Ternary Cathode Materials (TCMs) Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type of Ternary Cathode Material (NMC, NCA, LMO, LiCoO2, Others), By Product Formulation (Powder Form, Coated Form, Composite materials, Film form, Granulated form), By Application (Electric Vehicles (EVs), Consumer Electronics, Grid Energy Storage Systems, Industrial Applications, Medical Devices), By Production Technology (Chemical Synthesis, Solid-State Synthesis, Hydrothermal Synthesis, Sol-Gel Method, Spray Pyrolysis), By End-User (Automotive, Electronics, Renewable Energy, Telecommunications, Aerospace) and Region Forecast 2020-2031

Ternary Cathode Materials (TCMs) Market size was valued at US$ 12,500 million in 2024 and is expected to reach US$ 24,514.4 million by 2031, growing at a significant CAGR of 9.8% from 2025-2031. The Ternary cathode materials refer to a class of advanced battery components made from a combination of three key metal elements—typically nickel (Ni), cobalt (Co), and manganese (Mn)—used primarily in lithium-ion batteries. These materials are essential in enhancing energy density, thermal stability, and overall performance of rechargeable batteries, particularly in electric vehicles (EVs), energy storage systems, and consumer electronics. The most common formulations include NCM (nickel cobalt manganese) and NCA (nickel cobalt aluminum), with varying ratios designed to balance safety, cost, and capacity. Ternary cathode materials have become critical for next-generation battery development due to their ability to deliver high energy output while maintaining cycle life and safety.

The ternary cathode materials market is witnessing robust growth, driven by the global push towards electrification, especially in the automotive sector. As governments impose stricter emission regulations and offer incentives for electric vehicle adoption, battery manufacturers are increasingly turning to high-performance ternary materials to meet efficiency and range requirements. Furthermore, rapid advancements in battery technologies and growing investment in renewable energy storage are expanding the application scope of these materials. Asia-Pacific, particularly China and South Korea, dominates the market owing to large-scale battery manufacturing infrastructure. However, regions such as Europe and North America are also ramping up production in line with their EV expansion goals.

Facts & Figures

• Nickel-Cobalt-Manganese (NCM) cathode materials accounted for approximately 35% of lithium-ion cathode material usage in 2023, while Nickel-Cobalt-Aluminum (NCA) contributed about 30%, making ternary chemistries dominant globally.
• In 2023, global production of NCM cathode materials exceeded 350 kilotons, with NCA output around 90 kilotons, supporting long?range electric vehicle applications and energy storage systems.
• China controlled around 85% of global cathode active material capacity in 2024, with South Korea and Japan supplying the remainder. Together, Korea and Japan contributed approximately 25% of global capacity, with exports from Korea totaling about 75,700?tons of ternary materials from January to April 2024.

key Developments

• In May 2025, the production of ternary cathode materials saw a notable rise of 3.52% month-over-month (MoM) and 23.91% year-over-year (YoY), indicating a strong rebound in manufacturing activity. The overall operating rate of the industry reached 43%, reflecting improved utilization rates. However, the market experienced mixed signals, with modest price increases amidst persistent challenges such as supply chain disruptions and fluctuating demand patterns in both the new energy vehicle (NEV) and consumer electronics sectors.
• In April 2025, Umicore, a Belgian-based multinational and major producer of battery cathode materials, announced a strategic shift due to pressures from China's dominance in the electric vehicle (EV) battery materials market. The company reported a 50% decline in its battery cathode materials capital expenditure and acknowledged the need for industry consolidation. Umicore's CEO emphasized the importance of exploring partnerships to strengthen the company's position in the global market.
• In June 2025, the ternary cathode precursor market showed mixed signals, with modest price increases against a backdrop of persistent market challenges. This complex market continues to navigate supply chain disruptions while adjusting to fluctuating demand patterns in both the new energy vehicle (NEV) and consumer electronics sectors.

Ternary Cathode Materials (TCMs) Market Segmentation

Based on the type of ternary cathode materials 

• NMC (Nickel Manganese Cobalt)
• NCA (Nickel Cobalt Aluminum)
• LMO (Lithium Manganese Oxide)
• LiCoO2 (Lithium Cobalt Oxide)
• Other Novel Ternary Compositions

Based on the type of ternary cathode materials, the NMC (Nickel Manganese Cobalt) segment is anticipated to lead the market, driven by its balanced performance, cost-effectiveness, and wide application across electric vehicles and energy storage systems. NMC cathodes offer a favourable combination of high energy density, thermal stability, and longer cycle life compared to other cathode chemistries. This versatility makes NMC highly attractive to battery manufacturers seeking to optimize safety and performance while managing material costs. Furthermore, continuous improvements in NMC formulations, such as the development of high-nickel variants (e.g., NMC 811), are enhancing energy capacity and reducing reliance on cobalt, which is costly and ethically contentious. Major automakers and battery producers globally prefer NMC for its scalability and adaptability across different EV models and grid storage applications. Consequently, the NMC segment is expected to maintain a dominant position in the ternary cathode materials market over the coming years.

Based on the application 

• Consumer Electronics
• Grid Energy Storage Systems
• Industrial Applications
• Medical Devices

Among the application segments, Electric Vehicles (EVs) are projected to lead the ternary cathode materials market, driven by the accelerating global transition to clean transportation. EVs require high-energy-density batteries to provide longer driving ranges and improved performance, making ternary cathode materials such as NMC and NCA ideal choices due to their superior energy storage capabilities. According to the International Energy Agency (IEA), global EV sales surpassed 10 million units in 2023, reflecting strong consumer demand and government incentives aimed at reducing carbon emissions. This surge directly fuels the need for reliable, high-performance cathode materials that can support rapid charging and extended battery life. Furthermore, the shift toward electric mobility is supported by stringent emission regulations and substantial investments in EV infrastructure worldwide. As a result, the electric vehicle sector remains the dominant application area, significantly propelling the growth and innovation within the ternary cathode materials market.

Based on the product formulation 

• Powder Form
• Coated Form
• Composite Materials
• Film Form
• Granulated Form

Among the product formulation segments, the powder form of ternary cathode materials is anticipated to lead the market, owing to its widespread use and versatility in lithium-ion battery manufacturing. Powdered cathode materials serve as the fundamental raw input for electrode production, enabling precise control over particle size, purity, and homogeneity, which are critical for battery performance and safety. The powder form allows manufacturers to tailor material properties to meet specific requirements such as energy density, cycle life, and thermal stability. Additionally, powder formulations are compatible with various electrode fabrication techniques, including slurry coating and dry pressing, making them highly adaptable across different battery designs. As battery production scales up, the demand for high-quality cathode powders continues to grow, particularly in electric vehicles and grid storage sectors. Consequently, the powder form remains the dominant and preferred formulation in the ternary cathode materials market, driving ongoing R&D to improve its structural and electrochemical characteristics.

Based on the production technology 

• Chemical Synthesis
• Solid-State Synthesis
• Hydrothermal Synthesis
• Sol-Gel Method
• Spray Pyrolysis

Among the production technology segments, chemical synthesis is anticipated to lead the ternary cathode materials market due to its ability to produce high-purity, uniform particles with excellent electrochemical performance. This method involves precisely controlling the chemical reactions to synthesize cathode materials at the molecular level, allowing manufacturers to tailor the composition and morphology for optimized battery characteristics such as energy density, cycle stability, and safety. Chemical synthesis techniques, including co-precipitation and precipitation methods, enable scalable and cost-effective production, which is essential to meet the growing demand from electric vehicles and energy storage systems. Additionally, this technology supports the manufacture of advanced high-nickel and low-cobalt cathodes, responding to industry trends focused on reducing reliance on scarce resources while enhancing performance. As a result, chemical synthesis remains the preferred production method among key industry players, driving innovation and growth within the ternary cathode materials market.

Based on the end-use 

• Automotive
• Electronics
• Renewable Energy
• Telecommunications
• Aerospace

Among the end-use segments, the automotive sector is anticipated to lead the ternary cathode materials market, driven primarily by the rapid adoption of electric vehicles (EVs) worldwide. As governments implement stricter emission regulations and provide incentives for clean mobility, automakers are increasingly relying on high-performance lithium-ion batteries featuring ternary cathode materials like NCM and NCA to meet consumer demand for longer driving ranges and enhanced safety. The automotive industry’s shift toward electrification is accelerating, with global EV sales surpassing 10 million units in 2023 according to the International Energy Agency. This growth fuels substantial demand for cathode materials that deliver high energy density and durability. Additionally, automotive manufacturers are investing heavily in battery technology innovation and supply chain integration to secure stable access to these critical materials. Consequently, the automotive segment remains the most significant end-use market for ternary cathode materials, shaping industry trends and driving technological advancements.