Dublin, March 05, 2025 (GLOBE NEWSWIRE) — The “EV Battery Market by Battery Type (Li-Ion, NiMH, SSB), Vehicle Type (PC, Vans/Light Truck, MHCV, Bus & OHV), Propulsion, Battery Form, Material Type, Battery Capacity, Method, Li-Ion Battery Component, and Region – Global Forecast to 2035” report has been added to ResearchAndMarkets.com’s offering.
The global EV Battery market is projected to reach USD 91.93 billion in 2024 to USD 251.33 billion in 2035, at a CAGR of 9.6% from 2024-2035.
The EV battery market is experiencing rapid growth driven by increasing electric vehicle adoption, advancements in battery technology, and supportive government policies. Growing demand for longer-range, faster-charging batteries has spurred innovations such as Honda’s plan to produce solid-state batteries offering up to 620 miles on a single charge by 2024.
Additionally, partnerships and investments are fueling expansion, such as Stellantis and CATL’s USD 4.2 billion venture for a lithium iron phosphate battery plant in Spain, announced in December 2024. With OEMs launching new EV models and battery manufacturers scaling production, the EV battery market is poised for significant expansion.
Solid-state battery is expected to show a significant growth rate in the EV battery market during the forecast period
Solid-state batteries are anticipated to witness significant growth in the EV battery market due to their potential to revolutionize energy density, safety, and charging efficiency. These batteries replace the liquid electrolyte found in conventional lithium-ion batteries with a solid electrolyte, offering enhanced thermal stability, reduced risk of fires, and longer lifespans. Their higher energy density can substantially increase EV range while enabling faster charging times, making them a game-changer for EV adoption. Recent developments underscore their growing momentum.
In December 2024, Honda announced plans to produce solid-state batteries for EVs capable of delivering up to 620 miles (1,000 kilometers) on a single charge – more than double the range of many existing electric vehicles. Similarly, in September 2024, Factorial collaborated with Mercedes-Benz to develop the Solstice battery, an all-solid-state battery featuring a novel dry cathode design. This innovation promises an energy density of up to 450Wh/kg and more efficient, sustainable production processes, marking a significant leap in solid-state battery technology. With leading automotive and battery companies intensifying their R&D efforts and governments incentivizing advancements in battery technology, solid-state batteries are poised to play a pivotal role in shaping the future of the EV market, addressing key challenges like range anxiety, safety concerns, and charging infrastructure limitations.
Passenger Car is expected to hold the largest share in the EV Battery market during the forecast period
Passenger cars are expected to dominate the EV battery market over the study period, capturing the largest market share due to surge in consumer demand, supportive government policies, and the increasing availability of diverse EV models. Governments worldwide are implementing stringent regulations on vehicle emissions and offering subsidies to promote EV adoption, driving passenger car sales. Additionally, advancements in EV battery technology, such as enhanced energy density, faster charging, and lower costs, have made electric passenger cars more accessible to the mass market. Major automotive OEMs are gearing up for this transition, with several passenger car EV models slated for release in the coming years.
For instance, Renault’s highly anticipated Renault 5 E-Tech, set for a 2026 launch, will feature advanced lithium-ion batteries sourced from AESC. Similarly, Mercedes-Benz plans to introduce the EQA 300 4MATIC in 2025, equipped with a high-performance NMC battery provided by SK ON, a subsidiary of SK Innovation. These vehicles highlight the rising demand for advanced EV batteries, driving innovation and production growth in the battery industry. Advances in battery chemistry, such as the shift from LFP to NMC and NCA, are boosting energy density and driving ranges, fueling market expansion. Collaborations between OEMs and battery manufacturers are accelerating high-performance battery development. For instance, in November 2024, LG Energy Solution announced a five-year agreement to supply 4695 cylindrical lithium-ion batteries for Rivian’s R2.
Investments in new technologies like solid-state batteries and silicon anode chemistries, along with scaling production through gigafactories, are further enhancing market growth. These trends underscore the synergy between OEMs and battery makers, positioning the passenger car segment as the largest driver of the EV battery market and advancing the global shift to sustainable transportation.
Europe set to witness a notable growth in EV battery market during the forecast period
Europe is poised to experience remarkable growth in the EV battery market over the forecast period, fueled by stringent emission reduction targets, rising EV demand, and increasing investments in battery infrastructure. The EU’s March 2023 law mandates zero CO? emissions for all new cars sold by 2035, alongside a 55% reduction in CO? emissions by 2030 compared to 2021 levels. These ambitious targets are driving the rapid decarbonization of new car fleets, significantly boosting EV adoption and, consequently, the EV battery market.
While the EU has pledged a legal pathway for e-fuels vehicles beyond 2035, the focus remains on zero-emission solutions for cars and vans. European OEMs are heavily investing in EV and battery developments. For instance, in December 2024, Stellantis NV and CATL announced an estimated USD 4.3 billion joint venture to build a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. Similarly, BMW Group plans to open five battery factories near auto manufacturing hubs, including facilities in Lower Bavaria and Debrecen, Hungary, to support its Neue Klasse electric vehicles.
Key battery manufacturers are also expanding their presence in Europe. Major players like Northvolt, LG Energy Solution, and CATL are establishing battery gigafactories to meet the growing demand. These developments underscore Europe’s commitment to becoming a global leader in EV batteries, supported by progressive policies, a robust automotive ecosystem, and increasing investments from OEMs and suppliers.
Research Coverage
The report covers the EV Battery market in terms of Battery Capacity (< 50 kWh, 51-110 kWh, 111-201 kWh, 201-300 kWh, > 301 kWh), Battery Form (Prismatic, Pouch, Cylindrical), Battery Type (Lithium-ion, Nickel-metal Hydride, Solid-state, Sodium-ion), Lithium-ion Battery Component (Negative Electrode, Positive Electrode, Electrolyte, Separator), Material Type (Cobalt, Lithium, Natural Graphite, Manganese, Iron, Phosphate, Nickel), Method (Wire Bonding, Laser Bonding, Ultrasonic Metal Welding), Propulsion (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle, Hybrid Electric Vehicle), Vehicle Type (Passenger Cars, Vans/Light Trucks, Medium & Heavy Trucks, Buses, Off-highway Vehicles), and Region. It covers the competitive landscape and company profiles of the significant EV Battery market players.
The study also includes an in-depth competitive analysis of the key market players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
The EV Battery market is dominated by major players, including Contemporary Amperex Technology Co., Limited (China), BYD Company Ltd. (China), LG Energy Solution Ltd. (South Korea), CALB (China), SK Innovation Co., Ltd. (South Korea) and more. These companies are expanding their portfolios to strengthen their EV battery market position.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 371 |
| Forecast Period | 2024-2035 |
| Estimated Market Value (USD) in 2024 | $91.93 Billion |
| Forecasted Market Value (USD) by 2035 | $251.33 Billion |
| Compound Annual Growth Rate | 9.6% |
| Regions Covered | Global |
Market Dynamics
- Drivers
- Rise in Government Incentives and OEM Investments
- Advancements in Battery Technologies
- Government Strategies to Promote Adoption of EVs
- Declining Prices of EV Batteries
- Restraints
- Geopolitical Instability and Supply Chain Disruptions
- Shortage of Charging Infrastructure in Emerging Economies
- Emergence of Alternative Fuel Options
- Opportunities
- Growth of BaaS in EV Battery Market’s Boom
- Development of Innovative Solid-State Batteries
- Advancements in ESSS
- Challenges
- High Initial Cost
- Shortage of Lithium
- Safety Concerns
- Cost Disparity Between Electric and Conventional Vehicles
Case Study Analysis
- BYD Developed Blade Battery to Prioritize Safety and Durability Without Compromising Performance
- Wipro Pari Leveraged Cognex’s Advanced Machine Vision System to Address Complexities of EV Battery Manufacturing
- Northvolt Adopted Autodesk’s Integrated Software Solution to Implement Digital Factory Approach That Connects Battery Design and Manufacturing
- Maxwell Energy Offered Cutting-Edge Ultracapacitor Technology to Enhance Energy Recovery and Power Delivery
Additional insights covered include:
- Investment and Funding Scenario
- Patent Analysis
- Technology Analysis
- HS Code: Lithium Cells and Batteries (850650)
- Regulatory Landscape
- Key Conferences & Events, 2025-2026
- Key Stakeholders & Buying Criteria
- OEM Analysis
- Supplier Analysis
- Trends & Disruptions Impacting Customer Business
- Rapid Development of Nevs to Drive Growth of EV Battery Market
- Analysis of Price and Cost of Lithium-Ion Batteries
- Pricing Analysis
- Impact of AI on EV Battery Market
- Ecosystem Analysis
- Value Chain Analysis
Companies Profiled in the Report
- Contemporary Amperex Technology Co. Limited
- BYD Company Ltd.
- LG Energy Solution
- Calb
- SK Innovation Co. Ltd.
- Panasonic Holdings Corporation
- Samsung SDI
- Gotion
- Sunwoda Electronic Co. Ltd.
- Farasis Energy (Ganzhou) Co. Ltd.
- Toshiba Corporation
- Mitsubishi Corporation
- Enersys
- Exide Industries Limited
- E-One Moli Energy Corp.
- Targray Technology International Inc.
- Altair Nanotechnologies Inc.
- Clarios
- Northvolt AB
- Leclanche SA
- Envision Group
- A123 Systems (Subsidiary of Wanxiang Group)
- GS Yuasa International Ltd.
- Automotive Energy Supply Corporation
- Rept Battero Energy Co Ltd.
- Automotive Cells Company
- Blueoval SK
- Cellforce Group GmbH
- Ultium Cells
- One Battery
- Sila Nanotechnologies Inc.
- Morrow Batteries
For more information about this report visit https://www.researchandmarkets.com/r/ersmfl
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