Electric Vehicle (EV) Batteries Global Market Report 2024

The electric vehicle (ev) batteries market size has grown strongly in recent years. It will grow from $27.24 billion in 2023 to $29.17 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth observed in the historical period can be ascribed to the decreased cost of electric vehicle batteries, the expansion of emerging markets, an increase in domestic manufacturing, and a surge in disposable income.

The electric vehicle (ev) batteries market size is expected to see strong growth in the next few years. It will grow to $38.04 billion in 2028 at a compound annual growth rate (CAGR) of 6.9%. The anticipated growth in the forecast period can be attributed to the rise in fuel prices, a heightened demand for electric vehicles, urbanization, and increased investments by automotive OEMs. Noteworthy trends expected in the forecast period encompass the adoption of vehicle-to-grid technology, the widespread use of lithium-ion batteries, collaborations and partnerships, and a surge in investments in electric vehicle (EV) batteries.

Advancements in electric vehicle (EV) batteries and associated technologies are garnering increased interest from individuals, fostering the growth of EV batteries. Recent breakthroughs such as lithium-ion batteries, fast charging capabilities, and improved mileage are enhancing the appeal of electric cars to consumers. According to the United States Department of Energy, the average electric car's range has surged from 73 miles to 400 miles in 2021. Furthermore, technological progress is contributing to reduced prices for electronic batteries, with the average cost of a lithium-ion battery reported at $151/kWh in 2022, according to Bloomberg. Consequently, these developments in electronic batteries and associated technologies, which enhance vehicle mileage, are attracting more customers and driving the electric vehicle batteries market.

The increasing demand for automotive lithium-ion (Li-ion) batteries is anticipated to propel the growth of electric vehicle (EV) batteries in the future. Specifically designed for use in electric vehicles (EVs) and hybrid electric vehicles (HEVs), automotive lithium-ion (Li-ion) batteries serve as rechargeable energy storage devices. They play a crucial role in powering the electric motor(s) and operating the vehicle. For example, in March 2023, according to the Energy Information Administration, automotive lithium-ion (Li-ion) battery demand witnessed a 65% increase, reaching 550 gigawatt hours (GWh) compared to 330 GWh in 2021. Thus, the escalating demand for automotive lithium-ion (Li-ion) batteries is propelling the growth of the electric vehicle (EV) battery market.


The adoption of Vehicle to Grid (V2G) technology for charging electric vehicle batteries is poised to gain momentum in the EV batteries market. V2G technology involves a bidirectional charging system where plug-in electric vehicles, such as battery electric vehicles (BEVs), plug-in hybrids (PHEVs), or hydrogen fuel cell electric vehicles (FCEVs), can interact with the power grid. This allows the vehicles' batteries to either supply electricity back to the grid or to homes during peak times, adjusting their charging rate to discharge and charge the battery as needed. An example of this technology in action is the V2G pilot project launched in Turin, Italy, by FCA in collaboration with Engie EPS and Terna in January 2021. Consequently, V2G technology is expected to be a prominent trend in the electric battery market.

Major companies in the electric vehicle (EV) batteries market are strategically innovating products such as Astroinno to gain a competitive edge. Astroinno batteries, a type of lithium-manganese-iron-phosphate (LMFP) battery, boast high energy density and a long cycle life. In May 2023, Gotion High Tech Co., Ltd., a China-based battery manufacturing company, introduced Astroinno, an EV battery with an impressive 1000 km range on a single charge. This battery sets a precedent for developing nickel-cobalt-manganese (NCM)-free batteries, featuring internal insulation materials capable of withstanding temperatures of up to 1200°C and enduring 1500 fast charging cycles in just 18 minutes.

In August 2022, Nikola Corporation, a US-based manufacturer of heavy-duty commercial battery-electric vehicles, fuel-cell electric vehicles, and energy solutions, made a $144 million acquisition of Romeo Power. This strategic move by Nikola aims to achieve substantial operational improvements and cost savings in battery pack production. The integration of Romeo Power's battery and battery management system (BMS) engineering expertise is expected to accelerate product development and enhance performance for Nikola customers. Romeo Power is a US-based battery manufacturer specializing in EV vehicles.

Major companies operating in the electric vehicle (ev) batteries market report are 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, CATL, BMW, Groupe Renault, Cobham, Varta , SAFT, AKOM, InoBat Auto , Ligier Group, Polaris Industries, Skoda Auto, Proterra, BMZ Inc., Microvast, Romeo Power, Quantumscape Corporation, Horwin, Smart Modular Technologies, IntelBras, Tecsys, 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.

Asia-Pacific was the largest region in the electric vehicle batteries market in 2023. 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. The countries covered in the electric vehicle (ev) batteries market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The primary types of batteries employed in electric vehicles include lithium-ion, lead-acid, nickel-metal hydride, sodium-ion, and others. Lithium-ion batteries, chosen for their enhanced safety and stability during movement compared to liquid li-ion batteries, are prominently utilized in electric vehicles. These batteries cater to two vehicle categories, namely passenger and commercial vehicles, and are available in two propulsion types, battery electric vehicles and plug-in hybrid electric vehicles.

The electric vehicle batteries market research report is one of a series of new reports that provides electric vehicle batteries market statistics, including electric vehicle batteries industry global market size, regional shares, competitors with an electric vehicle batteries market share, detailed electric vehicle batteries market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle batteries industry. These electric vehicle batteries market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric vehicle batteries market consists of sales of lithium-ion batteries, lead-acid batteries, nickel-metal hydride batteries, sodium-ion batteries, and other electric vehicle (EV) batteries. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.