Battery material selection has become one of the biggest cost and performance drivers in today’s power banks and consumer electronics. In 2025, global raw material prices — especially cobalt, nickel, and manganese — have experienced significant volatility, reshaping the competitive landscape for lithium-ion batteries.
This article compares the three most commonly used cathode chemistries in consumer portable batteries:
• LCO (Lithium Cobalt Oxide)
• NCM/NCA (Ternary materials)
• LMO (Lithium Manganese Oxide)
We break down price trends, performance, safety, supply chain risks, and suitability for power banks.
1. Overview of the Three Key Cathode Materials
1. LCO — Lithium Cobalt Oxide
- High energy density
- Premium smartphones and tablets
- Cost heavily linked to cobalt market
- Stable voltage output
- Shorter lifespan than NCM
2. NCM/NCA — Ternary Materials
- Nickel, cobalt, manganese/aluminum blends
- Used in EVs, drones, high-performance devices
- High energy density + better cycle life than LCO
- Expensive due to nickel and cobalt content
3. LMO — Lithium Manganese Oxide
- Lower cost
- Good thermal stability
- Shorter cycle life
- Common in budget consumer electronics, Amazon brands
- Often blended with NCM to improve performance
2. Raw Material Price Trends 2020–2025
Your uploaded charts clearly show:
- LCO (blue line) prices increased by ~2/3 compared to LMO.
- NCM811 (orange line) peaked around mid-2022 due to nickel surges.
- LMO (yellow line) remains the lowest-cost cathode material.
The trend highlights a widening cost gap between premium (LCO/NCM) and mass-market (LMO) chemistries.
3. Why Cobalt Prices Are Rising in 2025 (Global Market Update)
The cobalt market has entered a “rigid shortage” stage.
Here are the five major reasons:
1. DRC Export Quotas (Biggest Impact)
The Democratic Republic of Congo (DRC) — supplying over 70% of global cobalt — implemented strict export quotas beginning October 16, 2025.
- Q4 2025 export limited to 18,125 tons
- October cap at just 3,625 tons
- 2026–2027 export quota reduced 56%
- Global cobalt shortage estimated 122,000 tons in 2025
This alone triggered a price surge.
2. Slow Recovery of Alternative Supply
- DRC small mines running <60% capacity
- Logistics delays
- Indonesia hydrometallurgical projects face technical issues
Alternative supply cannot fill the gap.
3. Demand Growth from EVs, Drones, and eVTOL
- High-nickel ternary EV batteries use 30% more cobalt
- EV sales up 28% YoY
- Ternary EV battery share up to 41%
- Consumer electronics cobalt demand up 15%
4. Record-Low Inventory Levels
China cobalt inventory dropped to 2,800 tons
→ enough for 10 days of market demand.
Low inventories = higher price volatility.
5. Capital Inflow & Market Speculation
Funds are heavily buying cobalt futures.
Traders are pre-stocking ahead of DRC policy.
This amplifies bullish pressure.
4. Performance Comparison: LCO vs NCM vs LMO
| Feature | LCO | NCM/NCA | LMO |
|---|---|---|---|
| Energy Density | ★★★★★ (High) | ★★★★☆ | ★★☆☆☆ |
| Cycle Life | ★★★☆☆ | ★★★★☆ | ★★☆☆☆ |
| Safety | ★★★☆☆ | ★★★☆☆ | ★★★★☆ (High) |
| Cost | Very High | High | Low |
| Stability | Medium | Medium | Excellent |
| Typical Use | Mobile phones, tablets | EVs, drones, some power banks | Budget electronics, mass-market power banks |
LCO = performance king
NCM = balanced premium
LMO = cost advantage
5. Cost Comparison in 2025
Raw material cost overview (from your chart):
- Cobalt (Co): 33,000 USD/ton
- Nickel (Ni): 18,000 USD/ton
- Manganese (Mn): 2,000 USD/ton
- Iron (Fe): 100 USD/ton
Cathode cost per ton:
- NCA: 55,000 USD/ton
- NCM811: 50,000 USD/ton
- LCO: ~40,000 USD/ton
- LMO: 10,000 USD/ton
- LFP: 8,000 USD/ton
LMO and LFP are far cheaper because manganese and iron are abundant and inexpensive.
6. Application Scenarios
LCO — Premium Consumer Electronics
- Smartphones
- Tablets
- High-end cameras
Chosen for high energy density and compact size.
NCM/NCA — EVs, Drones, High-Power Devices
- Electric vehicles
- eVTOL aircraft
- Drones
- Fast-charging power banks
High performance but expensive.
LMO — Power Banks for Amazon & Retail
Most cost-driven power bank brands use LMO or LMO+NCM blends because:
- Lower BOM cost
- Stable supply
- Good enough performance for 10,000–30,000mAh products
7. Safety & Thermal Performance
LMO is the most thermally stable.
NCM and LCO require stricter BMS protections.
The new China 2025 CCC power bank standard strengthens thermal protection requirements due to these material risks.
8. Environmental & Policy Trends
Global battery materials are shifting:
- EV industry moving to LFP & LMFP
- Consumer electronics exploring semi-solid-state cells
- Recycling regulation tightening
- Cobalt supply expected to remain volatile
This will influence next-gen power banks.
9. Which Cathode Material Should You Choose for Power Banks?
Best Overall for Cost-Performance:
LMO or LMO+NCM hybrid
Best for High-End Flagship Models:
LCO (smartphones) or NCM (high-power PD)
Best for Rugged Outdoor Banks:
LMO (high stability)
Best for Fast-Charging & High Output:
High-nickel NCM
ReachInno can help match the right cell based on capacity, PD wattage, budget, and target market.
10. Conclusion
The difference between LCO, NCM, and LMO goes far beyond chemistry — it affects cost, supply-chain risk, pricing, performance, safety, and product positioning. With cobalt shortages intensifying and ternary materials becoming more expensive, 2025 will accelerate the shift toward LMO, LFP, and blended chemistries for power banks.
Choosing the right material ensures:
• stable pricing
• better safety
• longer cycle life
• compliance with CCC 2025
• competitive retail pricing
ReachInno can support your battery material selection, cell sourcing, and complete power bank development.
Contact us: charleen@reachinno.com
Download our full 2025 Battery Material Guide
