Market Insight-Global Li ion Battery Ternary Precursor Market Overview 2025
Global Li ion Battery Ternary Precursor Market Was Valued at USD 12405.56 Million in 2024 and is Expected to Reach USD 21261.5 Million by the End of 2033, Growing at a CAGR of 6.17% Between 2025 and 2033.– Bossonresearch.com
Li ion Battery Ternary Precursor are intermediate products with highly uniform distribution of various elements prepared by a solution process. They can be converted into finished products by chemical reaction and play a decisive role in the performance index of finished products. The cathode material is the key material for lithium-ion batteries, and the precursor is an important raw material for the production of lithium-ion cathode materials. They are used in energy storage devices for various new energy vehicles, 3C electronics, digital cameras, drones, robots, solar energy, wind energy, as well as communication equipment and backup power for base stations.
With the continued penetration of new energy vehicles (NEVs) worldwide, demand for ternary precursors is expected to rise steadily. Alongside the accelerated decline in nickel and cobalt prices since 2023, the price gap between ternary batteries and lithium iron phosphate (LFP) batteries has been continuously narrowing — falling from about USD 0.02/Wh in early 2021 to USD 0.006/Wh by December 2024.
However, as competition among automakers enters a white-hot stage, industry rivalry is evolving from price competition to all-round competition. Ternary batteries, with their higher energy density, faster charging speed, and superior low-temperature performance, are poised to regain market favor.
In addition, the European auto market is expected to return to a growth trend under the dual catalysts of supply optimization and stricter carbon emission policies, which in turn may drive sustained growth in demand for ternary batteries.
Since the second half of 2024, lithium iron phosphate (LFP) batteries have rapidly gained market share in new energy vehicles, exerting a strong impact on the ternary battery market, whose market share has continued to decline. As of June 2025, in the Chinese market, the installed capacity ratio of ternary cells to LFP cells has reached a sharp disparity of 18.4% to 81.6%. With mid- to low-end new energy vehicles generally adopting LFP cells and many ternary manufacturers also deploying LFP projects, the survival space for ternary precursor producers is facing severe challenges.
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The continued market downturn is mainly due to:
（1）The global new energy vehicle market growth slowdown, particularly in some European and U.S. countries, where the phase-out of subsidies has weakened demand for ternary materials.
（2）Changes in the international trade environment, where tariff increases and other trade barriers in some countries have affected exports.
Looking ahead to the second half of the year, constrained by the restructuring of the global supply chain and changes in trade conditions, the scale of ternary precursors is unlikely to recover to the high levels of previous years.
Figure 1. Figure Global Li ion Battery Ternary Precursor Market Size (M USD)
Source: Bossonresearch.com, 2025
China Market Price Trends
From January to July 2025, ternary precursor prices showed distinct phased fluctuations, which can be summarized into three stages: “rapid surge – slight correction – stabilization and rebound.”
January 2025: Prices began a slight upward trend. The price of 6-series power-type ternary precursor rose to USD 8,900/ton, a MoM increase of 0.4%, mainly due to steady strengthening of nickel salt prices.
Late February: The sudden cobalt export ban in the Democratic Republic of Congo triggered market turmoil. Cobalt sulfate prices surged by USD 361/ton in one month, pushing precursor prices up to USD 8,900/ton.
March: Raw material prices rose further. Cobalt sulfate jumped by USD 2,500/ton in a single month, coupled with a USD 196/ton increase in nickel sulfate, jointly driving precursor prices to break the USD 9,700/ton mark, reaching USD 9,900/ton, a 9.9% MoM increase.
April: Although cobalt sulfate prices continued to rise by USD 500/ton, precursor price growth narrowed to 2.6%, closing at USD 10,000 /ton, indicating weakening demand-side support.
May: With major raw material prices falling across the board (nickel sulfate down USD 17/ton, cobalt down USD 49/ton, manganese down USD 12/ton), precursor prices dropped to USD 10,000/ton.
June: The downtrend continued, with prices further declining to USD 10,000/ton, mainly due to lower-than-expected car sales in the terminal market.
July: As nickel and cobalt prices rebounded, precursor prices stabilized and began to rise slightly, closing at USD 10,014/ton. However, since demand for ternary materials has not significantly rebounded, precursor producers’ acceptance of higher raw material prices remains limited, resulting in only modest price increases.
Since the discount coefficient for ternary precursors is effectively controlled by downstream cell enterprises, precursor manufacturers consistently lack bargaining power, and the discount coefficient has remained stable.
Overall, from January to July, precursor prices were mainly affected by two factors: fluctuations in upstream raw material prices and changes in downstream demand.
Cost side: Nickel sulfate remains relatively expensive, with supply expected to stay tight; cobalt sulfate supply is currently stable but uncertain in two months’ time. Raw material prices are rising moderately, seemingly awaiting a demand recovery.
Demand side: With the traditional peak season for auto sales approaching, precursor producers have started stocking up.
In summary:
Q3 2025: Prices are likely to rise under the dual effect of tight raw material supply and stronger demand.
Q4 2025: As precursor producers gradually finish stocking for the peak season and nickel/cobalt supply tightness eases, prices may enter a downward phase.
Key Development Trends
Industry Concentration Rising
In 2025, industry concentration in ternary precursors has continued to rise, with the competitive landscape showing a “strong-get-stronger” pattern. The industry CR3 increased from 57% in January to 59% in July, while CR5 rose from 75% to 78%. The market is accelerating toward top enterprises.
The industry faces three core challenges:
（1）Raw material price volatility increases operational pressure. Integrated enterprises with nickel and cobalt resource layouts have a cost-control advantage. They can lower production costs through self-supply and reduce supply chain risks, giving them leverage in competing for downstream customers.
（2）Overcapacity is a prominent issue. With the lithium battery industry growth slowing, average capacity utilization in the precursor industry has fallen to around 40%. Small and medium enterprises, facing scale disadvantages and cost pressures, may exit, while leading companies continue to expand their market share.
（3）Customer structure reshaping the industry landscape. Firms that relied on Japanese and Korean overseas clients face sharp order reductions, while those deeply tied to domestic leading battery companies enjoy relatively stable orders. This restructuring is accelerating industry reshuffling.
Looking ahead, industry concentration is expected to further increase. During capacity clearing, leading enterprises with resource security, technological accumulation, and stable customer bases will continue to expand their share, while small and medium enterprises lacking competitiveness will face greater survival pressure. By year-end, CR5 may exceed 80%, with competition increasingly concentrated among top players.
Huge Development Potential for 9-Series Products
Although 9-series products currently account for just over 10% of total types, their growth potential is immense. At present, they are mainly used in the small-power market, and some overseas automakers are highly interested in them. However, their technology still has room for significant development.
If breakthroughs are achieved in thermal stability, 9-series products will have strong competitiveness for high-end new energy vehicles pursuing high energy density. Moreover, they are highly compatible with high-end products such as eVTOLs and robots.
Currently, many manufacturers are accelerating the advancement of semi-solid and solid-state battery technologies. As one of the preferred cathode materials for solid-state batteries, ternary 9-series cathode materials have enormous future growth potential.
Global Li ion Battery Ternary Precursor Market: Competitive Landscape
The global lithium-ion battery ternary precursor market is increasingly concentrated, with China holding a dominant and growing share. From 2022 to 2024, leading producers such as Zhongwei New Materials, GEM, and Huayou Cobalt strengthened their positions, and by 2025 the market has shown a clear “strong-get-stronger” pattern. Industry concentration ratios rose steadily, with CR3 climbing from 57% in January to 59% in July and CR5 from 75% to 78%, reflecting the accelerating shift toward top enterprises. However, the sector faces persistent challenges: raw material price volatility that pressures margins but favors vertically integrated players with nickel and cobalt resources; overcapacity issues, with average utilization rates falling to around 40%, forcing weaker small and mid-sized firms toward exit; and customer restructuring, as reliance on Japanese and Korean clients declines while stronger ties to Chinese battery leaders provide stability. Looking ahead, industry consolidation is expected to continue, with CR5 likely to surpass 80% by year-end 2025, further concentrating competition among a handful of global leaders.
Key players in the Li ion Battery Ternary Precursor Market include:
CNGR Corporation
GEM Co., Ltd
Umicore
Zhejiang Huayou Cobalt
Brunp Recycling
Jiana Energy
Fangyuan
Kelong New Energy
Ronbay Technology
Zhejiang Power
Tanaka Chemical Corporation
Jinchuan Group
Hunan Changyuan Lico
GanfengLithium
Greatpower Technology
Others
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