Benchmark launches satellite analysis to track the global cathode market

Benchmarkis pleased to announce it has begun monitoring and verifying global cathode construction progress using satellite imagery as part of theBenchmark Verifiedservice.

Building upon thesuccess of such analysis in theBenchmark Gigafactory Market Assessment,theBenchmark Verifiedservice is now monitoring over 300 cathode facilities globally.

“The launch of Benchmark Verified for Cathode has enabled us to take another step forward in building the most comprehensive and accurate picture of manufacturing assets in the global battery supply chain,” said Aakanksha Raje, cathode analyst at Benchmark. “The work we have undertaken has already yielded results in verifying the status of sites, particularly those in more opaque regions such as China.”

As new entrants gear up to meet growing demand for locally sourced cathode material in Western markets and Chinese producers continue capacity expansions,Benchmark’ssatellite imagery will provide subscribers with granular, evidence-based insight into the progress of developments at individual facilities across the globe.

Benchmark’sanalysis reveals the number of active cathode facilities globally is set to increase 37% by 2030, taking global cathode capacity to over 22,000,000 tonnes per year by the end of the decade. TheBenchmark Verifiedservice has confirmed 3,000,000 tonnes per year of this additional capacity to currently be in the construction phase.

However, a downcycle for critical mineral prices is adding considerable risk for the battery industry. In this context,Benchmarkanticipates a period of consolidation to take place in the cathode market this year and next, with geospatial analysis providing the tools necessary for theBenchmarkteam to monitor how market players are weathering the storm.

In addition, theBenchmark Verifiedservice will provide subscribers with critical insights into regional deviations and trends; exemplified byBenchmark’s similar analysis on diverging gigafactory construction timelines in the US and China.

Today, 85% of the current global cathode capacity is located in China. The US is planning an enormous 300% increase in its number of facilities through to 2030, while Europe’s cathode capacity is set to reach close to 1,000,000 tonnes per year by the end of the decade – 50% of which is confirmed to be in construction through analysis of satellite imagery.

Benchmarkwill continue to monitor each site at regular intervals to confirm activity, particularly as overcapacity in some markets may lead to companies to halt construction, expansion, or production; abandoning projects altogether if headwinds persist.

Benchmark Verified

Benchmark’snew remote sensing service will be included within its Cathode Assessment.

This service will provide accurate and transparent insight into cathode projects, backed by satellite imagery.

Benchmarkhas combined its detailed knowledge of these existing and planned facilities globally with advanced capabilities in the analysis of satellite imagery using geographic information systems (GIS).

Initially this service will verify the status of active cathode facilities and monitor the progress of individual projects construction and production timelines. Through the development of proprietary site evaluation methodologies from satellite imagery,Benchmarkwill assign each individual cathode production site into one of two initial categories:

Benchmark uses a number of indicators to gauge activity levels at each site or the stage of construction each facility is undergoing

These indicators include but are not limited to:

Where cathode production sites have been verified this will be indicated in research via two main categories:

Where possibleBenchmarkuses its extensive field visits to further verify its findings from satellite imagery.

As part of our data collection processBenchmark Mineralsalso conducts regular reviews of our sources and the data received to analyse the information published against external metrics and verify accuracy.

Benchmark Verified for Cathode is part of the coverage provided in Benchmark’s Cathode Price Assessment.

The satellite imagery allows our experts to independently assess capacity developments in China – Benchmark covers over 90% of global cathode supply.

To see more details and speak to our experts, please provide your details here and our team will contact you shortly.