Comprehensive Snapshot of Electric Vehicle Battery Market Research Report, Including Regional and Country Analysis in Brief.
Industry: Automotive & Transportation
Published Date: May-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 197
Report ID: PMRREP35274
According to the Persistence Market Research report, the global electric vehicle (EV) battery market is experiencing substantial growth, driven by the rapid expansion of the electric vehicle sector. In 2025, the market was valued at approximately US$ 92.7 billion and projected to reach US$ 181.8 billion with a CAGR of 10.1% by 2032. This growth is closely tied to the surge in EV sales. In 2024, nearly 17 million electric cars were sold globally, marking a 22% increase from 2023. The International Energy Agency (IEA) suggests that in 2025, electric vehicles could account for up to 49% of new car sales in China, 31% in Europe, and over 18% in the United States.
Key Industry Highlights:
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Global Market Attribute |
Key Insights |
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Electric Vehicle Battery Market Size (2025E) |
US$ 92.7 Bn |
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Projected Market Value (2032F) |
US$ 181.8 Bn |
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Global Market Growth Rate (CAGR 2025 to 2032) |
10.2% |
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Historical Market Growth Rate (CAGR 2019 to 2024) |
9.4% |
The global EV battery market is experiencing significant growth, driven by the increasing adoption of electric vehicles worldwide. In the U.S., EV sales reached nearly 3 million units in the first quarter of 2025, marking a record high. Major automakers such as Porsche, Toyota, and Honda reported substantial increases in their EV sales, with Porsche's EV sales rising by 250% year-over-year. It is attributed to various factors, including government incentives, stricter emission regulations, and growing environmental awareness among consumers. Governments across the globe are implementing policies to reduce carbon emissions which encourage the adoption of electric vehicles. For instance, the European Union aims for all new city buses to be zero-emission by 2035. The increasing demand for EVs directly impacts the battery market, as batteries are a critical component of electric vehicles.
The EV battery market faces significant challenges due to supply chain vulnerabilities, particularly the reliance on specific countries for critical raw materials. China dominates the mining, refining, and production of key materials such as lithium, graphite, and rare earth metals, which are essential for battery manufacturing. Recent export controls by China on critical minerals such as graphite have raised concerns about potential disruptions in the global supply chain.
Despite substantial investments by countries like the U.S. to establish domestic EV supply chains, significant gaps remain, especially in mining and refining capacities. This dependency on a single country for essential materials poses risks of supply shortages and price volatility, potentially hindering the growth of the EV battery market.
To mitigate these risks, companies are exploring alternative sources and investing in domestic mining and refining projects. However, developing these capabilities takes time and substantial investment, making supply chain vulnerabilities a pressing concern for the EV battery industry.
Advancements in battery technology are rapidly increasing the popularity of electric vehicles (EVs) worldwide by addressing key challenges such as long charging times, limited driving ranges, and high costs. In 2025, Nyobolt raised $30 million to produce ultra-fast-charging batteries that charge to 80% in under five minutes which compared with conventional batteries, that take 30 to 45 minutes. Toyota plans to launch EVs with solid-state batteries by 2027, offering up to 1,200 kilometers (750 miles) of range on a single charge and full charging in just 10 minutes. These batteries are safer and more energy-dense than traditional lithium-ion ones, eliminating liquid electrolytes that pose fire risks.
Companies such as QuantumScape and CATL are also investing in solid-state technology and new battery chemistries. Collaborations between companies such as LG Energy Solution and global automakers aim to develop high-performance battery packs tailored for various EV types.
Lithium-ion batteries are set to dominate the global electric vehicle (EV) battery market, accounting for over 85% of total installations in 2025. These batteries are preferred for their high energy density, long lifecycle, and fast-charging capabilities. Within this category, LFP (Lithium Ferrous Phosphate) batteries are gaining strong momentum for their low cost, safety, and thermal stability, making them popular in budget and mid-range EVs, especially in markets like China and India.
Solid-state batteries are expected to be the fastest-growing battery type, driven by their ability to offer longer range, greater safety, and faster charging times. Unlike lithium-ion batteries, solid-state variants use a solid electrolyte, reducing the risk of fire and allowing more compact battery packs.
Battery Electric Vehicles (BEVs) are the largest segment in the global EV battery market, accounting for over 70% of total EV battery demand in 2025. BEVs run fully on batteries without any fuel engine and are powered by high-capacity battery packs that offer longer driving ranges. Leading companies like Tesla, BYD, Hyundai, and Volkswagen are launching more BEV models across various price ranges.
Fuel Cell Electric Vehicles (FCEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) are expected to grow quickly between 2025 and 2032. FCEVs, which run on hydrogen fuel cells, offer ultra-long range and fast refueling, making them ideal for heavy-duty vehicles and trucks. Countries such as Japan, South Korea, and Germany are investing in hydrogen refueling stations to support this growth.
Passenger EVs have consistently led the global EV battery market, driven by strong demand in regions like China, Europe, and North America. According to the International Energy Agency (IEA), electric car sales exceeded 14 million units in 2023, representing a 35% year-on-year growth. This surge is attributed to aggressive decarbonization goals, government incentives, and major automakers committing to EV-only production lines. Major automakers, including Tesla, BMW, and Volkswagen, contributed to this growth by increasing their EV offerings.
Electric two-wheelers witnessed rapid adoption in 2025, especially in Asia-Pacific markets such as India, China, Vietnam, and Indonesia. Factors contributing to this surge include urban mobility needs, government incentives, and the affordability of 2Ws compared to other vehicle types. Although individual battery sizes in 2Ws are smaller (1–3 kWh), the high volume of sales significantly boosted this segment's growth rate.
North America accounts for 20% of the global EV battery market in 2025. Factors such as declining lithium-ion battery prices, rising EV adoption, robust government initiatives and increasing consumer demand for sustainable transportation are bolstering the sales of electric vehicles batteries in the region. The U.S. remained at the forefront, propelled by the Inflation Reduction Act (IRA), which offers generous tax incentives for battery production and EV purchases. The country is contributing over 80% of the market share due to its advanced automotive industry and significant investments in battery manufacturing. Canada is emerging as a key player, focusing on EV battery production to support its clean energy goals.
Europe accounts for roughly 25% of the global EV battery market in 2025, propelled by stringent emission regulations and a shift toward localized battery production. The passenger car segment dominates, driven by consumer demand for Battery Electric Vehicles (BEVs). Germany leads Europe’s EV battery market, driven by its robust automotive sector and investments in battery innovation. Norway, with nearly 90% of new car sales being electric in 2023, is a pioneer in EV adoption. France is scaling up battery production through gigafactories to support its EV goals. Europe also ramped up investment in solid-state battery R&D and began scaling up battery recycling hubs, particularly in the Nordics.
Asia Pacific dominates the global EV battery market with a 48% share in 2025, led by China, Japan, and India. This dominance is driven by rapid urbanization, a strong automotive sector, and economies of scale in battery production. The region’s abundant lithium and cobalt resources reduce costs, while companies like CATL and BYD lead innovation. The passenger car segment, particularly BEVs, holds the largest share, with electric buses also gaining traction. Supply chain constraints pose challenges, but recycling and alternative battery chemistries address sustainability concerns.
China accounts for over 50% of Asia Pacific’s market due to its massive EV production and battery manufacturing capabilities. China alone accounted for more than 70% of global lithium-ion battery manufacturing, with giants like CATL, BYD, and CALB leading the charge. The country’s massive EV sales, 12.87 million units in 2024, created enormous domestic battery demand. India’s EV battery market surged on the back of rising two-wheeler and three-wheeler electrification. The government’s FAME II scheme and PLI (Production Linked Incentive) programs attracted investments in localized battery production and assembly.
The electric vehicle (EV) battery market is undergoing rapid transformation with technological innovations, strategic partnerships, and expanding production capabilities. The global EV battery market remains fragmented, despite the dominance of a few key manufacturers like CATL, LG Energy Solution, and Panasonic. These companies currently account for the massive market share due to their large-scale manufacturing capabilities, innovative technologies, and well-established supply chains.
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Attributes |
Details |
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Forecast Period |
2025 to 2032 |
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Historical Data Available for |
2019 to 2024 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Battery Type
By Propulsion Type
By Vehicle Type
By Region
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The global energy storage system market is projected to be valued at US$ 92.7 Bn in 2025.
Increasing electric vehicle sales boost battery demand across the globe.
The energy storage system market is poised to witness a CAGR of 10.1% from 2025 to 2032.
Innovations in battery technologies will present significant growth opportunities.
Major players in the electric vehicle battery market include Contemporary Amperex Technology Co., Ltd. (CATL), LG Energy Solution, Samsung SDI Co., Ltd., BYD Company Limited, Panasonic Corporation, and others.
