Battery Materials Market Report 2026

The battery materials market size has grown rapidly in recent years. It will grow from $69.58 billion in 2025 to $76.94 billion in 2026 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to early use of basic cathode and anode materials, reliance on traditional separators, growing demand from portable electronics, increasing usage in early automotive batteries, expansion of industrial battery applications.

The battery materials market size is expected to see rapid growth in the next few years. It will grow to $113.76 billion in 2030 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to rising demand for high-energy battery chemistries, development of advanced solid-state materials, growth in ev battery production, expansion of recyclable and low-impact materials, increasing adoption in large-scale energy storage systems. Major trends in the forecast period include development of sustainable low-impact battery materials, expansion of ev-oriented high-performance material platforms, adoption of intelligent material manufacturing systems, integration of IoT-enabled material tracking technologies, advancement of digitalized battery material optimization.

The growing adoption of electric vehicles is expected to significantly drive the expansion of the battery materials market in the future. Electric vehicles are powered by an electric motor rather than an internal combustion engine, utilizing a substantial traction battery pack. These battery materials are essential for providing high energy density, low self-discharge rates, minimal maintenance, and extended charge cycles for electric vehicles. For example, in March 2024, the International Energy Agency reported that new electric car registrations in the United States reached 1.4 million in 2023, marking a more than 40% increase compared to 2022. Thus, the rising adoption of electric vehicles is fueling the growth of the battery materials market.

Technological advancements have become a major trend in the battery materials market, with companies developing new technologies to maintain their competitive edge. For example, in May 2023, Cabot Corporation, a U.S.-based materials manufacturer, introduced ENTERA Aerogel Particles for thermal barriers in lithium-ion batteries. This innovative material is designed to enhance battery performance by addressing key challenges such as thermal management and safety. The launch of advanced materials like ENTERA aligns with the industry's broader shift towards improved performance and sustainability in battery technologies. Cabot's focus on improving safety and efficiency reflects the growing demand for better lithium-ion battery solutions as electric mobility continues to rise worldwide.

In October 2023, Epsilon Advanced Materials (E-AM), an India-based global battery materials company, acquired Johnson Matthey’s lithium-ion phosphate (LFP) cathode active material technology centre in Moosburg, Germany, for an undisclosed amount. This acquisition marks E-AM’s first global production footprint and establishes a European technology hub, accelerating its strategy to become a leading global producer of synthetic graphite anode and LFP cathode materials. Johnson Matthey is a UK-based manufacturer of battery materials.

Major companies operating in the battery materials market are Asahi Kasei Corporation, BASF SE, Mitsubishi Chemical Holdings Corporation, Sumitomo Corporation, Umicore NV, Albemarle Corporation, Livent Corporation, Nichia Corporation, Toray Industries Inc., POSCO Holdings Inc., Showa Denko KK, Hitachi Chemical Company Limited, China Molybdenum Company Limited, Ganfeng Lithium Co. Ltd., MMC Norilsk Nickel PJSC / Norilsk Nickel, Ningbo Shanshan Company Limited, Saudi Basic Industries Corporation (SABIC), Ensinger Group, DIC Corporation, Celanese Corporation, Johnson Matthey PLC, Lanxess AG, Glencore PLC.

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 affected the battery materials market by raising costs for imported lithium, cobalt, nickel, graphite, and specialty chemical components critical for cathodes, anodes, electrolytes, and separators. Automotive, electronics, and energy storage manufacturers in Asia-Pacific, Europe, and North America face higher production costs and longer procurement timelines due to tariff-driven supply constraints. However, tariffs are promoting regional raw material processing, localized manufacturing of battery material components, and innovation in alternative chemistries, reinforcing long-term supply chain resilience.

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

Battery materials encompass the fundamental elements present in cell electrodes, electrolytes, and separators, comprising diverse metals and chemical constituents.

The primary categories of battery materials include cathode, anode, electrolyte, separator, and other variants. A cathode denotes a metallic electrode facilitating the flow of current in a polarized electrical device. Battery varieties encompass lithium-ion, lead-acid, and additional types, finding application in the automotive sector, household appliances, the electronics industry, and various other fields.Asia-Pacific was the largest region in the battery materials market in 2025. The regions covered in the battery materials market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the battery materials market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The battery materials market consists of sales of materials for primary batteries, and secondary 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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