First-Life EV Battery Global Market Report 2025

The first-life electric vehicle (EV) battery market size has grown exponentially in recent years. It will grow from $63.77 billion in 2024 to $82.7 billion in 2025 at a compound annual growth rate (CAGR) of 29.7%. The growth in the historic period is driven by rising adoption of electric vehicles, increasing government incentives and subsidies for EV purchases, heightened environmental concerns and stricter emission regulations, rising fuel prices encouraging alternative mobility, and expanding production capacities by battery manufacturers.

The first-life electric vehicle (EV) battery market size is expected to see rapid growth in the next few years. It will grow to $163.36 billion in 2029 at a compound annual growth rate (CAGR) of 18.6%. The growth during the forecast period is driven by the growing demand for high-energy-density electric vehicle batteries, rising focus on vehicle range improvement and fast-charging capabilities, growing fleet electrification in logistics and public transportation, increasing emphasis on the circular economy and lifecycle battery optimization, and expanding availability of charging infrastructure in urban regions. Primary trends in the forecast period include the development of long-life battery cycles for extended vehicle range, advancement in thermal management systems for enhanced safety, integration of battery systems with vehicle-to-grid technologies, incorporation of modular and swappable battery architectures, and innovation in sustainable and recyclable battery materials.

The rising demand for longer range electric vehicles is expected to enhance the growth of the first life EV battery market in the coming years. A longer range electric vehicle refers to an electric vehicle designed to offer a significantly greater driving range than standard EVs, often exceeding 400 miles per charge, achieved through advanced battery technology, aerodynamics, and energy efficiency. The demand for longer range electric vehicles is increasing as consumers prefer extended driving distances without frequent charging. The first life EV battery market is growing in response to this demand, as the rapid expansion of longer range EVs encourages manufacturers to adopt higher capacity and more efficient battery technologies. For example, in July 2025, according to Virta Global, a Finland based technology company specializing in an EV energy digital platform, government initiatives to reduce heavy duty truck emissions include the EU targeting 45 percent cuts by 2030 and 90 percent by 2040, with more than 800 electric truck models available globally, and in 2024, Volvo and Scania launched long range electric trucks exceeding 600 kilometers per charge. Therefore, the rising demand for longer range electric vehicles is enhancing the growth of the first life EV battery market.

Key companies operating in the first life electric vehicle (EV) battery market are emphasizing the development of advanced products, such as sodium ion batteries, to improve energy density, safety, and cost efficiency over conventional lithium ion options. Sodium ion batteries are rechargeable energy storage systems that utilize sodium ions to store and release power, providing a more affordable and abundant alternative to lithium based technologies. For instance, in September 2025, Contemporary Amperex Technology Co. Limited, a China based battery manufacturer, introduced Naxtra, a sodium ion EV battery designed to deliver high performance and reliability. The battery achieves an energy density of 175 Wh/kg, enabling a pure electric driving range of over 500 km. Naxtra demonstrates exceptional durability with more than 10,000 charge discharge cycles, a 5C fast charging capability, consistent performance in temperatures ranging from -40°C to +70°C, and a safer chemical composition that reduces fire and explosion risks, marking a significant advancement in sustainable EV battery innovation.

In March 2024, Toyota Motor Corporation, a Japan-based automotive manufacturer, acquired Primearth EV Energy Co. Ltd. from Panasonic Holdings Corporation for an undisclosed amount. Through this acquisition, Toyota aims to strengthen its battery mass production capabilities and respond flexibly to the growing demand for diverse electric vehicle batteries, supporting its multi-pathway electrification and carbon neutrality strategy. Primearth EV Energy Co. Ltd. is a Japan-based company that produces first-life EV batteries.

Major players operating in the first-life electric vehicle (EV) battery market are Contemporary Amperex Technology Co., Limited (CATL), BYD Co. Ltd., LG Energy Solution, Panasonic Holdings Corporation, SK Inc., Samsung SDI Co., Ltd., China Aviation Lithium Battery (CALB), Gotion Inc., EVE Energy Co., Ltd., Sunwoda Electronic Co., Ltd., Farasis Energy, Tesla Inc., Verkor, A123 Systems Corp., Toshiba Corporation, Romeo Power, Exide Industries Ltd., AESC (Automotive Energy Supply Corporation), Solid Power Inc., Beijing WeLion New Energy Technology Co., Ltd., Invenox, Amprius Technologies Inc., Hitachi High-Tech Corporation, Envites Energy, Northvolt AB, OptimumNano Energy Co., Ltd., QuantumScape Corporation.

North America was the largest region in the first-life electric vehicle (EV) battery market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the first-life electric vehicle (EV) battery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the utilities sector, particularly in power generation, grid infrastructure, and renewable energy projects. Higher duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems have increased capital and operational costs for utility providers, forcing them to reconsider project timelines or pass on expenses to consumers through higher energy rates. The water and waste management segments are also affected, with tariffs driving up the cost of essential machinery, piping, and treatment technologies. Additionally, retaliatory tariffs have disrupted global supply chains for critical raw materials like rare earth metals used in clean energy technologies, further complicating the transition to sustainable energy sources. The sector must now prioritize domestic sourcing, digitalization, and efficiency-driven innovations to manage escalating costs while ensuring energy security and regulatory compliance.

The first-life electric vehicle (EV) battery market research report is one of a series of new reports that provides first-life electric vehicle (EV) battery market statistics, including first-life electric vehicle (EV) battery industry global market size, regional shares, competitors with a first-life electric vehicle (EV) battery market share, detailed first-life electric vehicle (EV) battery market segments, market trends and opportunities, and any further data you may need to thrive in the first-life electric vehicle (EV) battery industry. This first-life electric vehicle (EV) battery 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 first-life electric vehicle (EV) battery is a battery used for its original purpose, providing power to an electric vehicle. Its primary function is to store and deliver energy efficiently to propel the EV, supporting performance, driving range, and reliability. It is engineered to endure numerous charge-discharge cycles while maintaining safety and capacity throughout its operational life in the vehicle.

The key battery types of first-life electric vehicle batteries include lithium-ion, nickel-metal hydride, solid-state, and others. Lithium-ion batteries are rechargeable cells that use lithium ions as the primary charge carrier, offering high energy density and long cycle life. They are available in various formats, such as cylindrical cells, prismatic cells, and pouch cells. These batteries are used in multiple vehicle types, including passenger cars, commercial vehicles, and two-wheelers, with capacities ranging from under 30 kilowatt-hours to over 100 kilowatt-hours. They are applied across original equipment manufacturers (OEMs), aftermarket services, energy storage systems, and other applications.

The countries covered in the first-life electric vehicle (EV) battery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The first-life electric vehicle (EV) battery market consists of sales of battery management systems, battery modules, battery packs, high-voltage wiring harnesses, and charging interface components. 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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