Electric Vehicle (EV) Batteries Market Report 2025

The electric vehicle (EV) batteries market size has grown exponentially in recent years. It will grow from $66.43 billion in 2024 to $87.78 billion in 2025 at a compound annual growth rate (CAGR) of 32.1%. The growth in the historic period can be attributed to reduced cost of ev batteries, emerging markets growth, a rise in domestic manufacturing and a rise in disposable income.

The electric vehicle (EV) batteries market size is expected to see exponential growth in the next few years. It will grow to $197.32 billion in 2029 at a compound annual growth rate (CAGR) of 22.4%. The growth in the forecast period can be attributed to increase in fuel prices, growing demand for electric vehicles, urbanization, and increasing investments by automotive oems. Major trends in the forecast period include vehicle to grid technology, adoption of lithium-ion batteries, partnerships and collaborations and increasing investments in electric vehicle (EV) batteries.

Advancements in electric vehicle (EV) batteries and related technologies are encouraging consumers to purchase EVs, thereby contributing to the growth of the EV battery market. Recent innovations, such as lithium-ion batteries, fast charging capabilities, and improved mileage, have made electric cars more appealing to passengers. For example, in January 2022, the Office of Energy Efficiency and Renewable Energy, a U.S. government agency, reported that while the maximum range for any electric vehicle (EV) in the 2021 model year was 405 miles, some models for the 2022 model year are already achieving ranges exceeding 500 miles. Additionally, technological advancements are helping to lower the prices of electric batteries. According to a Bloomberg report, the average price for lithium-ion batteries was $151 per kWh in 2022. Thus, improvements in electric batteries and associated technologies are enhancing vehicle mileage and attracting more customers, driving the growth of the electric vehicle battery market.

The increasing demand for automotive lithium-ion (Li-ion) batteries is expected to fuel the growth of electric vehicle (EV) batteries in the future. Automotive lithium-ion (Li-ion) batteries are rechargeable energy storage devices specifically designed for use in electric vehicles (EVs) and hybrid electric vehicles (HEVs). These batteries serve as the primary energy storage technology in EVs, powering the electric motor(s) and facilitating vehicle operation. For instance, in April 2023, the International Energy Agency, a France-based intergovernmental organization, reported that the demand for automotive lithium-ion (Li-ion) batteries surged by approximately 65% to reach 550 GWh in 2022, up from around 330 GWh in 2021. This increase was driven by a 55% rise in electric passenger car registrations. In China, demand for vehicle batteries grew by over 70%, with electric car sales increasing by 80%. The U.S. also experienced an 80% rise in battery demand, despite electric car sales rising by only 55%. Therefore, the growing demand for automotive lithium-ion (Li-ion) batteries is propelling the growth of the electric vehicle (EV) battery market.

Major companies in the electric vehicle (EV) battery market are developing technologically advanced products, such as lithium iron phosphate (LiFePO4) batteries, which offer superior safety, long cycle life, thermal stability, and high discharge rates. A lithium iron phosphate (LiFePO4) battery is a rechargeable lithium-ion battery recognized for its safety, thermal stability, long lifespan, and high power output, making it suitable for electric vehicles, renewable energy storage, and portable devices. For instance, in June 2024, Geely, a China-based automobile manufacturer, introduced the Aegis Short Blade Battery. This battery features an energy density of 192 Wh/kg and an impressive cycle life of up to 3,500 cycles, allowing it to power vehicles for approximately 1 million kilometers with minimal impact on range. With a service life of up to 50 years, it significantly enhances the longevity and residual value of used cars. The Aegis Short Blade Battery addresses the high internal resistance common in many long blade batteries by employing long, thin carbon nanotubes to create a highway for ion transmission, along with additives that improve film permeability for easier lithium ion movement between electrodes. As a result, the Aegis Short Blade Battery provides exceptional fast-charging capabilities, achieving 80 percent capacity in an average charging time of just 17 minutes and 4 seconds at a rate of 2.45 C, compared to the 26 minutes typically required for other long blade batteries with similar capacity, which charge at 1.61 C.

Major companies in the electric vehicle (EV) batteries market are strategically innovating products such as Astroinno to gain a competitive edge. Astroinno batteries, a type of lithium-manganese-iron-phosphate (LMFP) battery, boast high energy density and a long cycle life. In May 2023, Gotion High Tech Co., Ltd., a China-based battery manufacturing company, introduced Astroinno, an EV battery with an impressive 1000 km range on a single charge. This battery sets a precedent for developing nickel-cobalt-manganese (NCM)-free batteries, featuring internal insulation materials capable of withstanding temperatures of up to 1200°C and enduring 1500 fast charging cycles in just 18 minutes.

In August 2022, Nikola Corporation, a US-based manufacturer of heavy-duty commercial battery-electric vehicles, fuel-cell electric vehicles, and energy solutions, made a $144 million acquisition of Romeo Power. This strategic move by Nikola aims to achieve substantial operational improvements and cost savings in battery pack production. The integration of Romeo Power's battery and battery management system (BMS) engineering expertise is expected to accelerate product development and enhance performance for Nikola customers. Romeo Power is a US-based battery manufacturer specializing in EV vehicles.

Major companies operating in the electric vehicle (EV) batteries market include LG Energy Solution Ltd, Samsung SDI Co. Ltd, SK Innovation Co. Ltd, Panasonic Corporation, Contemporary Amperex Technology Co. Ltd, Clarios, BYD Co. Ltd, Narada Power Source Co. Ltd, GS Yuasa Corporation, Tianneng Power International Ltd, SVOLT Energy Technology Co, Ltd, EVTronic, Britishvolt, Aceleron, Williams Advanced Engineering, Zenobe, Northvolt, Verkor, Italvolt, Fortum, ElecSys, Volkswagen, BMW, Groupe Renault, Cobham, Varta, SAFT, AKOM, InoBat Auto, Ligier Group, Polaris Industries, Skoda Auto, Proterra, BMZ Inc, Microvast, Romeo Power, Quantumscape Corporation, Horwin, Byvin, HDK Electric Vehicles, Ingersoll Rand Inc, Shandong Shifeng (Group), Speedway Electric, Eleksa EV, Melex Electrovehicles, GridCars, Mazibuko Motor Company, El Nasr Automotive Manufacturing Company, Jet Motors.

Asia-Pacific was the largest region in the electric vehicle batteries market in 2024. Western Europe was the second-largest region in the global electric vehicle batteries market share. The regions covered in the electric vehicle (ev) batteries market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle (ev) batteries market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Electric vehicle batteries refer to rechargeable batteries utilized to power electronic vehicles, aligning with the clean energy initiative by eliminating the emission of harmful gases detrimental to the environment.

The primary types of batteries employed in electric vehicles include lithium-ion, lead-acid, nickel-metal hydride, sodium-ion, and others. Lithium-ion batteries, chosen for their enhanced safety and stability during movement compared to liquid li-ion batteries, are prominently utilized in electric vehicles. These batteries cater to two vehicle categories, namely passenger and commercial vehicles, and are available in two propulsion types, battery electric vehicles and plug-in hybrid electric vehicles.

The electric vehicle batteries market research report is one of a series of new reports that provides electric vehicle batteries market statistics, including electric vehicle batteries industry global market size, regional shares, competitors with an electric vehicle batteries market share, detailed electric vehicle batteries market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle batteries industry. These electric vehicle batteries market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric vehicle batteries market consists of sales of lithium-ion batteries, lead-acid batteries, nickel-metal hydride batteries, sodium-ion batteries, and other electric vehicle (EV) batteries. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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