Automotive Secondary Battery Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Automotive Secondary Battery Market is projected to expand from a valuation of USD 62.57 Billion in 2025 to USD 111.51 Billion by 2031, reflecting a compound annual growth rate of 10.11%. This sector encompasses the engineering and production of rechargeable energy storage systems, primarily lithium-ion and nickel-metal hydride units, used for propulsion and auxiliary power in electric and hybrid vehicles. Growth is fundamentally driven by the implementation of strict government emission regulations, the accelerating shift toward fleet electrification, and significant advancements in battery energy density. Highlighting the sector's robust momentum, the China Automotive Battery Innovation Alliance reported that cumulative power battery installations reached 548.4 GWh in 2024.

Despite this positive outlook, the market faces a substantial obstacle due to the instability of critical raw material supply chains. The industry depends heavily on minerals such as lithium, cobalt, and nickel, which are often subject to volatile pricing and geopolitical trade risks. These supply vulnerabilities create potential bottlenecks in manufacturing scalability and threaten to delay the cost reductions necessary to meet the increasing global demand for affordable electric mobility.

Market Drivers

The accelerating global adoption of electric and hybrid vehicles acts as the primary catalyst for the Global Automotive Secondary Battery Market. As nations strive to meet decarbonization targets by transitioning away from internal combustion engines, the demand for high-capacity lithium-ion units has risen dramatically, necessitating a proportional increase in production output to equip new automotive fleets. This trend is supported by strong sales data; according to the International Energy Agency's "Global EV Outlook 2024" published in April 2024, global electric car sales reached nearly 14 million units in 2023, claiming 18% of the total automotive market. Furthermore, improving cost dynamics are enhancing vehicle affordability, with Goldman Sachs Research projecting in October 2024 that global average battery prices would fall to $111 per kilowatt-hour by the end of the year, thereby lowering entry barriers and stimulating widespread procurement.

Simultaneously, rising investments in battery gigafactories and production infrastructure are transforming the supply landscape to meet this surging demand. Governments and manufacturers are aggressively expanding capabilities to localize supply chains and reduce dependence on volatile import markets, ensuring production aligns with vehicle sales trajectories. A key example of this expansion is the U.S. Department of Energy's announcement in September 2024 regarding the "Investing in America" agenda, which awarded over $3 billion in grants to 25 projects across 14 states to strengthen domestic battery manufacturing and recycling. These investments allow the market to scale rapidly from pilot lines to multi-gigawatt-hour facilities serving major automotive OEMs, ensuring the industry can sustain the throughput required for ongoing transport electrification.

Market Challenges

The instability of critical raw material supply chains presents a formidable barrier to the growth of the Global Automotive Secondary Battery Market. Manufacturers rely heavily on minerals like lithium, cobalt, and nickel, which are prone to price volatility and geopolitical trade risks, creating severe bottlenecks in manufacturing scalability as producers struggle to forecast long-term costs or secure consistent inputs. When raw material prices fluctuate unexpectedly, battery makers find it difficult to maintain the stable pricing structures that automotive OEMs need to effectively plan their fleet electrification strategies, resulting in financial uncertainty that dampens investment.

This structural vulnerability is further aggravated by the intense geographic concentration of the upstream value chain. As reported by the European Automobile Manufacturers’ Association in 2025, the European Union held only a 7% share of global battery production, whereas China and the United States controlled 87% of upstream supply chain capacity. This disparity emphasizes the market's exposure to trade tensions and regional supply shocks, where high dependence on limited sources means logistical disruptions can immediately halt manufacturing output. Ultimately, these supply chain rigidities threaten to postpone the cost reductions essential for making electric vehicles affordable, directly hindering the broader expansion of the secondary battery sector.

Market Trends

The growing market share of Lithium Iron Phosphate (LFP) signifies a fundamental shift in battery chemistry preferences, driven by the industry's strategic need to reduce reliance on expensive and volatile cobalt and nickel supplies. This trend represents a technological migration where automotive manufacturers are prioritizing thermal stability and supply chain security over maximum energy density for standard-range fleets. This structural change is demonstrated by the rapid displacement of ternary chemistries in key global markets; according to the International Energy Agency's "Global EV Outlook 2025" released in May 2025, LFP batteries captured nearly 50% of the global electric vehicle battery market share in 2024, highlighting their dominance in the mass-market segment.

Concurrently, the adoption of Sodium-Ion chemistries for budget vehicles is emerging as a critical trend to circumvent lithium scarcity and further lower entry barriers for electrification. Utilizing abundant sodium reserves, this technology offers a cost-effective alternative for entry-level passenger cars where affordability and cold-weather performance are more critical than ultra-high energy density. The commercial viability of this chemistry has accelerated rapidly from research to deployment; for instance, in an April 2025 press statement regarding its "Naxtra" platform, CATL revealed that its new mass-produced sodium-ion cells achieve an energy density of 175 watt-hours per kilogram, marking a significant breakthrough in performance viability for commercial electric vehicles.

Key Players Profiled in the Automotive Secondary Battery Market

• Contemporary Amperex Technology Co. Limited
• BYD Co. Ltd.
• Tesla, Inc.
• Panasonic Corporation
• Samsung SDI Co. Ltd.
• LG Chem Ltd.
• GS Yuasa Corporation
• Duracell Inc.
• EnerSys
• Saft Groupe SA

Report Scope

In this report, the Global Automotive Secondary Battery Market has been segmented into the following categories:

Automotive Secondary Battery Market, by Technology:

• Lead-acid Batteries
• Lithium-ion Batteries
• Others

Automotive Secondary Battery Market, by Type:

• HEV
• PHEV
• EV

Automotive Secondary Battery Market, by Region:

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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Secondary Battery Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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