Nickel Hydroxide Market (Europe) to Grow from USD 691.7 Million in 2025 to USD 1,172.6 Million by 2035 — Battery Materials & EV Growth Drive Demand in APAC, Europe, USA & Saudi Arabia.” Fact.MR

According to a new study by Fact.MR, a market research and competitive-intelligence provider, the global nickel hydroxide market is poised to climb from USD 1.47 billion in 2025 to USD 3.4 billion by 2035, reflecting an 8.9% compound annual growth rate (CAGR). The sharp rise in electric-vehicle (EV) production, battery-chemistry optimization, and energy-storage investments will anchor demand over the next decade.

Battery-Grade Nickel Hydroxide Dominates with 72% Share

Battery-grade nickel hydroxide remains the industry’s cornerstone, representing roughly 72% of global consumption in 2025. This grade—valued for its high purity, consistent particle morphology, and superior discharge capacity—is critical to producing nickel–metal hydride (Ni-MH) and emerging nickel–cobalt–manganese (NCM) cathodes.

“Automakers and cell manufacturers are prioritizing higher-nickel chemistries to achieve greater energy density,” noted a senior analyst at Fact.MR. “Battery-grade nickel hydroxide delivers the performance consistency needed for large-scale EV production and grid-storage solutions.”

Demand is further strengthened by regulatory decarbonization targets, particularly across Europe and East Asia, accelerating EV adoption through 2035.

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Nickel–Metal Hydride (Ni-MH) Cells Account for 41% Application Share

The Ni-MH segment continues to command the largest share of end-use applications—41% in 2025—supported by its stability, recyclability, and proven performance in hybrid-electric vehicles (HEVs), power tools, and backup energy systems.

While lithium-ion batteries dominate high-capacity EV applications, Ni-MH chemistry remains favored for mid-range hybrids and industrial uses requiring long cycle life and thermal stability. The ongoing transition of major OEMs toward dual-chemistry production is sustaining nickel hydroxide procurement volumes worldwide.

Asia Pacific to Maintain Production Leadership

The Asia Pacific region will retain its position as the global hub for nickel hydroxide production and consumption, led by China, Japan, and South Korea—countries housing the majority of cathode-active-material manufacturing.

• China is expected to record a 9.6% CAGR, supported by state-backed EV incentives and vertically integrated battery supply chains.
• Japan continues leveraging its Ni-MH expertise for hybrid vehicles, maintaining 7.8% growth through 2035.
• South Korea, home to leading cathode and precursor suppliers, is projected to grow at 8.3% CAGR.

“Asia’s dominance lies not only in raw-material availability but in complete value-chain integration—from nickel refining to finished cell assembly,” explained the Fact.MR analyst.

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North America and Europe Accelerate Localization

North America is projected to advance at a 9.2% CAGR as the U.S. and Canada invest in onshore battery-material processing to reduce supply-chain dependencies on Asia. Federal EV-incentive programs and the Inflation Reduction Act (IRA) are spurring domestic demand for nickel-rich cathodes and hydroxide precursors.

In Europe, market growth of 8.4% CAGR through 2035 is driven by major investments from the EU’s Battery Alliance, with Germany, France, and the Nordics constructing gigafactories focused on high-performance cathode materials.

Technological Trends Reshaping Nickel Hydroxide Production

1. High-Purity Synthesis Routes: Manufacturers are adopting controlled precipitation and sol-gel techniques to achieve sub-micron particle uniformity, enhancing conductivity and cycle stability.
2. Cobalt Substitution: With cobalt costs and ESG concerns rising, producers are developing low-cobalt and cobalt-free nickel hydroxide for next-generation cathodes.
3. Recycling Integration: Urban-mining initiatives in Europe, Japan, and the U.S. are extracting nickel hydroxide from spent Ni-MH and Li-ion cells, creating a secondary materials market projected to exceed USD 400 million by 2035.
4. AI-Enabled Process Optimization: Adoption of machine-learning quality control is reducing energy use and production variability by 8–12%.

Key Growth Drivers

• EV Market Expansion: Global EV sales are forecast to surpass 90 million units annually by 2035, fueling exponential demand for nickel-based cathodes.
• Grid-Scale Energy Storage: Utilities are deploying Ni-based systems for frequency regulation and backup storage, particularly in regions prioritizing renewable-energy integration.
• Sustainable Supply Chains: Mining companies are shifting toward low-carbon extraction and hydrometallurgical refining, improving ESG compliance and cost efficiency.

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Competitive Landscape: Integration and Sustainability Define Strategy

The nickel hydroxide market is moderately consolidated, with the top 10 manufacturers accounting for approximately 55–60% of global supply. Leading players include:

• Norilsk Nickel PJSC
• Umicore SA
• Sumitomo Metal Mining Co., Ltd.
• Tanaka Chemical Corporation
• BASF SE
• Jiangmen Chancsun Chemical Co., Ltd.
• CITIC Dameng Mining Industries Ltd.
• Zhejiang Feng Feng Nickel Hydroxide Co., Ltd.

Strategic initiatives include vertical integration with battery OEMs, long-term supply contracts, and ESG-aligned nickel sourcing.

For instance, Umicore and BASF are expanding European cathode precursor plants to secure local feedstock, while Chinese suppliers strengthen recycling capacity to meet closed-loop mandates.

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Market Outlook to 2035

Fact.MR expects sustained demand momentum through 2035, supported by:

• Strong policy frameworks encouraging EV adoption.
• Continuous cathode innovation increasing nickel intensity per kWh.
• Circular-economy models transforming recycling into a major feedstock source.

By 2035, global nickel hydroxide production capacity is projected to exceed 1.2 million tons, ensuring a stable supply for both legacy Ni-MH applications and advanced EV battery systems.

“The next decade will mark the convergence of clean-energy policy, cathode innovation, and circular-supply dynamics,” stated Fact.MR’s lead analyst. “Producers capable of balancing ESG compliance with cost-competitive scaling will shape the future of nickel-based battery materials.”

About Fact.MR

Fact.MR is a global market research and consulting agency delivering actionable intelligence across 1,500 markets and 80 countries. With deep expertise in energy materials, automotive, and industrial technology, Fact.MR provides data-driven insights to help organizations make informed strategic decisions.