Li-ion Battery Ternary Precursor Market Set to Hit US$ 41.31 Billion by 2032 as EV Battery Supply Chain Accelerates

Market Overview -

The global Li-ion Battery Ternary Precursor market is witnessing robust expansion as electrification, renewable energy integration, and consumer electronics innovation continue to reshape the energy storage landscape. According to the latest industry analysis, the market was valued at US$ 22.64 billion in 2025 and is projected to reach US$ 41.31 billion by 2032, registering a CAGR of 9.1% during the forecast period.

Ternary precursor materials serve as intermediate chemical products prepared through solution-based processes with highly uniform element distribution. These materials are later converted into cathode active materials, which play a decisive role in determining lithium-ion battery performance, including energy density, lifespan, safety, and charging efficiency. As the core raw material for cathode production, ternary precursors are essential across electric vehicles, 3C electronics, robotics, drones, renewable energy storage, and telecom backup systems.

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In 2024, global production of Li-ion Battery Ternary Precursors reached approximately 1,145 kilotons, while the average market price stood at around US$ 16.65 per kilogram, reflecting both scale expansion and cost optimization efforts across the industry.

Key Market Drivers -

The rapid development of the new energy vehicle sector remains the most influential driver of market growth. Governments worldwide are strengthening electrification policies, emission regulations, and battery localization initiatives, which are accelerating demand for high-performance cathode materials. As EV production scales, the need for stable and high-quality precursor materials is rising accordingly.

Simultaneously, the 3C electronics segment continues to generate steady demand due to increasing smartphone shipments, wearable technology adoption, and portable computing devices requiring advanced battery performance. Lithium batteries are also gaining support as recyclable energy storage solutions, supported by national sustainability strategies and circular economy initiatives.

Another major driver is ongoing technological breakthroughs in ternary precursor chemistry. Innovations in composition optimization, particle morphology control, and recycling integration are improving battery safety and energy density while lowering production costs. These advancements are expanding application scope across energy storage systems and industrial electronics.

Industry Profitability and Pricing Dynamics -

Despite strong demand growth, the Li-ion Battery Ternary Precursor industry operates under competitive pricing pressure. The overall gross profit margin typically ranges between 10% and 20%, with some companies reporting margins below 10% due to raw material volatility and capacity expansion costs.

Market participants are increasingly focusing on vertical integration, recycling capabilities, and technology differentiation to maintain profitability. Strategic partnerships between battery manufacturers, precursor suppliers, and automotive OEMs are also becoming more common, strengthening supply chain stability.

Segmentation Insights -

The market is primarily segmented by type into NCM and NCA precursor materials. Among these, NCM type dominates the global landscape, accounting for roughly 84% of total sales due to its balanced performance characteristics and widespread adoption across electric vehicles and consumer electronics.

By application, new energy vehicles represent the largest demand segment, contributing approximately 66% of global consumption. This dominance highlights the central role of ternary precursors in supporting EV battery production. The 3C electronics segment follows, while other applications include stationary energy storage, industrial equipment, and communication infrastructure.

Regional Market Analysis -

Asia Pacific remains the global manufacturing hub for Li-ion Battery Ternary Precursors, led by China, South Korea, and Japan. The region benefits from strong battery supply chain integration, large EV production volumes, and supportive industrial policies. China, in particular, continues to expand precursor capacity and recycling infrastructure.

North America is experiencing accelerated growth driven by battery localization initiatives, EV incentives, and investments in domestic cathode material production. Europe is also strengthening its position through gigafactory expansion, sustainability regulations, and strategic partnerships focused on battery materials.

Emerging markets across South America, the Middle East, and Africa are gradually entering the supply chain, particularly through resource development, refining, and battery assembly investments.

Competitive Landscape -

The global Li-ion Battery Ternary Precursor market features a mix of established chemical manufacturers, battery material specialists, and vertically integrated energy companies. Key players profiled in the report include:

GEM Co., Ltd

Umicore

CNGR Corporation

Brunp Recycling

Tanaka Chemical Corporation

Kelong New Energy

Zhejiang Huayou Cobalt

Fangyuan

Greatpower Technology

Ronbay Technology

Hunan Changyuan Lico

Ganfeng Lithium

Jiana Energy

Jinchuan Group

Zhejiang Power

Competition is centered on scale, cost efficiency, technology innovation, and recycling capabilities. Many leading companies are investing heavily in capacity expansion, sustainable sourcing, and next-generation precursor chemistry.

Technology Trends and Innovation -

Technological progress is reshaping the ternary precursor market through improvements in material purity, particle uniformity, and compositional flexibility. Advanced precursor formulations are enabling higher nickel content batteries, which provide improved energy density for long-range electric vehicles.

Recycling integration is also emerging as a critical trend. Closed-loop battery material systems allow recovery of valuable metals, reducing supply risks and environmental impact. Automation and digital process control are further improving manufacturing efficiency and quality consistency.

In parallel, research into alternative cathode chemistries and hybrid material systems is expanding the role of precursors across emerging battery architectures.

Future Outlook -

The outlook for the Li-ion Battery Ternary Precursor market remains highly positive as electrification trends continue to accelerate globally. EV penetration, renewable energy storage deployment, and portable electronics demand are expected to sustain strong growth throughout the forecast period.

Manufacturers are likely to focus on localization strategies, sustainability compliance, and performance optimization to remain competitive. As battery technology evolves, precursor materials will remain a critical component influencing overall battery performance and cost structure.

The report provides comprehensive quantitative and qualitative insights, including sales volumes, revenue forecasts, pricing analysis, and competitive positioning across regions, types, and applications. It is designed to support manufacturers, new entrants, investors, and supply chain stakeholders in developing effective business strategies and identifying growth opportunities in the rapidly evolving battery materials ecosystem.

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Benefits of purchasing QYResearch report:

Competitive Analysis:

QYResearch provides in-depth Li-ion Battery Ternary Precursor analysis, including information on key company profiles, new entrants, acquisitions, mergers, large market shear, opportunities, and challenges. These analyses provide clients with a comprehensive understanding of market conditions and competitive dynamics, enabling them to develop effective market strategies and maintain their competitive edge.

Industry Analysis:

QYResearch provides Li-ion Battery Ternary Precursor comprehensive industry data and trend analysis, including raw material analysis, market application analysis, product type analysis, market demand analysis, market supply analysis, downstream market analysis, and supply chain analysis and trend analysis. These analyses help clients understand the direction of industry development and make informed business decisions.

Market Size:

QYResearch provides Li-ion Battery Ternary Precursor market size analysis, including capacity, production, sales, production value, price, cost, and profit analysis. This data helps clients understand market size and development potential, and is an important reference for business development.

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