28.2% Growth Even Outside China... LFP Leads the Market
Rapid Rise of China's Libode in the Ternary Cathode Segment
From January to April this year, the global market for cathode materials used in electric vehicle batteries grew by 45.6%. The supply of lithium iron phosphate (LFP), an area where Chinese companies have a competitive edge, led the market.
According to SNE Research on June 11, the total amount of cathode materials loaded into registered electric vehicles (including battery electric vehicles, plug-in hybrid vehicles, and hybrid vehicles) worldwide from January to April this year reached 671.8 kilotons (K Ton), marking a 45.6% increase compared to the same period last year. Notably, even in markets excluding China, the amount reached 251.1 kilotons, maintaining a robust growth rate of 28.2%.
Cathode materials are a key component that determines the capacity, output, and lifespan characteristics of lithium-ion batteries, directly affecting the driving range and performance of electric vehicle batteries. Currently, the market is witnessing competition between ternary cathode materials such as nickel cobalt manganese (NCM) and nickel cobalt aluminum (NCA), which emphasize technological advantages, and LFP cathode materials, which offer price competitiveness.
By type of cathode material, the amount of ternary cathode materials loaded was 294.4 kilotons, representing an 18.0% increase compared to the same period last year and showing continued expansion. By company, China’s Ronbay and LG Chem maintained the first and second positions, respectively. China’s Libode experienced rapid growth of 65.9% year-on-year, driven by increased demand for mid-nickel products, and rose to third place.
Korean cathode material companies such as L&F, Ecopro, and POSCO Future M recorded growth rates of 12.0%, 6.7%, and 43.5%, ranking fourth, seventh, and tenth, respectively, but overall, their growth lagged behind that of Chinese companies. SNE Research explained, “Chinese companies are rapidly expanding their global market share by leveraging solid domestic demand, aggressive capacity expansion, and cost competitiveness.”
During the same period, LFP cathode materials reached 377.4 kilotons, a sharp increase of 78.2% compared to the same period last year. LFP accounted for 56.2% of the total cathode material loading, surpassing the halfway mark.
This growth is largely attributed to the supply chain monopoly structure led by China. Currently, the market for LFP cathode materials for electric vehicles is virtually dominated by Chinese companies, with Hunan Yuneng and Dynanonic ranking first and second, respectively.
SNE Research analyzed, “The global market for cathode materials for electric vehicles continues to show solid growth amid the rapid rise of LFP and stable demand for ternary cathode materials. However, market restructuring is accelerating due to the strengthening of the U.S. Inflation Reduction Act (IRA) and the imposition of ultra-high tariffs on Chinese battery materials.” The firm added, “Material companies are required to strategically respond by expanding local production, diversifying supply chains, and reorganizing their product portfolios.”
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