likely to be promoted in the markets, which in turn will increase the demand for lithium-ion based batteries for the automotive segment. Additionally, in order to promote electric vehicles, the demand for lithium-ion based batteries is expected to go up.

Further, based on region the market is divided as North America, Asia – Pacific, Europe, Middle East & Africa and South America. The Asia – Pacific region was valued at $1991.5 million in 2017 and it is also the fastest growing market for cathode materials. Increased technological advancements in the different application segments of the cathode materials market will bring innovation in the advanced material and chemical industry as well.

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