Electric Vehicles (EV) Battery Market
Report ID: SQMIG25A2277
Report ID: SQMIG25A2277
sales@skyquestt.com
USA +1 351-333-4748
Report ID:
SQMIG25A2277 |
Region:
Global |
Published Date: January, 2025
Pages:
224
|Tables:
90
|Figures:
70
Global Electric Vehicle Battery Market size was valued at USD 97.3 Billion in 2024 and is poised to grow from USD 108.39 Billion in 2025 to USD 257.08 Billion by 2033, growing at a CAGR of 11.4% during the forecast period (2026–2033).
The Electric Vehicle (EV) Battery Market has seen explosive growth, driven by an overall trend towards cleaner mobility and stricter emission regulations. One of the factors driving this growth is the increase in demand for electric vehicles, which is being incentivized by governments through tariffs and subsidies, and climate-action targets designed to dramatically decrease emissions. In addition, rapidly advancing battery technologies, particularly changes in chemistry, with lithium-ion, solid-state, and battery fast-charging, constantly improve energy density, safety, and longevity. As renewable energy sources start to integrate with EV charging in public and non-public charging infrastructure, and as battery gigafactories are scaled by companies such as Tesla, CATL, and LG Energy Solution, adoption will quickly accelerate. Lastly, the decrease in cost per kilowatt hour of EV batteries will increase affordability and further pressure manufacturers and consumers to shift from internal combustion engines to electric drivetrains.
On the other hand, the EV battery market has many restraints that may negatively impact continued growth. The inability to scale production of raw materials - particularly lithium, cobalt, and nickel presents a serious supply chain risk as we see price volatility. With environmental threats posed by mining and battery disposal as a legacy of saving the planet, the environmental activity surrounding the mining of EV battery components and post-lifecycle battery use, remains important - despite improvements in recycling technology. High upfront costs, inadequate charging infrastructure, particularly for developing geographies, and the degradation of performance over time are also challenges on an ongoing basis. Geopolitical tensions and trade constraints associated with critical minerals have made the supply environment more complex. As national governments begin to localize battery manufacturing while also securing their sourcing of materials for EV production, these barriers may prolong EV adoption in emerging markets where cost sensitivity and lack of infrastructure are greater concerns.
Nevertheless, the outlook for the EV battery market is positive, supported by net new investments in battery R&D, government initiatives and support for clean transportation, as well as shifting consumer demand patterns. New solutions and developments are emerging, such as vehicle-to-grid (V2G)-mode integration, second-life battery applications, and advanced battery management systems. As OEMs commit to their electrification aspirations and extend their EV offerings, the demand for effective, ecological, and effective batteries will be exponentially higher. The EV battery market is a key component of the transition away from fossil fuels on a global scale.
How AI is Transforming Electric Vehicle Battery Market?
Artificial Intelligence (AI) is transforming the Electric Vehicle (EV) battery market by speeding up innovations in material attributes, safety, and design processes. Machine learning tools are now able to identify battery defects more rapidly and accurately, condensing the time for testing and significantly improving quality control in production environments—some organizations have even doubled their defect detection rates (i.e., from scanning every few minutes to every few seconds). AI platforms such as IONETIC’s Arc system have replaced traditional methods of investigating battery-pack projects, reducing the cost and time spent on design by about half through automating design optimization and integrating specific components that have been previously verified.
A good example of the transformation that is occurring in this market sector, is the announcement made by SES AI Corporation. Back in January, 2025, SES AI, through its AI-based discovery tools, secured two contracts for a total of US $10M to work on developing new electrolyte materials for lithium-metal and lithium-ion batteries with two global OEMs (original equipment manufacturers). The contracts highlight how innovators are using generative and predictive AI models to make more significant advances in battery chemistry by enhancing energy density, safety, and life-cycle performance in the next gen EV systems.
Market snapshot - 2026-2033
Global Market Size
USD 66.6 billion
Largest Segment
Two-Wheeler
Fastest Growth
Growth Rate
21.2% CAGR
To get more insights on this market click here to Request a Free Sample Report
Global Electric Vehicle Battery Market is segmented By Battery Type, By Material, By Component, By Chemistry Type, By Battery Form, By Propulsion, By Vehicle Type, By Battery Capacity, By Method, By End User, By Sales Channel and region. Based on By Battery Type, the market is segmented into Lithium-Ion, Lead Acid, Nickel-Metal Hydride, Solid-State and Others. Based on By Material, the market is segmented into Cobalt, Lithium, Natural Graphite, Manganese, Iron, Phosphate, Nickel and Other Material Types. Based on By Component, the market is segmented into Positive Electrode, Negative Electrode, Electrolyte and Separator. Based on By Chemistry Type, the market is segmented into NMC (Nickel Manganese Cobalt), LFP (Lithium Iron Phosphate), NCA (Nickel Cobalt Aluminum), LTO (Lithium Titanate) and LMO (Lithium Manganese Oxide). Based on By Battery Form, the market is segmented into Prismatic, Pouch and Cylindrical. Based on By Propulsion, the market is segmented into BEV, PHEV and FCEV. Based on By Vehicle Type, the market is segmented into 2 and 3-Wheeler Vehicle, Passenger Car, Light Commercial Vehicle, Medium and Heavy Commercial Vehicle, Off Highway Vehicle and Marine & Aviation Application. Based on By Battery Capacity, the market is segmented into Below 50 KWH, 50-110 KWH, 111-200 KWH, 201-300 KWH and Above 301 KWH. Based on By Method, the market is segmented into Wire Bonding, Laser Bonding and Ultrasonic Metal Welding. Based on By End User, the market is segmented into Automotive OEMs, Battery Pack Assemblers, Charging Infrastructure Providers, Fleet Operators and Utilities (for Second Life/ESS batteries). Based on By Sales Channel, the market is segmented into OEM, Aftermarket and Energy Storage Integrator (Second Life). Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Which Vehicle Segments Are Driving Growth in the Electric Vehicle Battery Market?
The passenger car segment accounted for more than 40.0% of the market by 2022. This is driven by the growing sales of electric passenger vehicles such as sedans, hatchbacks, SUVs, etc. (XUV, station wagon, minivan). This segment grows according to the IEA, the global electric vehicles battery market witness's exponential growth as sales exceeds 10 million by 2022. Electric cars sales are expected to remain strong through 2023. More than 2.3 million electric cars are sold in the first quarter of this year, representing an increase of almost 25% compared to the same period in 2022.
The two-wheeler segment is expected to grow at the highest CAGR during the forecast period. Currently, two-wheelers are one of the most electrified products on the market. For example, due to the size of the two-wheeler market, India is one of the first countries to promote two-wheeler electric vehicles, which are backed by state and local governments. On the other hand, it is expected that the light commercial vehicle segment will grow at the second highest CAGR during the forecast period. Commercial and light vehicles are also seeing an increase in electrification. Globally, electric light commercial vehicle (LCV) sales increased by more than 90% by 2022, reaching 310,000 vehicles.
Which EV Segments Are Leading the Battery Market Growth and Why?
The battery electric vehicle (BEV) segment dominated the market and accounted for over 71.0% of the global revenue by 2022. The segment is also expected to grow at the highest CAGR during the forecast period BEV types are fully electric vehicles, with rechargeable battery packs. The increasing popularity of removable rechargeable EV batteries can be attributed to government-sponsored policies aimed at achieving zero emissions soon to enhance consumer satisfaction with BEV types are great. These batteries can be reused many times, thus reducing waste, extending their life, which is necessary to achieve a zero-carbon footprint
The plug-in hybrid electric vehicle (PHEV) segment is expected to grow at a significant CAGR during the forecast period. PHEVs combine electric motors with batteries and other fuel sources to power an internal combustion engine or alternative fuels, such as diesel or gasoline, passenger cars. Although many are hybrid electric vehicles, they are plug-in though, but also available in a variety of commercial products, such as buses, vans and motorcycles, Trucks, Trains, and Military Vehicles.
To get detailed segments analysis, Request a Free Sample Report
Why Asia Pacific Dominating Electric Vehicle Battery Market in 2024?
The Asia-Pacific region continues to dominate the global electric vehicle (EV) battery market, contributing more than 60% of total production in 2023, with China alone responsible for almost 55%. This dominance is supported by aggressive national policies to grow EV usage and battery manufacturing.
China Electric Vehicle Battery Market
China's CATL leads the way with ~37% of the global market share (260 GWh in 2023), largely due to favourable government subsidies (NEV policy, “Made in China 2025”) and an extensive supply chain. To preserve CATL’s competitiveness, in July 2025, China prohibited the export of battery cathode technology.
India Electric Vehicle Battery Market
India is making significant progress, supported by its USD 2–2.5 b PLI scheme, achieving approximately 12 GWh of domestic capacity by 2023 and a target of 30 GWh by 2025. It is also starting to see JSW Group and Tata-backed initiatives take shape. In 2025, JSW is negotiating cell technology tie-ups with Chinese & Korean companies to establish manufacturing plants in Maharashtra.
South Korea Electric Vehicle Battery Market
South Korea has a bunch of major players including LG Energy Solution and Samsung SDI alongside SK On, who is responsible for about 14% of the market. Government R&D funding and plans to cut emissions are having positive impacts in the market. In April 2025, LG confirmed an additional investment of US $1.7 b, to further build a battery cell plant in Indonesia, with Hyundai.
How is North America Fastest Growing being in Electric Vehicle Battery Industry?
North America is emerging as a fast-growing region, driven by strong federal backing. The Department of Energy’s Battery500 program and Bipartisan Infrastructure Law have further accelerated domestic gigafactory construction. With automakers like GM, Ford, and Stellantis investing heavily in U.S. battery plants, the region’s EV battery capacity has increased by over 60% in recent years.
U.S. Electric Vehicle Battery Market
GM is the leading U.S. EV battery maker with multiple gigafactories. Ultium Cells platform and collaboration with LG Energy Solution and Samsung SDI are providing the ramp to gigafactory production. GM is making investments to fund the gigafactories through loans from the U.S. DOE and using incentives from the Inflation Reduction Act, and is investing in LFP (Lithuim Iron Phosphate) and substantiated lithium-manganese-rich so that it is not reliant in the future on costly raw materials, and decrease production costs, as part of GM's effort to localize its supply chain.
Canada Electric Vehicle Battery Market
LG & Stellantis are developing CA$5 b battery gigafactory in Windsor, Ontario, through their NextStar Energy JV. Canadian federal and Ontario governments are providing tax incentives to encourage investment into domestic EV battery capability by 2025.
Why Europe is second-largest share in Electric Vehicle Battery Market?
Europe occupies a significant portion of the EV battery market, with 25–30% of all demand. However, Europe is aggressively catching up to Asia in terms of closing the gap. The European Commission introduced the European Battery Alliance (EBA). Europe has pioneered the EU Battery Regulation with sustainability, recycling, and circular economy policies.
Germany Electric Vehicle Battery Market
As the leader in the Battery market in Europe (~28.8% in 2024), Germany has made heavy investments by Volkswagen in its battery gigafactories like Salzgitter (40 GWh intended by 2025) as well as strong state-sponsored subsidies. CATL’s Erfurt Factory is scaling from 8 GWh to 14 GwH, incentivized by German subsidies to increase capacity.
France Electric Vehicle Battery Market
France ranks second in terms of EU battery output due in part to ACC’s gigafactory in Douvrin (~40 GWh joint venture Stellantis-TotalEnergies-Mercedes), and Verkor in Dunkirk that is expanding liters from 8 GWh to 16 GWh with €2 billion (to support) from the national and EU government.
UK Electric Vehicle Battery Market
The UK’s AESC gigafactory in Sunderland secured £1 billion in government-backed financing, including UK Export Finance support. Targeting 15.8 GWh annual capacity by 2026 to supply Nissan, it underscores the UK’s focus on homegrown EV manufacturing resilience.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Electric Vehicle Battery Market Drivers
Reduce Electric Car Battery Costs to Boost Growth:
Rapid Expansion in the Electric Vehicles:
Electric Vehicle Battery Market Restraints
Raw Material Shortages that may Hinder Market Growth:
Lack of Standardization:
Request Free Customization of this report to help us to meet your business objectives.
The competitive environment of the Global Electric Vehicles Battery Market is dynamic and characterized by the presence of a mix of well-established brands, emerging players, and niche producers. Innovation is a key competitive factor. The global electric vehicle battery market witnesses a highly competitive environment characterized by the presence of leading battery manufacturers, automotive OEMs and technical supplier's. Key players in the market are actively engaged in R&D activities to provide battery performance increased, durable, powerful and cost-cutting Yanti, which offers better energy efficiency, faster charging times and wider driving range.
Top Player’s Company Profiles
Recent Developments in Electric Vehicle Battery Market
Is battery chemistry shifting toward LFP and sodium‑ion formats?
Global governments are supporting a move toward safer, less expensive chemistries—especially LFP and sodium ion batteries. Regulations in Europe and China will require recycled content and a less reliance on nickel/cobalt. CATL's launch of sodium-ion Naxtra brand (175 Wh/kg, −30 °C performance) is scheduled for April 2025, with backing from such regulations for support.
Is recycling becoming central to battery supply policy?
At least a dozen national programs now have circular battery supply chains in mind. In the UK, Jaguar Land Rover's battery recycling initiative under the UK DRIVE35 scheme received £8 million in government grants from a total of £2.5 billion in public money. Europe seeks to have 70 percent recycling efficiency of Li-ion batteries by 2030 under the EU Battery Regulation.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
The strategic partnership between battery manufacturers, e-mobility providers and energy suppliers is also expected to boost sales over the forecast period. Suppliers provide market-leading use of advanced technology to improve battery durability and life during use. These suppliers are using strategies and advanced methods to meet their zero emissions goals, and to increase battery efficiency. These efforts have extended lifespan, reduced electronic waste and reduced the environmental impact associated with their manufacture and operation.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 97.3 Billion |
| Market size value in 2033 | USD 257.08 Billion |
| Growth Rate | 11.4% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Electric Vehicles (EV) Battery Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Electric Vehicles (EV) Battery Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Electric Vehicles (EV) Battery Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Electric Vehicles (EV) Battery Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
REQUEST FOR SAMPLE
REQUEST FREE CUSTOMIZATION
Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Feedback From Our Clients
USA (+1) 351-333-4748
