# Battery cathode materials: Overview

Why cheap iron phosphate beat nickel in most new batteries

Source page: https://www.materialinsights.org/chemicals/cathode_materials/overview/

What this tab covers What the chemical is, how big its market is, what it is used for (with shares, volumes, why it wins and what could replace it), and its chain from raw material to end user. Ends with three things to remember.

Cathode active material (CAM) is the powder coated on the aluminium foil of every lithium-ion cell. It is the largest single cost in a cell and it holds the lithium, nickel, cobalt, manganese or iron that decide energy density and price. About 4.95 Mt was shipped worldwide in 2025, about 70% of it lithium iron phosphate (LFP), worth roughly $35-45 billion. China makes nearly all of it. For India, cathodes are the step between imported lithium and the 50 GWh cell programme, and the first Indian LFP plants start in 2026.
 Volume about 4.95 Mt shipped worldwide in 2025, of which LFP 3.47 Mt (SNE Research). GGII's survey of Chinese producers gives 5.03 Mt for China alone, more than SNE's world total, so the two are not comparable; world totals here use SNE, and GGII is used only for the split between chemistries Market value about $35-45 billion (2025, indicative, basis: LFP 3.47 Mt x $4,500-5,000/t plus ternary about 1.15 Mt x $15,000-18,000/t plus LCO 0.125 Mt x about $25,000/t, prices derived from 2025 metal prices and stoichiometry) Growth world shipments up 34% in 2025 (SNE); GGII's China tally rose about 50% and GGII forecasts over 6.5 Mt for China in 2026 on its own basis, with average cathode prices more than 30% above 2025 SNE Research, LIB four major materials SCM report (release of 17 Jun 2026, 2025 data); GGII via Tiger Brokers/Stock News (Feb 2026, China chemistry split); value derived (indicative)

#### Key uses

| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| **LFP for electric vehicle and other power batteries** | 44.6% | about 2.21 Mtbasis | LFP has no nickel or cobalt, is thermally stable and lasts many cycles. Cell-to-pack designs from CATL and BYD closed much of its energy-density gap, so it now dominates Chinese EVs and is spreading to Europe. LFP took about 60% of world cells in 2024 and an expected 63% in 2025 (SMM). GGII via Tiger Brokers (Feb 2026); SMM (Apr 2025) | NMC and NCA for long-range cars LMFP blends Sodium-ion for small cars and two-wheelers |
| **LFP for stationary energy storage (grid, C&I, telecom)** | 25.5% | about 1.26 Mtbasis | Storage buyers want low cost per cycle and safety rather than low weight, which suits LFP. Almost all new grid batteries use it, and storage was the fastest-growing battery use in 2024-2025. GGII via Tiger Brokers (Feb 2026); kg/kWh indicative | Sodium-ion Flow batteries (vanadium, iron) Pumped hydro |
| **Ternary (NMC, NCA) for long-range EVs** | 23.3% | about 1.15 Mt worldwide, of which 0.83 Mt in Chinabasis | Nickel-rich NMC (811, 9-series) and NCA store about 30-50% more energy per kilogram than LFP, so they win where range and weight matter: premium cars, US and European platforms, some trucks. SNE Research (Jun 2026); GGII via Tiger Brokers (Feb 2026); derived | LFP with cell-to-pack LMFP Lithium-rich manganese (LRM) in development |
| **Lithium cobalt oxide (LCO) for phones, laptops and small devices** | 2.5% | 0.125 Mtbasis | LCO has the highest volumetric energy density, which suits thin consumer devices. It is the largest single use of cobalt outside EVs. GGII via Tiger Brokers (Feb 2026) | High-voltage NMC |
| **LMFP, lithium-rich manganese and other new chemistries** | 0.7% | about 34 kt (LMFP 30 kt, LRM 4 kt)basis | Adding manganese to LFP raises voltage and energy density by about 15-20% (indicative) while keeping it cobalt-free. It is often blended with NMC. GGII via Tiger Brokers (Feb 2026) | LFP Mid-nickel NMC |
| **Lithium manganese oxide (LMO) and other** | 3.4% | about 0.17 Mtbasis | LMO is cheap and used in power tools, e-bikes and some blends with NMC. Derived from GGII (indicative) | LFP Sodium-ion |

 Shares are of SNE Research's 4.95 Mt of world cathode shipments in 2025. LFP is SNE's world figure; LCO, LMFP and LMO volumes are GGII's China figures (China makes almost all of them); ternary is the remainder. The LFP split between vehicles and storage is derived from GGII cell shipments and is indicative. Outside China the mix is far more ternary.

#### From raw material to user

1. **Mining and refining** Lithium (290 kt Li mined in 2025), nickel (3.9 Mt), cobalt (310 kt) and manganese are refined into battery-grade carbonate, hydroxide and sulphates, mostly in China (USGS MCS 2026).
2. **Precursor (pCAM)** Nickel, cobalt and manganese sulphates are co-precipitated into a mixed hydroxide; for LFP, iron phosphate is precipitated from iron and phosphoric acid.
3. **Lithiation and calcination** Precursor is mixed with lithium hydroxide (nickel-rich) or carbonate (LFP) and fired in roller-hearth kilns at about 700-900 C for 10-20 hours (indicative).
4. **Finishing** Powder is milled, coated, washed (high nickel) and screened to tight particle sizes and below ppm-level magnetic impurities.
5. **Electrode and cell** Cell makers mix CAM with binder (PVDF) and carbon, coat it on aluminium foil and build cells; cathode is about half of LiB cell cost (Himadri, 2023).
6. **Recycling** Spent cells become black mass, from which lithium, nickel and cobalt are recovered; the EU requires 16% recycled cobalt and 6% lithium and nickel in new EV batteries from 2031.

#### Made from (commodity table)
[Li Lithium](https://www.materialinsights.org/commodities/lithium/)[Ni Nickel](https://www.materialinsights.org/commodities/nickel/)[Co Cobalt](https://www.materialinsights.org/commodities/cobalt/)[Mn Manganese](https://www.materialinsights.org/commodities/manganese/)[P Phosphate rock](https://www.materialinsights.org/commodities/phosphate/)[Fe Iron ore](https://www.materialinsights.org/commodities/iron_ore/)

#### Three things to know

- LFP was 3.47 Mt, about 70%, of the 4.95 Mt of cathode shipped worldwide in 2025, so iron and phosphate, not nickel and cobalt, now dominate cathode volume (SNE Research).
- China makes about 98% of NMC cathode material and almost all LFP; its October 2025 export licensing of high-density LFP, ternary precursors and cathode equipment (Announcement No. 58) is suspended only until 10 November 2026 (IEEFA 2026; HSF Kramer).
- India's first commercial LFP cathode plant, Altmin's 10 kt a year in Hyderabad, starts in 2026, against Benchmark's forecast of 112 GWh of Indian battery demand by 2030 (Benchmark Source, Nov 2025).

#### Read the tabs
[Production route](https://www.materialinsights.org/chemicals/cathode_materials/routes/)[Production](https://www.materialinsights.org/chemicals/cathode_materials/production/)[Feedstocks](https://www.materialinsights.org/chemicals/cathode_materials/feedstocks/)[Cycles](https://www.materialinsights.org/chemicals/cathode_materials/cycles/)[Trading](https://www.materialinsights.org/chemicals/cathode_materials/trading/)[Movement](https://www.materialinsights.org/chemicals/cathode_materials/movement/)[Regulation](https://www.materialinsights.org/chemicals/cathode_materials/regulation/)[Characteristics](https://www.materialinsights.org/chemicals/cathode_materials/characteristics/)[Emissions](https://www.materialinsights.org/chemicals/cathode_materials/emissions/)

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/cathode_materials/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/cathode_materials/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/cathode_materials/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/cathode_materials/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/cathode_materials/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/cathode_materials/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/cathode_materials/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/cathode_materials/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/cathode_materials/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/cathode_materials/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/cathode_materials/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/cathode_materials/links/index.md)