Nickel Manganese Cobalt (NMC) Battery Market
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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.
| Report Attribute | Details |
|---|---|
| Base Year: | 2024 |
| Nickel Manganese Cobalt Battery Market size in 2024: | USD 30.5 Billion |
| Forecast Period: | 2025 - 2034 |
| Forecast Period 2023 - 2032 CAGR: | 14.8 |
| 2023 Value Projection: | USD 123.4 Billion |
| Historical Data for: | 2021 - 2024 |
| No of Pages: | 150 |
| Tables, Charts & Figures: | 45 |
| Segments Covered: | Application |
| Growth Drivers: |
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| Pitfalls Challenges: |
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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.
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.
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.
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.
Market, By Application
The above information has been provided for the following regions and countries:
The market features key players such as A123 Systems, Clarios, Contemporary Amperex Technology, Ding Tai Battery Company, Duracell, Energon, Exide Technologies, Koninklijke Philips, Lithiumwerks, Prologium Technology, Saft, and Tesla.
The global market for nickel manganese cobalt battery was reached USD 30.4 billion in 2024 and is projected to grow at a 14.8% CAGR from 2025 to 2034, driven by its extensive use in EVs, ESS, and consumer electronics.
The U.S. NMC battery market is projected to exceed USD 35.2 billion by 2034, led by federal and state incentives, stricter emission regulations, and the push for energy grid modernization and renewable energy integration.
The automotive segment is expected to grow at a CAGR of over 12.9% through 2034, driven by the increasing adoption of EVs and advancements in fast-charging technologies.