EV Battery Market Report 2025: Growth Projections and Opportunities Through 2035

The “EV Battery Market by Battery Type (Li-Ion, NiMH, SSB), Vehicle Type (PC, Vans/Light Truck, MHCV, Bus & OHV), Propulsion, Battery Form, Material Type, Battery Capacity, Method, Li-Ion Battery Component, and Region – Global Forecast to 2035” report has been included in ResearchAndMarkets.com’s offerings.

The global EV Battery market is anticipated to grow from USD 91.93 billion in 2024 to USD 251.33 billion by 2035, reflecting a compound annual growth rate (CAGR) of 9.6% during the period. This rapid growth is driven by the increasing adoption of electric vehicles, advancements in battery technology, and supportive government policies. The rising demand for longer-range and faster-charging batteries has led to innovations such as Honda’s plan to produce solid-state batteries that can provide up to 620 miles on a single charge by 2024. Additionally, partnerships and investments are facilitating expansion, as seen in Stellantis and CATL’s USD 4.2 billion venture to establish a lithium iron phosphate battery plant in Spain, announced in December 2024. With original equipment manufacturers (OEMs) rolling out new EV models and battery manufacturers ramping up production, the EV battery market is set for substantial growth.

Solid-state batteries are expected to experience significant growth in the EV battery market during the forecast period. These batteries have the potential to transform energy density, safety, and charging efficiency by replacing the liquid electrolyte in conventional lithium-ion batteries with a solid electrolyte. This change enhances thermal stability, reduces fire risks, and extends lifespan. Their higher energy density can greatly increase EV range and enable faster charging, making them crucial for boosting EV adoption. Recent developments highlight this momentum. For example, in December 2024, Honda revealed plans for solid-state batteries capable of delivering up to 620 miles (1,000 kilometers) on a single charge, more than double the typical range of many current electric vehicles. Similarly, in September 2024, Factorial partnered with Mercedes-Benz to develop the Solstice battery, an all-solid-state battery featuring a novel dry cathode design, promising an energy density of up to 450 Wh/kg and promoting more efficient and sustainable production processes. As automotive and battery companies intensify their research and development efforts, and governments incentivize advancements in battery technology, solid-state batteries are positioned to significantly impact the future of the EV market by addressing challenges such as range anxiety, safety concerns, and charging infrastructure limitations.

Passenger cars are expected to capture the largest share of the EV battery market during the forecast period. This dominance is driven by soaring consumer demand, supportive government policies, and the growing availability of various EV models. Governments worldwide are enforcing stringent vehicle emission regulations and offering subsidies to encourage EV adoption, which in turn boosts passenger car sales. Furthermore, advancements in EV battery technology—such as improved energy density, faster charging capabilities, and reduced costs—are making electric passenger cars more accessible to the broader market. Major automotive OEMs are preparing for this transition, with several new passenger car EV models set to launch in the coming years. For instance, Renault’s highly anticipated Renault 5 E-Tech is slated for a 2026 launch, featuring advanced lithium-ion batteries from AESC. Likewise, Mercedes-Benz plans to introduce the EQA 300 4MATIC in 2025, equipped with a high-performance NMC battery from SK ON, a subsidiary of SK Innovation. These developments underscore the increasing demand for advanced EV batteries, driving innovation and production growth in the battery sector. Advances in battery chemistry, including the transition from LFP to NMC and NCA, are enhancing energy density and driving ranges, further propelling market expansion. Collaborations between OEMs and battery manufacturers are accelerating the development of high-performance batteries. For instance, in November 2024, LG Energy Solution announced a five-year agreement to supply 4695 cylindrical lithium-ion batteries for Rivian’s R2.

Investments in new technologies, such as solid-state batteries and silicon anode chemistries, along with scaling production through gigafactories, are further enhancing market growth. These trends illustrate the synergy between OEMs and battery manufacturers, positioning the passenger car segment as the foremost driver of the EV battery market and advancing the global transition to sustainable transportation.

Europe is set to see substantial growth in the EV battery market during the forecast period, propelled by stringent emission reduction targets, rising EV demand, and increased investments in battery infrastructure. The EU’s law, enacted in March 2023, mandates zero CO₂ emissions for all new cars sold by 2035, alongside a 55% reduction in CO₂ emissions by 2030 compared to 2021 levels. These ambitious targets are accelerating the decarbonization of new car fleets, significantly boosting EV adoption and, consequently, the EV battery market. While the EU has pledged a legal pathway for e-fuels vehicles beyond 2035, the focus remains on zero-emission solutions for cars and vans. European OEMs are heavily investing in EV and battery developments. For example, in December 2024, Stellantis NV and CATL announced a joint venture worth approximately USD 4.3 billion to construct a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. Similarly, BMW Group plans to open five battery factories near major auto manufacturing hubs, including facilities in Lower Bavaria and Debrecen, Hungary, to support its Neue Klasse electric vehicles.

Key battery manufacturers are also expanding their operations in Europe. Major players like Northvolt, LG Energy Solution, and CATL are establishing battery gigafactories to meet the rising demand. These developments underscore Europe’s commitment to becoming a global leader in EV batteries, bolstered by progressive policies, a robust automotive ecosystem, and increasing investments from OEMs and suppliers.

Research Coverage

The report encompasses the EV battery market in terms of battery capacity (< 50 kWh, 51-110 kWh, 111-201 kWh, 201-300 kWh, > 301 kWh), battery form (Prismatic, Pouch, Cylindrical), battery type (Lithium-ion, Nickel-metal Hydride, Solid-state, Sodium-ion), lithium-ion battery components (Negative Electrode, Positive Electrode, Electrolyte, Separator), material types (Cobalt, Lithium, Natural Graphite, Manganese, Iron, Phosphate, Nickel), methods (Wire Bonding, Laser Bonding, Ultrasonic Metal Welding), propulsion types (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle, Hybrid Electric Vehicle), vehicle types (Passenger Cars, Vans/Light Trucks, Medium & Heavy Trucks, Buses, Off-highway Vehicles), and regions. The report also covers the competitive landscape and provides company profiles of significant players in the EV battery market.

It includes an in-depth competitive analysis of key market players, their company profiles, key observations related to product and business offerings, recent developments, and market strategies. The EV battery market is dominated by major players such as Contemporary Amperex Technology Co., Limited, BYD Company Ltd., LG Energy Solution Ltd., CALB, and SK Innovation Co., Ltd., among others. These companies are expanding their portfolios to enhance their positions in the EV battery market.

Key Attributes

• No. of Pages: 371
• Forecast Period: 2024-2035
• Estimated Market Value (USD) in 2024: $91.93 Billion
• Forecasted Market Value (USD) by 2035: $251.33 Billion
• Compound Annual Growth Rate: 9.6%

Market Dynamics

Drivers:
– Rise in Government Incentives and OEM Investments
– Advancements in Battery Technologies
– Government Strategies to Promote Adoption of EVs
– Declining Prices of EV Batteries

Restraints:
– Geopolitical Instability and Supply Chain Disruptions
– Shortage of Charging Infrastructure in Emerging Economies
– Emergence of Alternative Fuel Options

Opportunities:
– Growth of Battery as a Service (BaaS) in the EV Battery Market
– Development of Innovative Solid-State Batteries
– Advancements in Energy Storage Systems (ESS)

Challenges:
– High Initial Cost
– Shortage of Lithium
– Safety Concerns
– Cost Disparity Between Electric and Conventional Vehicles

Case Study Analysis

• BYD developed the Blade Battery to prioritize safety and durability without compromising performance.
• Wipro Pari utilized Cognex’s advanced machine vision system to address complexities in EV battery manufacturing.
• Northvolt adopted Autodesk’s integrated software solution to implement a digital factory approach connecting battery design and manufacturing.
• Maxwell Energy offered cutting-edge ultracapacitor technology to enhance energy recovery and power delivery.

Additional insights covered in the report include investment and funding scenarios, patent analysis, technology analysis, HS Code for Lithium Cells and Batteries (850650), regulatory landscapes, key conferences and events for 2025-2026, key stakeholders and buying criteria, OEM analysis, supplier analysis, trends and disruptions affecting customer business, rapid development of new energy vehicles (NEVs) driving growth in the EV battery market, analysis of lithium-ion battery pricing and costs, and the impact of AI on the EV battery market.

Companies Profiled in the Report

• Contemporary Amperex Technology Co. Limited
• BYD Company Ltd.
• LG Energy Solution
• CALB
• SK Innovation Co. Ltd.
• Panasonic Holdings Corporation
• Samsung SDI
• Gotion
• Sunwoda Electronic Co. Ltd.
• Farasis Energy (Ganzhou) Co. Ltd.
• Toshiba Corporation
• Mitsubishi Corporation
• Enersys
• Exide Industries Limited
• E-One Moli Energy Corp.
• Targray Technology International Inc.
• Altair Nanotechnologies Inc.
• Clarios
• Northvolt AB
• Leclanché SA
• Envision Group
• A123 Systems (Subsidiary of Wanxiang Group)
• GS Yuasa International Ltd.
• Automotive Energy Supply Corporation
• Rept Battero Energy Co Ltd.
• Automotive Cells Company
• Blueoval SK
• Cellforce Group GmbH
• Ultium Cells
• One Battery
• Sila Nanotechnologies Inc.
• Morrow Batteries

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