Latest Research Report :
Ternary Material for Automotive Battery Market,
Global Outlook and Forecast 2025-2031
Comprehensive insight into regional dynamics, growth drivers, and market segmentation.
MARKET OVERVIEW:
Ternary materials are advanced cathode materials composed of nickel, cobalt, and manganese (NCM) or nickel, cobalt, and aluminum (NCA) used in lithium-ion batteries for electric vehicles. These materials offer superior energy density, longer battery life, and improved thermal stability compared to conventional lithium-ion battery materials. The composition typically varies between NCM 523, NCM 622, and NCM 811 formulations, with higher nickel content enabling greater energy capacity.
MARKET INSIGHT & GROWTH DRIVERS:
The market growth is driven by increasing gold mining activities, particularly in Asia-Pacific and Africa, where cyanide leaching remains the dominant extraction method. However, environmental concerns and stringent regulations pose challenges to market expansion.
MARKET SEGMENTATION:
MARKET DYNAMICS
Accelerating EV Adoption Fuels Demand for High-Performance Battery Materials
The global transition towards electric vehicles represents the primary growth driver for ternary materials in automotive batteries. With EV sales projected to reach over 30 million units annually by 2030, battery manufacturers require advanced cathode materials that deliver superior energy density. Ternary materials, particularly nickel-cobalt-manganese (NCM) and nickelcobalt-aluminum (NCA) formulations, provide 15-20% higher energy density compared to conventional lithiumion alternatives, making them ideal for extending vehicle range. Major automotive markets including China, Europe and North America have implemented stringent emissions regulations that are accelerating OEM adoption of high-
performance battery technologies.
MARKET OPPORTUNITIES
The development of cobalt-free ternary materials presents a significant growth opportunity, addressing both cost and sustainability concerns. New cathode chemistries using nickelmanganese combinations are achieving comparable performance to NCM while eliminating supply chain risks associated with cobalt. Several manufacturers have successfully commercialized these alternatives, with production volumes expected to triple by 2026. The growing emphasis on ethical sourcing and reduced material costs positions these innovations to capture market share across midrange EV segments.
COMPANY MISSION
There is a growing market preference for highnickel ternary materials (NCM 811 and NCA) due to their superior energy density and cost efficiency. High-nickel cathodes significantly reduce cobalt dependency, lowering production costs while maintaining battery performance.
Manufacturers are investing in R&D to further optimize nickel-rich formulations, aiming for energy densities exceeding 300 Wh/kg. However, challenges such as thermal instability and shorter lifespans require innovative solutions, including advanced coating technologies and electrolyte modifications.
REGIONAL MARKET OUTLOOK
North America
The North American ternary materials market is propelled by strong government support for EV adoption and stringent emissions reduction targets. With the Inflation Reduction Act allocating $370 billion for clean energy initiatives, domestic battery material production is receiving unprecedented investment. High-nickel ternary materials dominate due to their superior energy density, favored by major automakers like Tesla and Ford. However, reliance on imported raw materials (particularly cobalt) remains a challenge.
Europe
Europe's market growth is driven by the EU's 2035 ban on ICE vehicles and the Critical Raw Materials Act mandating 40% localized battery material production. Germany leads with six operational gigafactories, while France invests heavily in low-cobalt formulations to reduce geopolitical risks. The region shows increasing preference for NCM 811 cathode chemistry (nickelcobalt-manganese in 8:1:1 ratio) to balance performance and cost.
COMPETITIVE LANDSCAPE
• Nichia Chemical (Japan)
• TODA KOGYO CORP (Japan)
• Tianjin B&M (China)
• Shanshan (China)
• Reshine New Material Co., Ltd (China)
• Qianyun-tech (China)
These companies represent some of the major key players driving innovation and growth in the market, contributing significantly to global supply and competitive dynamics.
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