Automotive Lithium Ion Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Automotive Lithium Ion Battery Market is Segmented by Vehicle Type (Battery Electric Vehicle, Plug in Hybrid Electric Vehicle and Hybrid Electric Vehicles), Channel Sales Type (OEMs and Aftermarket) and Geography.

Automotive Lithium Ion Battery Market Size

automotive lithium Ion battery market
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: > 16 %

Major Players

automotive lithium Ion battery market size

*Disclaimer: Major Players sorted in no particular order


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Automotive Lithium Ion Battery Market Analysis

The Automotive Lithium Ion Battery Market is projected to grow with a CAGR of more than 16% during the forecast period.

  • Some of the major factors driving the growth of the market are growing environmental concerns (owing to rising exhaust emissions), enactment of stringent emissions and fuel economy norms, and increasing government initiatives, in terms of subsidies and benefits for increasing the adoption rate of electric vehicles.
  • Asia-Pacific is expected to witness a high growth rate during the forecast period. However, incidents such as like India lifting and reducing subsidies for the purchase of electric vehicles and US administration rolling back numerous rules related to environment and air pollution may hinder the growth of the market in the region. In India, the government in 2017, lifted subsidies on mild-hybrid vehicles under the FAME scheme (State of Karnataka lost subsidy of INR 75 crores from central government). The cost of hybrid and electric vehicles and lack of charging infrastructure may also hinder the growth rate of market in emerging economies as cost sensitive customers are finding conventional IC engine vehicles affordable.
  • Research and Development in the battery technology has increased the battery density and has also brought down the costs. Battery manufacturers are partnering with OEMs and this is in-turn vehicle sales as well.

Automotive Lithium Ion Battery Industry Segmentation

The automotive lithium ion battery market covers the latest trends and technological development in the automotive Li-ion batteries market, demand of the vehicle type (Battery Electric Vehicle, Plug in Hybrid Electric Vehicle and Hybrid Electric Vehicles), Channel Sales (OEMs and Aftermarket) and geography.

Vehicle Type
Battery Electric Vehicle
Plug-in Hybrid Electric Vehicle
Hybrid Electric Vehicles
Channel Sales Type
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Asia Pacific
South Korea
Rest of Asia-Pacific
Rest of the World
United Arab Emirates
Other Countries

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Automotive Lithium Ion Battery Market Trends

This section covers the major market trends shaping the Automotive Lithium Ion Battery Market according to our research experts:

Government Initiatives for EVs will Drive the Market

Lithium ion batteries are used in Electric vehicles majorly, so a growth in demand of EVs is directly proportional to the growth in sale of Li-ion batteries for automobiles. After introduction of various government initiatives for grant and subsidies towards purchase of EVs and awareness about how fossil fuels are harming our environment there was considerable growth in the sale of EVs during the period 2014-19. And this growth is expected to continue because of the increasing fuel prices of gasoline and diesel and the amount of pollutants these fossil fuels release into the environment. 

Most of the Governments around the globe have either lifted taxes or have given a considerable amount of tax exemption on purchase of EVs. These initiatives by the govt have attracted a lot of buyers to purchase EVs and in turn the sales of Lithium ion batteries also increased.

 automotive lithium Ion battery market share

Asia-Pacific is Expected to be the Market Leader

During the 2012-2018 period the region witnessed an exceptional growth rate of 78% which is higher than any other part of the world by a considerable margin. Despite the already high growth, the market still has high potential for further increments. In India only 280,000 electric vehicles were sold till November 2019, according to Economic Survey. There is a lack of subsidies from government when it comes to Indian market, so it is expected that the govt will establish regulations and norms for increasing sales during the forecast period. 

China which is the global leader for sales of EVs has sold about 1.26 million EVs till the end of year 2019, still the Chinese market is having a great potential for EVs. These two countries are the major growing economies of the world. Growing income levels and environmental concerns in these major countries are also major reasons which would drive the market over the forecast period. In April 2020, the Chinese government has introduced 10% service tax waiver for Electric vehicles to boost the demand due to Covid-19 impact.

automotive lithium Ion battery industry

Automotive Lithium Ion Battery Industry Overview

The Automotive Li-ion market is highly fragmented, with several players accounting for significant amounts of shares in the market. Some of the prominent companies in the automotive Li-Ion market are Panasonic Corporation, Hitachi Ltd., BYD Co Ltd., Toshiba Corporation, LG Chem and others. Companies are investing heavily in research and development for the innovation of new and advanced products and technologies that are increasing the life and performance of the automotive batteries. For instance, Exide batteries which is India’s largest lead acid battery maker had formed a joint venture with Switzerland based Leclanch SA, which is one of world’s leading energy storage solution company in June-19.

Automotive Lithium Ion Battery Market Leaders

  1. Panasonic Corporation

  2. Hitachi Ltd.

  3. Toshiba Corporation

  4. Samsung SDI Co. Ltd.

  5. LG Chem Ltd.

*Disclaimer: Major Players sorted in no particular order

Panasonic Corporation, Hitachi Ltd.,  Toshiba Corporation, Samsung SDI Co. Ltd., LG Chem Ltd., BYD Co. Ltd., GS Yuasa Lithium Power, Tianjin Lishen Battery joint stock Co. Ltd

Automotive Lithium Ion Battery Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Vehicle Type

      1. 5.1.1 Battery Electric Vehicle

      2. 5.1.2 Plug-in Hybrid Electric Vehicle

      3. 5.1.3 Hybrid Electric Vehicles

    2. 5.2 Channel Sales Type

      1. 5.2.1 OEMs

      2. 5.2.2 Aftermarket

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Rest of Europe

      3. 5.3.3 Asia Pacific

        1. India

        2. China

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. Brazil

        2. Mexico

        3. United Arab Emirates

        4. Other Countries


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Panasonic Corporation

      2. 6.2.2 Hitachi Ltd.

      3. 6.2.3 Toshiba Corporation

      4. 6.2.4 Samsung SDI Co. Ltd.

      5. 6.2.5 LG Chem Ltd.

      6. 6.2.6 BYD Co. Ltd.

      7. 6.2.7 GS Yuasa Lithium Power

      8. 6.2.8 Tianjin Lishen Battery joint stock Co. Ltd

      9. 6.2.9 OptimumNano Energy Co. Ltd.

      10. 6.2.10 Contemporary Amperex Technology Co. Ltd


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Automotive Lithium Ion Battery Market Research FAQs

The Automotive Lithium Ion Battery Market is studied from 2018 - 2028.

The Automotive Lithium Ion Battery Market is growing at a CAGR of >16% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

Asia Pacific holds highest share in 2021.

Panasonic Corporation , Hitachi Ltd., Toshiba Corporation, Samsung SDI Co. Ltd., LG Chem Ltd. are the major companies operating in Automotive Lithium Ion Battery Market.

Automotive Lithium Ion Battery Industry Report

Statistics for the 2023 Automotive Lithium Ion Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Lithium Ion Battery analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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