Lithium Metal Battery Market Projected to Surpass $13 Billion by 2035

Lithium Metal Battery Market Expected to Surpass US$13 Billion by 2035
Posted by Jennifer Read | Feb 20, 2025 | Analysis, Automotive, Design, Energy

By Daniel Parr, Technology Analyst at IDTechEx

Lithium metal batteries present a groundbreaking opportunity for advancing modern battery technology. Traditional lithium-ion batteries use a graphite anode, which limits their maximum energy density. This energy density constraint significantly impacts several critical applications, particularly electric vehicles, where a limited capacity restricts vehicle range. Current electric vehicles can achieve maximum ranges of approximately 400 km, but lithium metal batteries could enhance this range by 50% or more.

According to IDTechEx’s latest report, “Lithium Metal Batteries 2025-2035: Technology, Players, and Forecasts,” the lithium metal battery sector is projected to exceed US$13 billion by 2035, with electric vehicle deployments accounting for about 78% of the market.

Lithium metal anodes provide the highest gravimetric energy density available among anodes used in lithium-ion chemistry, making them a primary focus for commercialization efforts. However, past attempts to bring these products to market have faced challenges due to the inherent instability of lithium metal anode batteries. The primary failure mechanism is the formation of lithium dendrites. During the charging and discharging processes, lithium metal is plated and stripped from the anode current collector. Inconsistent plating can lead to the growth of tendril-like structures on the surface, known as lithium dendrites. These dendrites can breach the solid electrolyte interface layer (SEI) and react with the electrolyte, resulting in a loss of active material. Over time, this deterioration limits battery lifespan and leads to premature cell failure. If dendrites extend to the cathode layer, short circuits can occur, rendering the battery inoperable.

This challenge has hindered the rapid development of lithium metal battery technology. Several strategies have been proposed to enhance battery longevity and performance. For instance, separators can be employed to prevent dendrites from contacting the electrolyte and to manage ion deposition and transfer through specialized coatings. Alternatively, solid-state electrolytes can serve a similar function, although they may restrict interface conductivity. Additionally, the processes of lithium metal plating and stripping can be controlled by adjusting temperature and pressure, though integrating these conditions into practical applications can be complex. While slow charging and fast discharging can be beneficial for lithium metal battery performance, this is often at odds with consumer demand for rapid charging in the electric vehicle market.

Progress in addressing lifetime concerns is being made by combining these approaches, and commercialization efforts are underway. There are three primary lithium metal battery designs of interest: solid-state, liquid electrolyte, and lithium-sulfur. Solid-state batteries offer the significant advantage of enabling lithium metal anodes. Consequently, many developers in this space are shifting towards lithium metal, with some already launching successful products. Meanwhile, liquid electrolyte lithium metal batteries have faced slower development due to the challenges posed by lithium dendrites. However, once these hurdles are overcome, they are expected to deliver higher specific energy and may benefit from existing battery production infrastructures, potentially reducing costs.

Lithium-sulfur batteries, which utilize a sulfur cathode instead of conventional technologies like NMC and LFP, represent another area of interest. They promise higher gravimetric energy density but face an additional challenge known as the polysulfide shuttle, leading to slower development and potentially limited lifespan compared to other lithium metal technologies.

The high energy density of lithium metal batteries opens up numerous exciting applications, particularly in aviation, maritime, and defense sectors, where gravimetric energy density is crucial. However, the potential deployment size in these markets is relatively modest—for instance, the unmanned aerial vehicle (UAV) market is expected to remain below 1 GWh over the next decade. Satellites could also be a viable application, although market penetration is primarily dependent on SpaceX, which accounts for over 70% of satellite launches each year. Consequently, electric vehicles are anticipated to be the largest driver of demand, prompting most lithium metal battery developers to focus on this market.

IDTechEx predicts significant adoption of lithium metal batteries in the next decade, with mass production of solid-state lithium metal expected by 2027/2028, liquid electrolyte lithium metal by 2029/2030, and lithium-sulfur by 2031/2032. Throughout this period, solid-state lithium metal is forecasted to dominate the market, comprising over 70% of the total market share by 2035.

For more information on this IDTechEx report, including downloadable sample pages, please visit www.IDTechEx.com/LMB.