Lithium-Ion Battery Market Projected to Reach US$ 864.91 Billion by 2035, Reflecting Structural Shifts in Global Energy Storage Demand Says Astute Analytica

Solid-state advancements and circular recycling ecosystems will drive future growth, projected to double energy density by 2030. These innovations will slash material costs by 30%, securing supply chains and unlocking affordable mass-market electrification globally.

Chicago, Jan. 16, 2026 (GLOBE NEWSWIRE) — The global lithium-ion battery market was valued at US$ 124.39 billion in 2025 and is projected to reach US$ 864.91 billion by 2035 at a CAGR of 21.40% during the forecast period 2026–2035. 

As per Astute Analytica’s recent report, lithium-ion battery market players are aggressively shifting focus from pure capacity expansion to vertical integration and cost optimization to combat margin compression. In 2025, automakers like Ford and Volkswagen are prioritizing LFP adoption, projecting this chemistry will account for 40% of their entry-level fleets to target mass-market affordability. To insulate against raw material volatility, OEMs have bypassed traditional suppliers. General Motors and Tesla have directly committed over $5 billion into upstream lithium and nickel mining rights. Technology strategies are now centered on fast-charging metrics rather than just range, with CATL reporting that 50% of its new shipments now feature 4C ultra-fast charging capabilities.

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In addition to this, cell manufacturers are diversifying to hedge against automotive risks; LG Energy Solution strategically reallocated 20% of its gigafactory lines specifically for Energy Storage Systems (ESS). Manufacturing efficiency remains the final battleground, with Panasonic confirming it hit a 95% yield rate for 4680 cells, finally making large-format mass production commercially viable.

Key Market Highlights

• By Type, Li-NMC batteries hold a major position in the lithium-ion battery market with a 36% revenue share.
• By power capacity, around the 3,000-10,000 mAh power capacity is leading the market with more than 57% of revenue .
• By application,  automotive contribute more than 61% global lithium-ion battery consumption.
• Asia Pacific is projected to continue dominating the lithium-ion battery market with over 44% market share.

By Type, Li-NMC Retains 36% Market Share Through High-Manganese Low-Cobalt Chemistry Evolution

The Li-NMC segment sustains its value leadership in the lithium-ion battery market by successfully pivoting toward “manganese-rich” architectures in 2025, effectively neutralizing the cost advantages previously held by LFP. Major manufacturers like LG Energy Solution and Samsung SDI have commercialized mid-nickel, high-voltage chemistries (often labeled as NMX or High-Mn) that operate at higher voltages (4.4V+) to deliver premium energy density while reducing expensive cobalt content to below 5%. This technical evolution is critical for the North American market, where automakers like Stellantis and BMW are prioritizing these cells to meet USMCA local sourcing requirements that exclude Chinese-dominated LFP supply chains.

Moreover, data from the US Department of Energy in 2025 highlights that NMC chemistries remain the exclusive choice for the growing “600-mile club” of electric trucks and SUVs, ensuring this chemistry captures the highest revenue per kWh deployed in the lucrative western automotive sector.

By Capacity, 3,000 to 10,000 mAh Segment Dominates Lithium-Ion Battery Market with 57% Share Via 46-Series Cell Standardization

This capacity segment secures over 57% of the market share, driven primarily by the industrial breakthrough of the “46-series” (4680 and 4695) cylindrical cells which achieved stable mass production yields in early 2025. Unlike smaller commodity cells, this specific 3,000–10,000 mAh bracket represents the new “golden ratio” for thermal efficiency and manufacturing speed. Tesla’s expansion at Giga Texas and Panasonic’s Kansas facility have standardized these larger tabless cells, which offer five times the energy capacity of traditional 2170 units, drastically reducing the bill of materials for battery packs.

Beyond automotive, Techtronic Industries (TTI), the parent company of Milwaukee Tool and Ryobi, reported in their 2025 strategic update that their high-demand industrial cordless equipment is exclusively transitioning to this high-capacity cell standard to eliminate corded power on construction sites. This dual-vertical demand from heavy industry and mobility cements the segment’s massive revenue dominance.

By Application, Automotive Sector Claims 61% Share Fueled by 800V Architecture Mass Adoption

The automotive segment accounts for over 61% of the lithium-ion battery market, a dominance now propelled by the industry-wide shift to 800-volt architectures which necessitates larger, high-performance battery packs. In 2025, the market moved beyond early adoption, with mainstream platforms from Hyundai-Kia (E-GMP) and Volkswagen Group (PPE) making 800V the standard to enable 15-minute ultra-fast charging. This architectural shift forces a higher average kWh content per vehicle to sustain high-voltage charging curves without degradation.

The electrification of heavy-duty transport has also added a new layer of volume; Tesla’s semi-truck program and Volvo Trucks’ 2025 delivery reports indicate that a single Class-8 electric hauler consumes the battery equivalent of 10 to 12 passenger cars (approx. 800-900 kWh). This explosion in “per-unit” battery volume ensures that automotive demand completely eclipses consumer electronics and stationary storage in global revenue terms.

Rising Electric Vehicle Fleets Fuel Unprecedented Component Demand Across Global Regions

Surging vehicle adoption rates are creating a structural expansion within the Lithium-ion battery market as projected sales volumes climb. Benchmark Mineral Intelligence forecasts global EV sales will reach 20.7 million units in 2025, building on the 2024 baseline of 17.8 million units reported by EV Volumes. China continues to anchor this growth, with the market expected to absorb 12.9 million EV units in 2025 alone. European markets are also accelerating, with sales expected to reach 4.3 million units. North America trails slightly but remains robust, forecasting 1.8 million electric vehicles units sold in 2025. BYD exemplifies this global reach, as their EV exports are projected to exceed 1 million units in 2025.

Product availability is simultaneously widening the addressable audience for the Lithium-ion battery market globally. The total global stock of electric cars reached 58 million vehicles at the end of 2024. Consumers in 2024 had access to 785 distinct electric car models, offering unprecedented choice. Virta projects that by 2026, the number of available EV models will surpass 1,000. Higher model diversity directly correlates with increased fleet size. Consequently, these rising adoption curves ensure sustained demand momentum for battery manufacturers.

Terawatt Hour Milestones Signal Structural Shift In Global Energy Storage Requirements

Energy capacity requirements are scaling rapidly, pushing the Lithium-ion battery market into a new era of terawatt-hour volume. Benchmark Mineral Intelligence forecasts total global demand for Li-ion batteries will reach 1.59 TWh (1,590 GWh) in 2025. The industry successfully crossed a pivotal threshold when global battery demand exceeded 1 TWh for the first time in 2024. Electric vehicles remain the primary catalyst, as batteries specifically for EVs accounted for 950 GWh of demand in 2024. Emerging segments like electric trucks accounted for nearly 3% of global EV battery demand in 2024, signaling future diversification.

Forecasting models suggest substantial upside potential for the Lithium-ion battery market depending on policy implementation. Yano Research Institute projects that under aggressive scenarios, the automotive market alone could reach 1,248 GWh in 2025. Even conservative estimates place automotive demand at 989 GWh in 2025. Beyond transport, the Battery Energy Storage System (BESS) sector is growing faster than EVs, recording a 51% year-on-year increase in 2025. Such diverse consumption channels insulate the industry from sector-specific slowdowns.

Aggressive Capital Injection Expands Manufacturing Output To Secure Future Supply Chains

Investment capital is flowing heavily into infrastructure to support the expanding Lithium-ion battery market and its supply lines. From 2000 through September 2024, private companies announced USD 208.8 billion in US EV and battery manufacturing investments. By 2024, USD 223 billion had been specifically allocated to US EV manufacturing facilities. The pace is frantic, as companies invested approximately USD 11 billion per quarter in the US battery sector during 2024. Consequently, the global battery manufacturing equipment market was valued at USD 21 billion in 2024.

Production capacity is skyrocketing to match these financial commitments. Total global Li-ion cell manufacturing capacity passed 3 TWh in 2024. The US manufacturing capacity surpassed 200 GWh in 2024, reducing import reliance. China maintains its lead with a pipeline capacity of 6,268 GWh by 2030 and dominance in next-gen tech, controlling over 80% of solid-state and 96% of sodium-ion capacity in 2025. In Europe, Germany’s production capacity is estimated to reach 164 GWh by 2025, while LG Energy Solution’s Polish plant targets 100 GWh in 2025. These expansions ensure the Lithium-ion battery market can meet future orders.

Grid Reliability Needs Accelerate Deployment Of Utility Scale Battery Storage Systems

Stationary energy storage is rapidly becoming a dominant revenue stream within the Lithium-ion battery market landscape. The US Energy Information Administration (EIA) expects 18.2 GW of utility-scale battery storage to be added to the grid in 2025. US power providers demonstrated this appetite by adding 10.3 GW of new battery storage capacity in 2024. Development pipelines are robust, with 18.7 GW of battery capacity under active construction in the US as of late 2024. These projects are essential for stabilizing renewable energy grids.

European deployment figures reflect a similar urgency to bolster energy security. The UK completed 4 GWh of battery storage capacity in 2025, bringing its total operational battery capacity to 12.9 GWh. Germany added 6.57 GWh of stationary battery storage in 2025, driven by both utility and consumer needs. The residential segment in Germany contributed 4.19 GWh of new capacity in 2025. Such decentralized adoption patterns deepen the integration of the Lithium-ion battery market into modern energy infrastructure.

Falling Pack Costs Below Hundred Dollars Unlock Mass Market Electrification Potentials

Declining unit costs are significantly improving the unit economics across the Lithium-ion battery market value chain. BloombergNEF reports the average Li-ion battery pack price dropped to USD 108/kWh in 2025. Crucially, battery packs specifically for battery electric vehicles (BEVs) averaged USD 99/kWh in 2025, breaking the barrier required for cost parity with internal combustion engines. Packs for stationary storage were the cheapest segment, falling to USD 70/kWh in 2025. China leads this trend, where the average battery pack price was USD 84/kWh in 2025.

Component pricing further supports this downward trajectory. The average price of Lithium Iron Phosphate (LFP) cells fell below USD 60/kWh in 2024. Raw material inputs remain affordable, as analysts project battery-grade lithium carbonate prices to range between USD 9,000 and USD 12,000 per tonne in 2025. European cobalt metal prices are forecast to average USD 10.98 per lb in 2025. These favorable economics are catalyzing broader adoption of Lithium-ion battery market technologies.

Strategic Mineral Surplus Creates Favorable Pricing Environment For Battery Cell Manufacturers

Upstream mining activities have generated necessary surpluses to stabilize the Lithium-ion battery market supply chain. Global lithium demand is expected to reach 1.46 million tons (LCE) in 2025. Miners have responded effectively, as global lithium supply is forecast to reach 1.58 million tons (LCE) in 2025. This results in a market surplus of approximately 115,000 tons LCE in 2025. Similarly, global primary nickel production is projected to reach 3.735 million tons in 2025, creating a surplus of 198,000 tons.

Long-term risks persist despite current abundance. Global cobalt demand is projected to reach 292,300 tons in 2025, but forecasts suggest a supply deficit of 10,700 tons could emerge by 2026. Graphite availability is another concern, as the battery sector will require 1.7 million tons of additional natural graphite annually by 2030. Stakeholders in the Lithium-ion battery market must navigate these shifting balances between short-term surpluses and potential medium-term deficits.

Asian Conglomerates Consolidate Global Dominance Through Massive Scale And Vertical Integration

A handful of major manufacturers dictate the competitive tempo of the Lithium-ion battery market today. CATL led the sector with an installed capacity of 339.3 GWh in 2024, dwarfing most rivals. BYD ranked second with 153.7 GWh of installed capacity in 2024, benefiting from its dual role as a carmaker and battery producer. LG Energy Solution secured third place with 96.3 GWh installed in 2024, acting as a key supplier for Western OEMs. These top players leverage immense economies of scale.

Challengers are aggressively expanding to secure their positions. CALB followed with 39.4 GWh of installed capacity, while SK On installed 39 GWh in 2024. Panasonic recorded 35.1 GWh of installed capacity in 2024, continuing its legacy partnerships. Samsung SDI installed 29.6 GWh in 2024, rounding out the top tier. Collectively, these firms drive the innovation and production volume that defines the modern Lithium-ion battery market.

Range Improvements And Faster Charging Speeds Eliminate Consumer Adoption Barriers Effectively

Technological advancements are rapidly enhancing the appeal of products within the Lithium-ion battery market. The median range for Model Year 2024 EVs in the US reached a record 283 miles. Leading the pack, the 2025 Lucid Air Grand Touring offers an EPA-estimated range of 512 miles. Energy density improvements underpin these gains, with typical commercial cells at 350 Wh/kg in 2025 and solid-state prototypes targeting 500-700 Wh/kg. Such metrics directly address consumer anxiety regarding distance capabilities.

Charging speed innovations are equally critical for market penetration. The 2024 Chevy Silverado EV demonstrated a peak charging rate of 315 kW in tests. Drivers can now charge a Chevy Silverado EV from 10% to 90% in just 58 minutes. Standard 60kWh EV batteries can charge from empty to full in roughly 30 minutes at 150kW stations. Infrastructure supports this utility, with US public electric vehicle charging station reaching nearly 200,000 in 2024 and global fast chargers hitting 2 million units. These factors collectively boost the Lithium-ion battery market.

Circular Economy Investments Mitigate Supply Risks Through Expanded Material Recovery Capabilities

Sustainability efforts are creating a secondary supply stream for the Lithium-ion battery market through recycling. The theoretical scrap volume of power batteries in China is expected to reach 470,000 metric tons in 2025. China had 156 companies officially authorized to recycle Lithium-ion batteries in 2024 to handle this influx. Indian recycler Attero targets recycling 15,000 tons of Li-ion batteries in the fiscal year 2024-25. These initiatives ensure valuable metals are retained within the economy.

North American capacity is also ramping up to close the loop. As of 2023/2024, the US had a domestic recycling capacity of 35,500 tons of battery materials. Plans are in place for an additional 76,000 tons of recycling capacity in the US over the next 2-4 years. Developing these capabilities is essential for the long-term stability of the Lithium-ion battery market, reducing reliance on virgin mining and mitigating geopolitical supply risks.

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Global Lithium-ion Battery Market Key Players:

• BYD Company
• LG Chem
• Panasonic Corporation
• Samsung SDI
• BAK Group
• Hitachi Corporation
• Johnson Controls
• Toshiba Corporation
• Raja Groups
• Tata Chemicals
• TDK Electronics AG
• Sony Corporation
• Murata Manufacturing Co., Ltd.
• Amperex Technology Limited
• LITEC Co., Ltd.
• GS Yuasa International Ltd.
• Automotive Energy Supply Corporation
• Other Major Players

Key Market Segmentation:

By Type:

• Lithium Nickel Magnesium Cobalt (LI-NMC)
• Lithium Ferro Phosphate (LFP)
• Lithium Cobalt Oxide (LCO)
• Lithium Titanate Oxide (LTO)
• Lithium Manganese Oxide (LMO)
• Lithium Nickel Cobalt Aluminum Oxide (NCA)

By Power Capacity:

• 0-300 mAH
• 3,000-10,000 mAH
• 10,000-60,000 mAH
• More than 60,000 mAH

By Application:

• Consumer Electronics OEMs
  • Smartphones
  • Laptops
  • UPS Systems
  • Smart Cameras
  • Smart Watches
  • Smart Glasses
  • Smart Textiles
  • Others
• Automotive OEMs
  • Hybrid Electric Vehicles (HEVs)
  • Battery Electric Vehicles (BEVs)
  • Others (Service Stations/Dealers)
• Energy Storage
  • Commercial
  • Industrial
  • Residential
  • Utilities
• Industrial OEMs
  • Military
  • Industrial Equipment
  • Medical
  • Marine
  • Telecommunication
  • Mining
  • Forklifts
  • Others
• Other OEMs
• Aftermarket

By Form/Design:

• Pouch
• Cylindrical
• Elliptical
• Prismatic
• Custom Design

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)
• South America

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About Astute Analytica

Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.

With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.

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For Sales Enquiries: [email protected]
Website: https://www.astuteanalytica.com/ 

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