Global Electric Vehicle Battery Market Size, Share, Opportunities And Trends By Battery Type (Lithium-Ion, Aluminium-Ion, Hybrid Nickel Metal, Others), By Vehicle Type (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Hybrid Electric Vehicle), And By Geography - Forecasts From 2025 To 2030

The electric vehicle battery market is projected to grow from US$162.681 billion in 2025 to US$289.194 billion in 2030 at a CAGR of 12.19%.

Electric vehicle batteries are high-powered rechargeable batteries made of critical minerals such as lithium-ion and aluminum ions, which offer high current outflow, energy dispersion, and temperature resistance. The booming EV demand globally, followed by government-backed subsidies on EV battery production, is paving the way for future market expansion.

What are the electric vehicle battery market drivers?

• The growing adoption of electric vehicles is driving global market growth.

The ongoing developments in sustainable fuel and alternatives for internal combustion engines have provided a major scope for the usage of electric transportation. With the establishment of zero carbon emission policies and neutrality standards, the demand is expected to boom further in the future. Major nations, namely China, the United States, and Europe, have already taken a major leap toward green mobility adoption, thereby witnessing significant growth in their electric vehicle sales.

According to the International Energy Agency, in 2024, the global electric registration reached 15.2 million units, representing a 10.9% growth over 13.8 million units sold globally in 2023. Moreover, the same source also stated that electric vehicle adoption in China witnessed 24.6% growth in China, 6.2% in Europe, and 21.4% in the United States.

Additionally, the economies are setting targets till 2030 to increase the percent share of electric vehicles in overall automotive sales. Hence, such developments and booming EV adoption are expected to positively impact the demand and supply of EV batteries, thereby augmenting their overall industry expansion in the forecast period.

The electric vehicle battery market restraints:

• Raw material price volatility is posing a challenge to the market expansion  

Electric vehicle batteries are made mainly from critical minerals such as lithium, aluminum, and nickel, among others. With the ongoing trade wars between the USA and China following restrictions on mining operations in economies, the supply chain tends to get disrupted for such minerals. This is causing fluctuations in their overall supply to the battery manufacturers, resulting in price volatility and restraining the overall market expansion.

Segment analysis of electric vehicle battery market:

• Battery electric vehicles, based on vehicle type, will account for a considerable market share  

By vehicle type, the battery electric vehicle is estimated to constitute a significant market share. It is poised for a positive expansion owing to the high applicability of lithium-ion and hybrid-nickel metal batteries in fully electric vehicles, both commercial and passenger. As the economies are exploring new ways of improving sustainable fuel adoption, the demand for battery electric vehicles is anticipated to show positive growth.

According to the “Global EV Outlook 2024” by the International Energy Agency, the battery electric vehicle accounted for 70% of electric vehicle stock in 2023, and major regions, namely China, experienced 15% growth in BEV registration in Q1 2024. The same source further specified that in economies such as the United States, the demand for medium and small fully electric vehicles is high, which is expected to augment the segment growth further for battery electric vehicles. The plug-in hybrid electric vehicles, on the other hand, are anticipated to show constant growth in the coming years.

What are the key geographical trends shaping the electric vehicle battery market:

• Asia Pacific will continue to hold a remarkable market share during the forecast period

Geographically, the electric vehicle battery market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. 

The Asia Pacific market is expected to constitute a considerable market share during the forecast period. It is poised for a positive expansion as major regional economies, namely China, account for a major portion of global electric vehicles and EV battery production. For instance, as per the International Energy Agency, in 2023, China accounted for nearly 60% of new electric vehicle registrations occurring globally. Hence, the country recorded 8.1 million EV registrations in the same year, representing a growth of 35% over 2022’s registration figure.

Likewise, the same source also specified that the demand for electric vehicles in China is also witnessing significant growth, positively driving the country’s production capacity. In 2023, electric vehicle battery demand in China stood at 417 GWh/Year, which showcased a 32.8% growth over demand, as reported in the preceding year.

Additionally, major market players' ongoing investment in establishing battery manufacturing plants in regional economies is further propelling the market expansion. For instance, in April 2024, Panasonic announced the completion of its new battery manufacturing plant in Japan to bolster the company’s competitiveness in producing next-generation EV batteries.

North America and Europe are projected to show positive growth fueled by ongoing government schemes and policies to bolster domestic battery capacity. Moreover, the rapid progression of green mobility adoption in such regions and growing efforts to optimize the energy storage solution for EV applications have stimulated regional market expansion.

Recent development in the electric vehicle battery market:

• In December 2024, LG Energy Solutions and General Motors extended their 14-year battery technology partnership, which involved leveraging multiple advanced battery chemistries and exploring new approaches to reducing their weight and component usage and improving overall performance. The collaboration will enable General Motors to LG’s Ultium cell plants in Tennessee, Ohio, and Warren that produce pouch battery cells.
• In October 2024, Stellantis N.V. formed a strategic collaboration with Factorial Inc., which aimed to accelerate the development of deployment of next-generation EVs powered by Factorial’s “Solid-State Battery Technology’. This marks Stellantis's next step in commercializing such battery technology in its electric vehicles, thereby assessing the real-time demand for new EV battery technology.
• In September 2024, Panasonic collaborated with Subaru Corporation to establish an automotive battery plant in Japan to supply next-generation cylindrical lithium-ion batteries for BEVs. The collaboration marks Subaru’s commitment to selling nearly 1.2 million battery-electric vehicles globally by 2030. 
• In April 2024, Kia Corporation and Hyundai Motor formed a memorandum of understanding (MOU) with Indian battery manufacturer Exide Energy Solution Ltd. to localize their electric vehicle battery production in the Indian market. The company will especially emphasize manufacturing lithium iron phosphate batteries.

Electric vehicle battery market scope:

 

Report Metric	Details
Electric Vehicle Battery Market Size in 2025	US$162.681 billion
Electric Vehicle Battery Market Size in 2030	US$289.194 billion
Growth Rate	CAGR of 12.19%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Battery Type Vehicle Type Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in Electric Vehicle Battery Market	Contemporary Amperex Technology Co., Limited LG Energy Solution BYD Company Limited Panasonic Samsung SDI Co. Ltd
Customization Scope	Free report customization with purchase

 

The electric vehicle battery market is analyzed into the following segments:

• By Battery Type
  • Lithium Ion
  • Aluminum Ion
  • Hybrid Nickel Metal
  • Others
• By Vehicle Type
  • Battery Electric Vehicle
  • Plug-In Hybrid Electric Vehicle
  • Hybrid Electric Vehicle
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View 

5. ELECTRIC VEHICLE BATTERY MARKET BY BATTERY TYPE

5.1. Introduction

5.2. Lithium Ion

5.3. Aluminum Ion

5.4. Hybrid Nickel Metal

5.5. Others

6. ELECTRIC VEHICLE BATTERY MARKET BY VEHICLE TYPE

6.1. Introduction

6.2. Battery Electric Vehicle

6.3. Plug-In Hybrid Electric Vehicle

6.4. Hybrid Electric Vehicle

7. ELECTRIC VEHICLE BATTERY MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. United Kingdom

7.4.2. Germany

7.4.3. France

7.4.4. Spain

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. South Korea

7.6.4. India

7.6.5. Australia

7.6.6. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Contemporary Amperex Technology Co., Limited

9.2. LG Energy Solution

9.3. BYD Company Limited

9.4. Panasonic

9.5. Samsung SDI Co. Ltd

9.6. CALB

9.7. Sunwoda Electric Vehicle Battery Co. Ltd

9.8. QuantumScape Corporation

Contemporary Amperex Technology Co., Limited

LG Energy Solution

BYD Company Limited

Panasonic

Samsung SDI Co. Ltd

CALB

Sunwoda Electric Vehicle Battery Co. Ltd

QuantumScape Corporation