Nickel Manganese Cobalt (NMC) Battery Market Size – By Chemistry, By Component, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Nickel Manganese Cobalt Battery Market Size

The global nickel manganese cobalt battery market was estimated at USD 30.5 billion in 2024. The market is expected to grow from USD 35.6 billion in 2025 to USD 123.4 billion in 2034, at a CAGR of 14.8%. Nickel manganese cobalt batteries are generally used as a rechargeable battery in portable electronic devices and electric vehicles. Increasing transition from conventional to green energy is flourishing the growth of nickel manganese cobalt (NMC) battery market.
 

Global green energy generation contributed 30% of total energy generation in 2023. These batteries use a combination of nickel, manganese, and cobalt in the cathode part of batteries. Owing to the material used in cathode the battery is capable of holding larger amount of energy in considerable compact and lightweight size of unit. These factors aid its use in EVs, renewable energy and consumer electronics.
 

Higher energy density trait of NMC battery especially boosts its use in EVs and power tools. The higher energy density offers better charge and discharge cycle. Furthermore, increasing environmental concerns from traditional transportation over EVs especially in developed countries such as U.S., U.K, simultaneously increasing growth of sales of EV. For instance, by the end of 2024, U.S. witnessed 7.3% rise in sales of electric vehicles exceeding 1.3 million volume sales of electric vehicles. This drives the growth of the nickel manganese cobalt (NMC) battery market.  
 

As the nickel manganese cobalt (NMC) batteries are widely used various government authorities have established favorable policies to ease the supply and regulate cost of minerals including Nickel and Cobalt. For instance, in 2023, The Ministry of Mines, India and Mineral Security Partnership (MSP) partnered to ease supply of minerals such as Nickel and Cobalt. Such factors promote self sufficiency of the nation for exploration and supply of nickel and cobalt. This aided Indian nickel price declining in 2024. For reference, price of nickel mineral reduced to approximately USD 16/kg in January 2024 from around USD 28/kg in January 2023.
 

Nickel Manganese Cobalt Battery Market Trends

The NMC market reached USD 21.9 billion, USD 25.8 billion, and USD 30.5 billion in 2022, 2023 and 2024 respectively. The nickel manganese cobalt (NMC) battery market has been observing significant growth due to growing demand for efficient batteries from different industrial applications such as EV, ESS and many more. This is encouraging several innovative initiations in the industry.
 

Solid-state batteries being one of the advances seen in the field. The technology aids faster charging times, higher energy density and better safety in response to risk of leaks and fire. The SSB in NMC could lower the cost of final product thus is expected to receive opportunity revenue pockets in future. Owing to the improved heat stability and longer life cycle of batteries NMC batteries are favored significantly.
 

Nickel provides higher performance of batteries but are costlier when compared to LFP. Thus, companies or researchers are developing new chemistries to target cost-sensitive users. For instance, nickel zinc (NiZn) battery chemistry. The technology offers higher power output and better safety than nickel manganese cobalt (NMC) batteries.
 

NiZn batteries could be majorly used in data centers and grid storage as it further boosts the energy density, thus store larger energy amounts. For instance, in May 2024, ZincFive a nickel-zinc (NiZn) battery-based manufacturer received investment to initiate its U.S. located battery manufacturing plans.
 

Further innovations to align itself with the goal of environmental preservation across globe and develop economical NMC batteries, many companies are altering the concentration rate of Nickel, Manganese and Cobalt. For instance, NMC622 contains 60%, 20% and 20% of Nickel, Manganese and Cobalt resp. Similarly, NMC811 contains only 10% Cobalt and greater than 80% of Nickel.
 

Various initiatives by manufacturers further drive the adoption of NMC batteries over other lithium batteries. For instance, in October 2024, LG Energy Solution (LG) initiated mass production of its high voltage range mid nickel batteries (nickel composition ranging between 40% to 60%).
 

Furthermore, recycling and upcycling of these critical mineral based batteries are also major driving factors of the market in focus. Owing to rising environmental concern cost-effective recycling methods, for instance, hydrometallurgical are being implicated. This method can recover from 80-90% of Nickel from the batteries, this would help to reduce the manufacturing cost and increase demand for eco-friendly NMC batteries. For instance, in May 2024, a Uk based battery recycler Altilium introduced EcoCathode a new hydrometallurgical recycling technology for NMC and LFP batteries.
 

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.
   

Nickel Manganese Cobalt Battery Market Share

A broad range of market players are engaged in nickel manganese cobalt (NMC) battery market and players are continuously working to combine the use of the improvement of operational efficiencies to build effective and high-power batteries. Market players including CATL, Clarios, Exide Technologies, Tesla, Saft are the top 5 companies in the nickel manganese cobalt (NMC) battery market.
 

The key 5 players hold nearly 40% of market share. Among these, CATL is one of the major share holding player in the market. Owing to its longer product offerings, wider geological presence and effective supply network for raw material procurement. As the electric vehicle industry keeps growing, especially in developing countries such as China, and India the NMC battery demand is witnessing positive scenarios.
 

Other top companies including Clarios, Exide Technologies, Tesla, Saft are also poised to capture significant portions of the market, particularly in affordable electric vehicles and energy storage systems.
 

Nickel Manganese Cobalt Battery Market Companies

• CATL a Chinese battery maker. The company holds significant market share in nickel manganese cobalt (NMC) battery market. The company recorded around 20-23% revenue growth in 2023 marking USD 53-57 billion value. Their recent strategies such as battery swapping initiatives and subscription based price will enhance their objective of circular economy and rise in EV adoption. Thus, capturing revenue pockets for NMC battery.
   
• Clarios a subsidiary of Brookfield Business Partners is a U.S. located battery manufacturer. The subsidiary recorded nearly USD 10.6 billion annual revenue in FY 2024. The company has planned to invest in ecological battery development and significant recycling of batteries further increases company's income.
   
• Exide Industries is India based battery manufacturer, which recorded nearly USD 1946 million in 2023. The company’s recent investment of more than USD 110 million in its lithium-ion battery manufacturing facility in India for FY 2025.
   
• Tesla is one of the largest EV and green energy providing player located in the U.S. reported revenue of USD 96-97 billion in 2023. Recently company has announced shift to NMC 955 chemistry instead of its NMC 811 models. The company is also developing newer chemistry NMC battery for efficient product solution in the field.
   
• Saft a subsidiary of TotalEnergies recorded more than USD 1.2 million annual revenue in 2023. The company has invested strongly in batteries manufacturing and innovation. The company has initiated mass production of their lithium-ion batteries as a response to growing demand for batteries from ESS.  
   

Nickel Manganese Cobalt Battery Industry News:

• In July 2024, Lohum a battery pack manufacturer and recycler announced investment of approximately USD 135 million for the next three years for the development of manganese lithium-ion batteries. The investment will also support company’s aim to set capacity of over 20 GWh for the same period of years.
   
• In January 2024, International Battery Company (IBC) a environmental friendly large capacity prismatic lithium-ion NMC battery for EVs received pre-series A funding of USD 35 million along with the other investments including Beenext, Veda VC and other Korean and US investors. The fund will help company to develop their products efficient for high temperature and fast charging capability.
   
• In December 2024, Inobat a Slovakia based battery manufacturer raised more than USD 100 million funds from various investors (Amara Raja, Rio Tinto, Lilium, Bromo Capital, IPM Group, and Cielo Capital). Furthermore, to grow the geo presence the company partnered with a China based battery manufacturer- Gotion.
   
• In September 2023, Turntide a US based energy efficient technology developer unveiled their lithium-ion NMC battery pack for off highway EV usage including construction, agriculture equipment, marine and rail.
   

The nickel manganese cobalt battery market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Application

• Automotive
• Industrial
• Energy Storage

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Argentina