How Has The Electric Vehicle (EV) Batteries Market Size Evolved In Recent Years?
The electric vehicle (ev) batteries market has seen considerable growth due to a variety of factors.
• The market size for batteries in electric vehicles (EVs) has seen a substantial surge in recent years. Forecasts suggest an increase from $66.43 billion in 2024 to a staggering $87.78 billion in 2025, indicating a compound annual growth rate (CAGR) of 32.1%.
Factors such as the reduction in the price of EV batteries, growth in emerging markets, an increase in local manufacturing, and an uptick in disposable income have significantly contributed to this expansion during the historical period.
What are the Market Size and Expected Growth Rates for the Electric Vehicle (EV) Batteries Market?
The electric vehicle (ev) batteries market is expected to maintain its strong growth trajectory in upcoming years.
• Predictions suggest a significant expansion in the electric vehicle (EV) batteries market over the coming years. It's anticipated to compound to a value of $197.32 billion by 2029, boasting a compound annual growth rate (CAGR) of 22.4%.
Factors such as rising fuel costs, burgeoning demand for electric cars, urbanization, and heightened investment from automotive oems are expected to drive this growth during the forecast period. Key trends influencing the period's forecast include the advent of vehicle-to-grid technology, preferred use of lithium-ion batteries, strategic partnerships and collaborations, as well as escalated investment in powering electric vehicle (EV) batteries.
What Are the Critical Driver Fuelling the Electric Vehicle (EV) Batteries Market's Growth?
The progress in electric vehicle (EV) battery technology and related fields has sparked interest among potential customers, thus promoting the expansion of the EV battery market. Innovations such as lithium-ion batteries, rapid charging, and improved mileage have made electric cars more user-friendly. For instance, as reported by the US-based government agency, the Office of Energy Efficiency and Renewable Energy, in January 2022, while the longest range for any EV in the 2021 model year was 405 miles, some EVs for the 2022 model year have already surpassed a range of 500 miles. Furthermore, these technological progressions have led to a decrease in electronic battery costs. As stated in the Bloomberg report, the average price of a lithium-ion battery stood at $151/kWh in 2022. Consequently, these advancements in electronic battery and related technologies, by improving vehicle mileage, attract more purchasers and thus stimulate the growth of the electric vehicle battery market.
What Are The Key Segments Within The Global Electric Vehicle (EV) Batteries Market?
The electric vehicle (EV) batteries market covered in this report is segmented –
1) By Battery Type: Lithium-Ion, Lead-Acid, Nickel-Metal Hydride, Others
2) By Vehicle Type: Passenger Vehicles, Commercial Vehicles
3) By Propulsion: Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicles, Fuel Cell Electric Vehicles.
Subsegments:
1) By Lithium-Ion Batteries: Lithium Iron Phosphate (LiFePO4), Lithium Nickel Manganese Cobalt (NMC), Lithium Nickel Cobalt Aluminum Oxide (NCA), Lithium Manganese Oxide (LMO), Other Lithium-Ion Variants
2) By Lead-Acid Batteries: Flooded Lead-Acid (FLA), Absorbed Glass Mat (AGM), Gel Lead-Acid
3) By Nickel-Metal Hydride Batteries: Standard Nickel-Metal Hydride, Advanced Nickel-Metal Hydride
4) By Others: Solid-State Batteries, Flow Batteries, Other Emerging Battery Technologies
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How Are New Trends Impacting The Size Of The Electric Vehicle (EV) Batteries Market?
Leading firms in the electric vehicle (EV) batteries market are innovating and creating technologically sophisticated products such as lithium iron phosphate (LiFePO4) batteries. These batteries are renowned for their safety, heat stability, extensive usage life, and substantial power output, making them excellent for usage in electric cars, renewable energy storage, and handheld devices. An example of this is the Aegis Short Blade Battery unveiled in June 2024 by China's auto manufacturer, Geely. The battery comes with an energy density of 192 Wh/kg and a cycle life of 3,500 cycles, allowing it to power cars for an estimated 1 million kilometers without drastically affecting range. With a lifespan of up to 50 years, this battery notably augments the durability and residual value of pre-owned vehicles. It effectively tackles the problem of high internal resistance encountered in numerous long blade batteries by using long, skinny carbon nanotubes to form a rapid route for ion transfer, along with additives that enhance film permeability for a more effortless movement of lithium ion between the electrodes. As a result, the Aegis Short Blade Battery showcases improved fast-charging capabilities, with an average charging duration of merely 17 minutes and 4 seconds to reach 80% capacity at a 2.45 C charging rate. This is in stark contrast to the 26-minute average and 1.61 C rate typically seen in other similar capacity long blade batteries.
Who Are the Key Players in the Electric Vehicle (EV) Batteries Market?
Major companies operating in the electric vehicle (EV) batteries market include:
• LG Energy Solution Ltd
• Samsung SDI Co. Ltd
• SK Innovation Co. Ltd
• Panasonic Corporation
• Contemporary Amperex Technology Co. Ltd
• Clarios
• BYD Co. Ltd
• Narada Power Source Co. Ltd
• GS Yuasa Corporation
• Tianneng Power International Ltd
• SVOLT Energy Technology Co. Ltd
• EVTronic
• Britishvolt
• Aceleron
• Williams Advanced Engineering
• Zenobe
• Northvolt
• Verkor
• Italvolt
• Fortum
• ElecSys
• Volkswagen
• BMW
• Groupe Renault
• Cobham
• Varta
• SAFT
• AKOM
• InoBat Auto
• Ligier Group
• Polaris Industries
• Skoda Auto
• Proterra
• BMZ Inc
• Microvast
• Romeo Power
• Quantumscape Corporation
• Horwin
• Byvin
• HDK Electric Vehicles
• Ingersoll Rand Inc
• Shandong Shifeng (Group)
• Speedway Electric
• Eleksa EV
• Melex Electrovehicles
• GridCars
• Mazibuko Motor Company
• El Nasr Automotive Manufacturing Company
• Jet Motors
What are the Regional Insights into the Electric Vehicle (EV) Batteries Market?
Asia-Pacific was the largest region in the electric vehicle batteries market in 2024. Western Europe was the second-largest region in the global electric vehicle batteries market share. The regions covered in the electric vehicle (ev) batteries market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
