Lithium-Ion Battery Market - Forecasts from 2025 to 2030

The lithium-ion battery market is expected to grow at a CAGR of 9.43%, reaching a market size of US$119.168 billion in 2030 from US$75.991 billion in 2025.

The market for lithium-ion batteries is driven by the growing demand for electric vehicles, solar-powered rooftops, electronic devices, and the expansion of other energy-storing devices. The demand for electric vehicles would significantly increase the demand for Li-Ion Batteries.

These batteries are important for electronic devices and electric mobility and are gaining traction in grid-scale storage. Growth in sales ofelectric vehiclesand energy storage increases the demand for lithium-ion batteries. The regions of Asia-Pacific and Europe will have sufficient manufacturing capacity to meet demand.

The solar rooftop capacity expansion has created a significant demand for lithium-ion batteries to store excess solar energy generated for use during nighttime. This maximizes the use of solar power and provides homeowners with energy independence. In 2023, solar PV accounted for three-quarters of renewable capacity additions worldwide According to the International Energy Agency, Solar PV capacity additions would be 421.7 GW in 2025, 459.2 GW in 2026, and 493.9 GW in 2027.

With the growing demand for Lithium-Ion, companies are investing and making significant moves to meet it. For instance, in September 2024, Panasonic Energy Co., Ltd. announced preparations for mass production of the 4,680 cylindrical automotive lithium-ion batteries. The company revamped its Wakayama factory in Western Japan, which would serve as the main factory for the new cells.

Lithium-ion battery Market Drivers

Rising demand for electric vehicles is contributing to the lithium-ion battery market expansion

The electric vehicle sales are driven in major regions of the United States, China, Europe, and India. The buying of electric vehicles (EVs) is driving the demand for EV batteries. According to the IEA (International Energy Agency), the demand for EV batteries will be 750 GWh in 2023, which is 40% up from 2022. This rising number of EV batteries has increased demand for critical rare earth minerals like lithium. The demand for lithium was 140 kt in 2023.

The observed trend in the production of lithium-ion batteries is that they are close to the production centre of EVs. The relative production of EVs in Europe was 2.5 million, and their EV battery production reached 110 GWh. Government policies in various countries promote the production of electric vehicles and lithium-ion battery manufacturing facilities for both countries. China registered a battery production capacity for electric vehicles of 417.97GW in 2023. With government backing in the United States, the manufacturing capacity would bypass Europe in upcoming years.

Lithium-ion Battery Market Geographical Outlook

Europe is witnessing exponential growth during the forecast period.

Germany's lithium-ion battery market will witness substantial growth owing to several factors, such as the country's commitment to technological advancement and sustainability.

The market growth within the European region reflects its broader trend where the demand for these lithium-ion batteries is increasing due to their efficient role in electric mobility and energy storage systems.

Electric cars (EVs) so far have also been one of the main engines of this development. The demand for lithium-ion batteries has increased as Germany has been switching to more environment-friendly forms of transport. According to the report published by the OECD Environmental Performance Review, Germany 2023, between 2020 and 2021, Germany witnessed a double growth in its EV sales, reaching 24% of newly purchased vehicles by the end of 2021. Similarly, according to the study published by Clean Technica, the month of August 2024 saw EVs take a 20.6% share in Germany, which is an increase from a 19.3% share in EVs in February 2024.

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Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
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• Revenue Growth and Forecast Assessment of segments and regions including countries
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The lithium-ion battery market is segmented and analyzed as follows:

By Power Capacity

• 0 to 3,000 mAh
• 3,000 mAh to 10,000 mAh
• 10,000 mAh to 60,000 mAh
• More than 60,000 mAh

By End-User Industry

• Automotive
• Consumer Electronics
• Energy Storage Systems
• Aerospace And Defense

By Geography

• North America
• South America
• Europe
• Middle East and Africa
• Asia-Pacific