Global Nickel Hydroxide Market Forecast 2025–2035: EV Battery Production and Energy Storage Initiatives Drive Rapid Growth in Asia-Pacific and Europe

The globalnickel hydroxide market is projected to grow from USD 1.9 billion in 2025 to approximately USD 3.2 billion by 2035, recording an absolute increase of USD 1.3 billion over the forecast period. This translates into total growth of 68.4%, with demand forecast to expand at a compound annual growth rate (CAGR) of 5.2% between 2025 and 2035.

Overall sales are expected to grow by nearly 1.68X during the same period, supported by surging adoption of nickel-based batteries in electric vehicles (EVs), growing use in energy storage systems, and rising demand from industrial electroplating and chemical synthesis applications. The market continues to benefit from the global energy transition and decarbonization goals that prioritize sustainable battery materials. 

Nickel Hydroxide Market Value Analysis

Between 2025 and 2030, the global nickel hydroxide market is projected to expand from USD 1.9 billion to USD 2.5 billion, adding nearly USD 600 million, which represents 46.1% of the total forecast growth for the decade.

This initial phase of growth will be shaped by the rapid scaling of EV manufacturing capacity, increasing NiMH and Li-ion battery production, and improved material purity standards enabling enhanced cycle life and energy density. Manufacturers are emphasizing battery-grade production with superior tap density, controlled morphology, and high discharge efficiency.

From 2030 to 2035, the market will advance from USD 2.5 billion to USD 3.2 billion, adding another USD 700 million, accounting for 53.9% of total ten-year expansion. This stage will see widespread integration of recycled nickel hydroxide, expansion of solid-state battery chemistries, and localized raw material processing under emerging green industrial policies.

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Why is Nickel Hydroxide Demand Growing?

The transition toward electrified transport, renewable energy storage, and sustainable material sourcing is fundamentally reshaping nickel hydroxide consumption patterns worldwide.

Nickel hydroxide remains a core cathode material in NiMH, NiCd, and some Li-ion batteries, providing high energy density, long cycle life, and recyclability advantages. With global EV production expected to exceed 30 million units annually by 2035, battery manufacturers are scaling nickel-based chemistries to balance cost, performance, and sustainability.

Energy storage systems (ESS) are also accelerating adoption, driven by renewable integration, grid stability programs, and decentralized power generation trends.

Additionally, nickel hydroxide’s established use in electroplating, chemical catalysts, and pigments ensures stable industrial demand.

Segmental Insights

By Grade: Battery Grade Leads with 61.5% Market Share

The battery-grade segment dominates the global market, accounting for over 60% share in 2025, as major producers enhance purity levels and electrochemical performance.

• High-purity Ni(OH)₂ enables consistent charge–discharge efficiency and long-term stability.
• Manufacturers focus on particle engineering and surface coating technologies to enhance electrode reliability.

By Application: Batteries Account for 72.1% Share

Battery applications—NiMH, NiCd, and Li-ion—represent the primary demand segment, with NiMH batteries maintaining strong adoption in hybrid electric vehicles (HEVs) and portable electronics.

• NiCd batteries retain niche use in aviation, power backup, and military equipment.
• New chemistries incorporating nickel hydroxide as an additive in next-generation Li-ion systems are under research commercialization.

By End Use: Electric Vehicles and Energy Storage Leading Expansion

The electric vehicle segment is forecast to expand at 7.1% CAGR through 2035, with manufacturers seeking cost-stable and recyclable battery materials.

Energy storage systems (ESS) are growing rapidly as countries implement renewable grid balancing programs.

Regional Analysis

Region CAGR (2025–2035) Key Growth Drivers Asia Pacific 5.6% Dominant EV and battery production hubs in China, Japan, and South Korea. North America 5.8% IRA-driven domestic battery manufacturing and nickel supply chain localization. Europe 5.1% EU Green Deal initiatives and gigafactory expansion in Germany and France. Latin America 4.8% Emerging refining projects and export-oriented mining investments.

Asia Pacific leads with more than 45% of total global market share, driven by vertically integrated operations and advanced battery industries.

Market Drivers and Trends

1. Electrification of Transport: Surging EV and HEV production requires stable, high-performance nickel chemistries.
2. Energy Transition: Renewable storage installations rely on nickel-based batteries for grid reliability.
3. Circular Economy Integration: Recycled nickel hydroxide is gaining traction to reduce dependency on mined feedstocks.
4. Technological Advancements: Innovations in particle morphology and coating enhance energy retention and reduce degradation.

Challenges

• Raw Material Volatility: Nickel price fluctuations affect cost predictability.
• Environmental Concerns: Mining and refining processes require improved sustainability frameworks.
• Competitive Chemistries: The rise of LFP batteries may challenge Ni-based market share in some EV segments.

Competitive Landscape

The nickel hydroxide market is moderately consolidated, led by major producers integrating upstream mining and downstream battery materials.

Key Companies:

• Norilsk Nickel
• Sumitomo Metal Mining Co., Ltd.
• Umicore N.V.
• Tanaka Chemical Corp.
• Jilin Jien Nickel Industry Co. Ltd.
• GEM Co. Ltd.
• Nickel Powder Co. Ltd.

Producers are emphasizing capacity expansion, purity optimization, and recycling integration to enhance sustainability and maintain competitiveness. Strategic partnerships with EV and battery OEMs are increasingly shaping long-term procurement strategies.

Outlook: Toward Sustainable Battery Materials

Nickel hydroxide is evolving from a traditional chemical intermediate into a strategic enabler of the global clean energy economy. Its role in battery energy density, recyclability, and circular manufacturing positions it as a cornerstone material through 2035 and beyond.

With continued technological innovation, Fact.MR expects the market to exceed USD 3.2 billion by 2035, underpinned by EV expansion, storage system adoption, and advanced material design for energy efficiency and sustainability.

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