Electric Vehicle Battery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Electric Vehicle Battery Market Size & Share and It is Segmented by Battery Type (Lead-Acid Battery, Lithium-Ion Battery, and Other Battery Types), Vehicle Type (Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), and Hybrid Electric Vehicle (HEV)), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The Report Offers the Market Size and Forecasts for Electric Vehicle Battery in Revenue (USD) for all the Above Segments.

EV Battery Market Size

Electric Vehicle Battery Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 62.07 Billion
Market Size (2029) USD 178.46 Billion
CAGR (2024 - 2029) 23.52 %
Fastest Growing Market Asia Pacific
Largest Market Europe

Major Players

Electric Vehicle Battery Market Major Players

*Disclaimer: Major Players sorted in no particular order


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EV Battery Market Analysis

The Electric Vehicle Battery Market size is estimated at USD 62.07 billion in 2024, and is expected to reach USD 178.46 billion by 2029, growing at a CAGR of 23.52% during the forecast period (2024-2029).

  • Over the medium term, factors such as declining lithium-ion battery prices, growing demand for electric vehicles and supportive government policies to promote electric vehicle sales, are expected to be one of the most significant drivers for the electric vehicle battery market during the forecast period.
  • On the other hand, demand-supply gap of the vital raw materials. This poses a threat to the electric vehicle battery market during the forecast period.
  • Nevertheless, supportive government policies and investment for the deployment of the public charging infrastructure clubbed with the increasing efficiency of the electric vehicle are expected to create a significant opportunity for the market's growth in the near future.
  • Asia-Pacific is expected to witness a significant growth in the electric vehicle battery market, owing to the increasing demand from countries such as China, India, Japan, and other countries.

EV Battery Market Trends

Lithium-ion Battery to Dominate the Market

  • A lithium-ion battery is a type of rechargeable battery installed in electric vehicles and has a higher energy density when compared to nickel-cadmium and lead-acid rechargeable batteries. These features of the lithium-ion batteries will enable the manufacturers to save space by reducing the overall battery pack size. It is one of the lightest metals. Although lithium-ion batteries do not contain any lithium metal, they contain ions.
  • Lithium-ion battery is gaining more popularity compared to other battery types, majorly due to its favorable capacity-to-weight ratio. Other factors that contribute towards boosting its adoption include better performance (long life and low maintenance), better shelf life, Environment friendly and fast charging. The price of lithium-ion batteries is usually higher than other batteries but it has started declining due to increase in R&D activities by other competitors.
  • Lithium-ion batteries have traditionally been used mainly in consumer electronic devices, such as mobile phones and PCs, but are increasingly being redesigned for use as the power source of choice in hybrid and the complete electric vehicle (EV) range, owing to factors, such as low environmental impact, as EV does not emit any CO2, nitrogen oxides, or any other greenhouse gases.
  • SVOLT energy Technology plans to build the first European lithium-ion cell factory in Saarlouis, Germany, with production scheduled to begin by the end of 2023.
  • In May 2022, Stellantis N.V. and Samsung SDI announced the construction of an electric-vehicle lithium-ion battery manufacturing facility in Kokomo, Indiana, United States. It is anticipated that the plant will be operational in 2025, with an initial capacity of 23 GWh, with an aim to increase to 33 GWh in the next few years. The joint venture company is going to invest over USD 2.5 billion in the manufacturing plant.
  • Lithium-ion batteries are more than safer than other battery technologies, and all the battery manufacturers ensure safety measures and standards to protect consumers in case of a battery failure.
  • The emergence of new and exciting markets via electric vehicles for both personal and commercial vehicle applications is projected to drive the demand for lithium-ion batteries across the globe. Furthermore, lithium-ion batteries have several merits over other batteries (i.e., valve-regulated lead-acid), which make it preferable to be used in data centers.
  • Further, the share of EVs in total passenger cars has been increasing and owing to the increased sales, the demand for lithium-ion batteries in Europe and North America has been increasing. Moreover, with the 'Green Deal policy' launched in 2019 by the European Union, the share of EVs is likely to increase, further driving the demand for lithium-ion batteries during the forecast timeframe. 'Green Deal Policy' aims to reduce the carbon emission by more than 50% by 2030 to achieve carbon neutrality target by 2050.
  • The sales of electric vehicles is increasing significantly across the world. The global sales reached 7.3 million units in 2022 increased from 4.6 million in 2021. The rising sales of electric vehicles leads to rise in the demand for lithium-ion batteries.
  • Hence, owing to the above points, the lithium-ion batteries are expected to dominate the market during the forecast period.
Electric Vehicle Battery Market: Electric Car Sales, in Million Units, Global, 2015-2022

Asia-Pacific Expected to Witness Significant Growth

  • The Asia-Pacific region is expected to dominate the global market. With the increasing deployment of electric vehicles in countries such as China, Japan, and India, and the high demand for vehicles with urbanization and increasing power purchase parity, the usage of lithium-ion batteries is expected to witness significant growth in the region.
  • Favorable policies, such as the energy efficiency standards and increasing peak demand charges and technological advances, have led to the commercial and industrial (C&I) sector receiving more attention from project developers, primarily driven by strong growth in China and India, which, in turn, is expected to drive the demand for lithium-ion-based energy storage systems in the region.
  • China is one of the largest markets for electric vehicles, and the increasing adoption of electric vehicles in the country has been in line with the clean energy policy. Moreover, the Government of China has been providing both financial and non-financial incentives to promote the adoption of electric vehicles.
  • In India, lithium-ion batteries are mainly used in electric vehicles. India is a major importer of lithium-ion batteries in the Asia-Pacific region and during April-November 2022, the country had imported approximately 548.6 million units of lithium-ion batteries and the country imported around 616.8 million units of lithium-ion batteries during 2021-2022 worth USD 1.83 billion.
  • The government of India is targeting the conversion of two and three-wheelers into 100% electric ones and the total automotive sales to 30% into e-mobility by 2030. Currently, India is dependent on other countries for sourcing EV batteries, which has resulted in the hiked price of EVs. The penetration of EVs in the Indian automotive sector is expected to bolster indigenous manufacturing of Li-ion batteries to make them economically viable.
  • Hence, owing to the above points, Asia-Pacific is expected to witness a significant growth in EV battery market during the forecast period.
Electric Vehicle Battery Market - Growth Rate by Region, 2022-2027

EV Battery Industry Overview

The electric vehicle battery market is moderately fragmented. Some of the major companies in the market (in no particular order) include Panasonic Corporation, LG Energy Solution Ltd, Contemporary Amperex Technology Co. Ltd, Samsung SDI Co. Ltd, and BYD Co. Ltd., amongst others.

EV Battery Market Leaders

  1. Panasonic Corporation

  2. Contemporary Amperex Technology Co Ltd

  3. Samsung SDI Co. Ltd.

  4. BYD Company Limited

  5. LG Energy Solution Ltd

*Disclaimer: Major Players sorted in no particular order

Electric Vehicle Battery Market Concentration
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EV Battery Market News

  • In February 2023, CATL will collaborate with Ford on a USD 3.5 billion battery plant of electric vehicles in the USA's Michigan. As a part of the development, Ford will own the new facility of CATL instead of operating the same as a joint venture. CATL will also help Ford to expedite the development of batteries.
  • In November 2022, Clarios'sOptima launched an all-new lithium-power sport battery line with a focus on facilitating batteries to motorcycles, personal watercraft, snowmobiles, utility task vehicles (UTV), and all-terrain vehicle (ATV)
  • In August 2022, Honda Motor Company announced the development of a lithium-ion battery plant for electric vehicles in the United States with Korean battery supplier LG Energy Solution Ltd for a USD 4.4 billion investment. As part of the partnership, the companies aim to produce approximately 40 GWh of batteries annually for use exclusively in North America's Honda and Acura electric vehicles.

EV Battery Market Report - Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD, until 2028

    3. 4.3 Government Policies and Regulations

    4. 4.4 Recent Trends and Developments

    5. 4.5 Investment Opportunities

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

        1. Declining Lithium-ion Battery Prices

        2. Supportive Government Policies to Promote Electric Vehicle Sales

      2. 4.6.2 Restraints

        1. Demand-Supply Gap of the Vital Raw Materials

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry


    1. 5.1 Battery Type

      1. 5.1.1 Lead-acid Battery

      2. 5.1.2 Lithium-ion Battery

      3. 5.1.3 Other Battery Types

    2. 5.2 Vehicle Type

      1. 5.2.1 Battery Electric Vehicle (BEV)

      2. 5.2.2 Plug-in Hybrid Electric Vehicle (PHEV)

      3. 5.2.3 Hybrid Electric Vehicle (HEV)

    3. 5.3 Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. France

        3. United Kingdom

        4. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. Saudi Arabia

        2. United Arab Emirates

        3. South Africa

        4. Rest of Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Panasonic Corporation

      2. 6.4.2 LG Energy Solution Ltd

      3. 6.4.3 Contemporary Amperex Technology Co. Ltd

      4. 6.4.4 Samsung SDI Co. Ltd

      5. 6.4.5 BYD Co. Ltd

      6. 6.4.6 Narada Power Source Co. Ltd

      7. 6.4.7 East Penn Manufacturing Company

      8. 6.4.8 GS Yuasa Corporation

      9. 6.4.9 Clarios

      10. 6.4.10 Hitachi Ltd

    5. *List Not Exhaustive

    1. 7.1 Rising Investment for the Deployment of the Public Charging Infrastructure Clubbed with the Increasing Efficiency of the Electric Vehicle

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EV Battery Industry Segmentation

An electric vehicle battery (EVB) is a rechargeable battery utilized to power the electric motors of a battery electric vehicle (BEV) or hybrid electric vehicle (HEV). Electric vehicle batteries differ from starting, lighting, and ignition (SLI) batteries, as they are typically lithium-ion batteries designed for high power-to-weight ratio and energy density. Smaller, lighter batteries are desirable because they decrease the vehicle's weight and enhance performance.

The electric vehicle battery market is segmented by battery type, vehicle type, and geography. By battery type, the market is segmented into lead-acid battery, lithium-ion battery, and other battery types. By vehicle type, the market is segmented into battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEV), and hybrid electric vehicles (HEV). The report also covers the market size and forecasts for the electric vehicle battery market across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD).

Battery Type
Lead-acid Battery
Lithium-ion Battery
Other Battery Types
Vehicle Type
Battery Electric Vehicle (BEV)
Plug-in Hybrid Electric Vehicle (PHEV)
Hybrid Electric Vehicle (HEV)
Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
South Africa
Rest of Middle-East and Africa
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EV Battery Market Research FAQs

The Electric Vehicle Battery Market size is expected to reach USD 62.07 billion in 2024 and grow at a CAGR of 23.52% to reach USD 178.46 billion by 2029.

In 2024, the Electric Vehicle Battery Market size is expected to reach USD 62.07 billion.

Panasonic Corporation, Contemporary Amperex Technology Co Ltd, Samsung SDI Co. Ltd., BYD Company Limited and LG Energy Solution Ltd are the major companies operating in the Electric Vehicle Battery Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Europe accounts for the largest market share in Electric Vehicle Battery Market.

The factors driving the growth of the EV Battery Market are a) Increased awareness about environmental concerns, desire for sustainable transportation, longer battery life and faster charging times b) Increased driving ranges, and advancements in battery technology

EV Battery Industry Report

The global EV battery market is experiencing significant growth, driven by advancements in battery technology and increasing consumer demand for electric vehicles (EVs). Innovations such as solid-state batteries, improvements in lithium-ion battery components, and the development of new cathode chemistries like lithium nickel manganese cobalt oxide (NMC) and lithium iron phosphate (LFP) are enhancing the performance, safety, and cost-effectiveness of EV batteries. These technological advancements are making EVs more appealing due to longer battery life, faster charging times, and extended driving ranges. Market dynamics indicate a strong push towards adopting EVs. The market is also witnessing a trend towards laser bonding methods in battery manufacturing, which offers high precision and efficiency. However, the market faces challenges such as high initial investments in battery production facilities and competition from alternative vehicle technologies like hydrogen and ethanol-powered vehicles. Despite these challenges, the opportunities for growth in the EV battery market remain substantial, particularly with the ongoing development of solid-state batteries and the expansion of EV charging infrastructure, which are expected to drive further adoption of electric vehicles globally. Refer to the Mordor Intelligence™ Industry Reports, which provide a comprehensive historical overview and a market forecast outlook, available as a free report PDF download.

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Electric Vehicle Battery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)