Lithium-Ion (Li-Ion) Market Report 2026

The lithium-ion (li-ion) market size has grown rapidly in recent years. It will grow from $79.49 billion in 2025 to $87.6 billion in 2026 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to high demand for consumer electronics, growth of portable devices, improvements in battery energy density, government incentives for electric mobility, advancements in lithium extraction techniques.

The lithium-ion (li-ion) market size is expected to see rapid growth in the next few years. It will grow to $133.35 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to rising electric vehicle adoption, demand for grid energy storage, development of high-performance cathode materials, innovations in battery management systems, increased focus on sustainability & recycling. Major trends in the forecast period include solid-state battery development, fast charging technology, battery recycling & second life solutions, thermal management systems, advanced electrolyte formulations.

The growing adoption of electric vehicles (EVs) is expected to serve as a major driver for the expansion of the lithium-ion batteries market in the coming years. Electric vehicles rely on battery-powered systems rather than traditional internal combustion engines. Lithium-ion batteries have become a preferred option for EVs due to their high energy density, long cycle life, and ability to deliver the necessary power for extended driving ranges. For example, in November 2023, according to the U.S. Energy Information Administration, a US-based government agency, the share of battery-electric vehicles (BEVs) in new light-duty vehicle sales reached 17.7% in the third quarter of 2023, with BEVs accounting for 16% of total new vehicle sales so far that year, up from 12.5% in 2022. Therefore, the increasing adoption of electric vehicles is a key factor driving the growth of the lithium-ion batteries market.

Leading companies in the lithium-ion (Li-ion) batteries market are focusing on developing advanced solutions, such as zero-degradation energy storage systems, to enhance battery longevity, maintain consistent power stability, and reduce maintenance costs. Zero-degradation refers to a battery system’s ability to preserve its energy storage capacity and power output without deterioration over a specified period. For example, in April 2024, Contemporary Amperex Technology Co., Limited (CATL), a China-based battery manufacturer, launched the TENER system, which features biomimetic solid electrolyte interphase (SEI) and self-assembled electrolyte technologies that enable zero degradation of both power and capacity during the first five years of operation. The system provides a 6.25 MWh capacity within a 20-foot container and achieves an energy density of approximately 430 Wh/L, reducing the overall station footprint by about 20% while improving unit-area energy density by around 30%. Additionally, it includes a dedicated end-to-end quality management system and AI-powered life-cycle monitoring, achieving a cell failure rate at the parts-per-billion level, significantly lowering operating costs and enhancing overall investment returns (IRR).

In May 2025, Himadri Speciality Chemical, an India-based provider of advanced lithium-ion battery materials, including LFP cathode and anode active materials, acquired a 16.24% stake in International Battery Company, Inc. for USD 4.43 million. This acquisition allows Himadri to gain strategic access to IBC’s manufacturing infrastructure and rapidly expanding global customer base, enabling commercial deployment of its new energy materials and strengthening its position in the international battery materials market. International Battery Company, Inc. is a US-based manufacturer of lithium-ion (Li-ion) battery cells.

Major companies operating in the lithium-ion (li-ion) market are A123 Systems Inc., Automotive Energy Supply Corporation (AESC), LG Chem Ltd., Panasonic Corporation, Samsung SDI Co. Ltd., Toshiba Corporation, BYD Company Limited, Contemporary Amperex Technology Co. Ltd. (CATL), Amperex Technology Limited (ATL), BAK Group (Shenzhen BAK Battery Co. Ltd.), Blue Energy Co. Ltd., Aviation Industry Corporation of China (AVIC), CBAK Energy Technology Co. Ltd., GS Yuasa Corporation, Hefei Guoxuan High-tech Power Energy Co. Ltd., Hitachi Chemical Co. Ltd., Microvast Inc., Saft Batteries, Amperes Technology Co. Ltd., Tianjin Lishen Battery Joint-Stock Co. Ltd., Tianneng Power International Limited, LG Energy Solution, SK Innovation Co. Ltd., Valence Technology Inc., EnerDel Inc., Lithium Werks B.V., Electrovaya Inc., Kokam Co. Ltd., Envision AESC Group Ltd., Farasis Energy Inc., Lishen Battery, Northvolt AB, VARTA AG, BMZ GmbH, Leclanché SA, EVE Energy Co. Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have influenced the lithium-ion battery market by affecting the import and export of raw materials such as lithium, cobalt, and nickel, leading to increased production costs. The automotive and consumer electronics segments are most impacted, especially in regions like North America and Europe that rely on imported components. Some positive effects include encouraging local manufacturing and boosting domestic supply chains, which can accelerate innovation and reduce dependency on foreign suppliers.

The lithium-ion (Li-ion) batteries market research report is one of a series of new reports that provides lithium-ion (Li-ion) batteries market statistics, including lithium-ion (Li-ion) batteries industry global market size, regional shares, competitors with a lithium-ion (Li-ion) batteries market share, detailed lithium-ion (Li-ion) batteries market segments, market trends and opportunities, and any further data you may need to thrive in the lithium-ion (Li-ion) batteries industry. This lithium-ion (Li-ion) 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.

A lithium-ion battery, often abbreviated as Li-ion battery, is a rechargeable battery known for its high energy density, and it employs lithium ions as a primary component of its electrolyte. These batteries are widely used in various applications, including electric vehicles, mobile phones, laptops, power backups, and other electronic devices.

The main types of lithium-ion batteries include Lithium Nickel Manganese Cobalt (LI-NMC), Lithium Iron Phosphate (LFP), Lithium Cobalt Oxide (LCO), Lithium Titanate Oxide (LTO), Lithium Manganese Oxide (LMO), and Lithium Nickel Cobalt Aluminum Oxide (NCA). For example, the lithium iron phosphate (LFP) battery is a specific type of lithium-ion battery with a cathode made of lithium iron phosphate and an anode made of graphitic carbon with a metallic backing. These batteries consist of various components, such as cathodes, anodes, separators, electrolytes, aluminum foil, copper foil, and others. They are available in different power capacities, including 0 to 3000 mAh, 3000 to 10000 mAh, 10000 to 60000 mAh, and above 60000 mAh. Lithium-ion batteries are used across a wide range of industries, including consumer electronics, automotive, marine, aerospace and defense, medical, industrial, power, and other sectors, reflecting the versatility and applicability of different lithium-ion battery chemistries.Asia-Pacific was the largest region in the lithium-ion (Li-ion) batteries market in 2025. North America was the second-largest region in the lithium-ion (Li-ion) batteries market. The regions covered in the lithium-ion (li-ion) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the lithium-ion (li-ion) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The lithium-ion (Li-ion) batteries market consists of sales of lithium nickel magnesium cobalt (LI-NMC), lithium ferro phosphate (LFP), lithium cobalt oxide (LCO), lithium titanate oxide (LTO), lithium manganese oxide (LMO), and other lithium-ion (Li-ion) 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.

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