Lithium Cobalt Oxide Market Size & Share, by Grade (Industrial, Battery); Application - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers

• Increased focus on energy density and performance optimization: Higher energy density, faster charging times, and longer cycle lives are required in lithium cobalt oxide batteries due to the increased popularity of EVs, portable gadgets, and grid-scale energy storage systems. By utilizing advancements in materials science and battery engineering, battery makers are allocating resources toward research and development aimed at improving the safety and performance of lithium cobalt oxide batteries.
  
  Also, compared to lead-acid batteries, which have an energy density of about 75 Wh/kg, lithium-ion batteries have some of the highest energy densities of any commercial battery technology, reaching as high as 330 Wh/kg. Furthermore, Li-ion cells are appropriate for high-power applications such as transportation since they can provide up to 3.6 volts, 1.5–3 times the voltage of alternatives.
• Growing development of thin-film lithium battery: Micro-electromechanical systems (MEMS) and smart wearables have developed rapidly in recent years, necessitating the urgent need for suitable power sources with high energy density and long cycling lives. Integrated circuits, smart security cards, and other intelligent systems with micron or nanoscale structures require power supplies that are thin, light, long-lasting, safe, and have a high energy density. As a result, research on thin-film and tiny lithium-ion batteries (LIBs) have gained significant traction. Lithium cobalt oxide (LCO) is one of the modern cathode materials with a high volumetric capacity and working potential, and a volumetric change that is small enough to prevent film cracking during cycling. Furthermore, without the need for conductive additives, the LCO cathode's strong conductivity can meet the electron transport property.
• Increasing investments in research & development activities:  Major players are investing highly in R&D to develop new lithium cobalt oxide batteries such as lithium-ion batteries that are more efficient and have a longer lifespan.  For instance, in November 2023, more than USD 1 billion was invested by E-One Moli to grow its British Columbian battery production and research and development center. The E-One Moli plant will grow to be Canada's biggest producer of high-performance lithium-ion battery cells for use in environmentally friendly transportation. Once complete, the plant will provide the newest generation of high-performance lithium-ion battery cells for use in aircraft, consumer electronics, medical, and high-performance automobiles.

Challenges

• Volatile prices of cobalt: Trade laws, supply-demand imbalances, and geopolitical concerns all contribute to fluctuations in cobalt prices. Cobalt is a key component in lithium cobalt oxide batteries. Battery manufacturers and consumers face challenges as a result of this volatility, which has an impact on pricing stability and production costs.
• Environmental and ethical concerns: The cobalt supply chain must take into account environmental and ethical challenges, such as labor violations, violations of human rights, and environmental degradation in cobalt mining locations. To solve these issues, transparent supply chains, environmentally friendly sourcing practices, and advocacy efforts for moral cobalt mining practices are required. If cobalt price volatility and supply chain vulnerabilities are not addressed along with ethical and environmental concerns, the lithium cobalt oxide market's viability and growth may be at risk.