Electric Vehicle Battery Market Forecasts to 2030 - Global Analysis By Battery Type, Battery Capacity, Battery Form, Material Type, Propulsion Type, Battery Component, Vehicle Class, End User and By Geography

According to Stratistics MRC, the Global Electric Vehicle Battery Market is accounted for $154.3 billion in 2024 and is expected to reach $383.8 billion by 2030 growing at a CAGR of 16.4% during the forecast period. An Electric Vehicle (EV) Battery is a rechargeable battery pack used to power the electric motor of an EV. These batteries store electrical energy and supply it to the motor, enabling the vehicle to operate without internal combustion. EV batteries are crucial for vehicle range, performance, and efficiency, and are central to the growing adoption of electric mobility solutions.

According to the International Energy Agency (IEA), global electric car sales exceeded 10 million in 2022, up 55% relative to 2021. This surge in sales has driven a significant increase in battery demand, with automotive lithium-ion battery demand rising by about 65% to 550 GWh in 2022 from about 330 GWh in 2021.

Market Dynamics:

Driver:

Expansion of charging infrastructure

The expansion of charging infrastructure significantly drives the electric vehicle battery market. As governments and private entities invest in building more accessible and widespread charging stations, the convenience and practicality of owning electric vehicles (EVs) increase. This infrastructure development reduces range anxiety among potential EV buyers, making electric vehicles a more attractive option and directly boosting the demand for EV batteries.

Restraint:

Limited range

The limited range of electric vehicles remains a major restraint for the electric vehicle battery market. Despite advancements in battery technology, concerns about the driving range of EVs compared to traditional gasoline vehicles deter some consumers from making the switch. This limitation impacts the market's growth potential, as it restricts the broader adoption of electric vehicles, especially in regions with insufficient charging infrastructure.

Opportunity:

Advancements in battery recycling

Advancements in battery recycling present a significant opportunity for the electric vehicle battery market. As the demand for EVs grows, so does the need for sustainable and efficient ways to recycle used batteries. Innovations in recycling technologies not only address environmental concerns but also help in reducing the dependency on raw materials by recovering valuable metals. This can lead to cost reductions and a more sustainable supply chain for EV batteries.

Threat:

Raw material scarcity

The scarcity of raw materials required for EV batteries, such as lithium, cobalt, and nickel, poses a threat to the electric vehicle battery market. The increasing demand for these materials, coupled with geopolitical tensions and limited geographical availability, can lead to supply chain disruptions and price volatility. This scenario could increase production costs and impact the affordability of electric vehicles, thereby restraining market growth.

Covid-19 Impact:

The Covid-19 pandemic initially disrupted the electric vehicle battery market due to supply chain interruptions and a temporary decline in EV sales. However, the market quickly demonstrated resilience as the demand for electric vehicles surged post-pandemic, driven by an increased focus on sustainability and supportive government policies. The pandemic accelerated the shift towards electric mobility, highlighting the importance of robust and localized supply chains for battery production.

The battery electric vehicles (BEV) segment is expected to be the largest during the forecast period

The battery electric vehicles (BEV) segment is expected to be the largest during the forecast period. BEVs, which run entirely on electric power, are gaining popularity due to their zero emissions, lower operating costs, and increasing range capabilities. The growth of this segment is directly tied to the expansion of the EV market, as consumers and governments push for cleaner transportation options.

The commercial vehicles segment is expected to have the highest CAGR during the forecast period

The commercial vehicles segment is expected to have the highest CAGR during the forecast period. This growth is attributed to the increasing adoption of electric buses, trucks, and vans for commercial use, driven by the need to reduce emissions and comply with stringent environmental regulations. Electric commercial vehicles require durable, high-capacity batteries, pushing advancements in battery technology and production. This segment's expansion reflects the broader trend towards electrification in the transportation sector.

Region with largest share:

The Asia Pacific region is positioned to dominate the electric vehicle battery market, holding the largest market share. This dominance is due to the rapid adoption of electric vehicles in countries like China and Japan, supported by strong government policies, incentives, and investments in EV infrastructure. The region's leading position in battery manufacturing and technology development further strengthens its market leadership.

Region with highest CAGR:

The Asia Pacific region also anticipates rapid growth in the electric vehicle battery market, with the highest CAGR during the forecast period. The growth is fueled by increasing environmental awareness, rising fuel prices, and the growing presence of EV manufacturers in the region. Additionally, government initiatives across the region to promote electric mobility, such as subsidies and tax exemptions for EVs, are expected to drive the demand for electric vehicle batteries.

Key players in the market

Some of the key players in Electric Vehicle Battery Market include Contemporary Amperex Technology Co. Ltd. (CATL), Panasonic Corporation, LG Chem, BYD Company Limited, Samsung SDI Co., Ltd., SK Innovation Co., Ltd., A123 Systems LLC, Johnson Controls International plc, Toshiba Corporation, GS Yuasa Corporation, Hitachi Chemical Co., Ltd., Envision AESC, Northvolt AB, Lithium Energy Japan (LEJ), Farasis Energy, BAK Power Battery Co., Ltd., CALB (China Aviation Lithium Battery), EnerSys, Blue Solutions (Bollore Group), and Primearth EV Energy Co., Ltd. (PEVE).

Key Developments:

In May 2024, leading electric-vehicle battery supplier Contemporary Amperex Technology Co. Ltd. (CATL) is expanding its lineup to capture diverse demand among automakers, including with a recent release that promises a 1,000 kilometer range on a single charge. Unveiled at the Beijing auto show on April 25, the Shenxing Plus builds on CATL's Shenxing lithium iron phosphate (LFP) battery released in August. The 1,000-km driving range was made possible by continuous technological advancements, said Gao Huan, chief technology officer of CATL's Chinese e-car business, that day.

In April 2024, Panasonic Energy is discussing a potential joint venture with Indian Oil to produce electric vehicle (EV) batteries in India. The company's interest in India comes after news broke that Tesla Giga Berlin is producing cars for the country. The Japanese battery supplier plans to produce cylindrical lithium-ion batteries in India. The two companies announced that their potential joint venture aims to cater to the growing demand for batteries for two and three-wheeler vehicles, along with energy storage systems in the Indian market.

In April 2024, Factorial Inc. (Factorial), an industry leader in the development of solid-state battery technology for electric vehicle (EV) applications, and LG Chem, a global leader in battery materials, today announced the signing of a memorandum of understanding (MOU) to accelerate the development of solid-state battery materials. The agreement aims to strengthen cooperation in the field of next-generation battery materials and secure future competitive advantage by combining LG Chem's battery material capabilities and Factorial's next-generation battery material and process innovations.

Battery Types Covered:

• Lithium-ion Batteries
• Lead-Acid Batteries
• Nickel-Metal Hydride Batteries
• Solid-State Batteries
• Other Battery Types

Battery Capacities Covered:

• Less than 50 kWh
• 50-100 kWh
• 101-200 kWh
• 201-300 kWh
• More than 300 kWh

Battery Forms Covered:

• Prismatic
• Cylindrical
• Pouch

Material Types Covered:

• Cobalt
• Lithium
• Natural Graphite
• Manganese
• Iron
• Phosphate
• Nickel
• Other Material Types

Propulsion Types Covered:

• Battery Electric Vehicles (BEV)
• Hybrid Electric Vehicles (HEV)
• Plug-in Hybrid Electric Vehicles (PHEV)
• Fuel Cell Electric Vehicles (FCEV)

Battery Components Covered:

• Anode
• Cathode
• Electrolyte
• Separator
• Current Collectors
• Other Battery Components

Vehicle Class Covered:

• Passenger Cars
• Two-Wheelers
• Commercial Vehicles

End Users Covered:

• Original Equipment Manufacturers (OEMs)
• Aftermarket

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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