The global lithium-ion (Li-ion) battery market is expected to surpass 150 billion U.S. dollars by 2032, compared to a market size of approximately 50 billion U.S. dollars in 2023.

Popularity of lithium-ion batteries

In 2022, Li-ion batteries made up the vast majority of the electrochemical energy storage projects worldwide. Their popularity is due to their lightness and the fact that Li-ion batteries can hold a charge better than other battery types, have no memory effect (no need to completely discharge batteries before recharging) and are able to handle hundreds of charge and discharge cycles.

Market forecast

The popularity of Li-ion batteries will most likely persist in the coming years. Their price is not forecast to increase and, according to recent projections, the global Li-ion demand will experience an almost seven-fold increase between 2022 and 2030.

The global lithium-ion battery market size reached USD 54.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 140.5 Billion by 2033, exhibiting a growth rate (CAGR) of 11.14% during 2025-2033. The market is experiencing significant growth mainly driven by the rising demand for electric vehicles (EVs) and rapid expansion of renewable energy storage solutions. In line with this, technological advancements enhancing battery efficiency and capacity, along with the widespread product adoption in consumer electronics further propels the market growth. At present, Asia Pacific holds the largest market share owing to the presence of a robust battery manufacturing ecosystem.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2025-2033. Our report has categorized the market based on product type, power capacity, and application.

North America Lithium-Ion Battery Market is Segmented by Application (consumer Electronics, Industrial Batteries (motive, Stationary (telecom, Ups, Energy Storage Systems (ESS), Etc. )), and Other Applications (power Tools, Defense, Medical Devices, Etc. )) and Geography (United States, Canada, and Rest of North America). The Report Offers the Market Size and Forecasts for the North America Lithium-Ion Battery Market in Revenue (USD) for all the Above Segments.

The Lithium-Ion Battery Market estimated size and share is projected to exceed USD 265.80 billion by 2034, with a forecasted CAGR of 15.4% during the period.

The global lithium-ion battery market was valued at some 40.5 billion U.S. dollars in 2020. It is projected that the market will grow at a GACR of 14.6 percent, reaching the size of almost 92 billion U.S. dollars in 2026.

The lithium-ion battery industry Lithium-ion batteries are used across several products and industries, from smartphones to electric cars. As of 2020, most of the largest li-ion battery factories worldwide were located in China, which also held the largest share of the global manufacturing capacity that year. LG Chem was the leading li-ion battery manufacturer worldwide as of August 2020, with a market share of around 26.5 percent.

Application in electric vehicles Initially developed for consumer electronics, the li-ion battery type has become increasingly important for its use in electric vehicles. As more countries advance in the shift towards cleaner fuel alternatives, the supply and demand for lithium-ion batteries are expected to continue growing. Combined with technological improvements in battery production, the average price of a lithium-ion battery pack has been steadily falling since 2011. Still, lithium is a finite resource that requires mining and transportation over vast distances. It can be expected that the recycling of lithium-ion batteries will become more important in the coming years, with the market for lithium-ion battery recycling growing seven-fold between 2020 and 2027.

According to Cognitive Market Research, the global Automotive Lithium ion Battery market size will be USD 57142.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 17.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 22857.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 17142.78 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 13142.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 19.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 2857.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 1142.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.9% from 2024 to 2031.
The cathode category is the fastest growing segment of the Automotive Lithium ion Battery industry

Market Dynamics of Automotive Lithium ion Battery Market

Key Drivers for Automotive Lithium ion Battery Market

Increasing Demand for Electric Vehicles (EVs) to Boost Market Growth

The growing demand for electric vehicles (EVs) is one of the primary driving factors for the automotive lithium-ion battery market. As the global automotive industry transitions toward more sustainable, eco-friendly transportation solutions, lithium-ion batteries are essential for powering EVs due to their high energy density, long lifespan, and relatively lighter weight compared to traditional battery technologies. Governments worldwide are implementing stringent emission regulations and offering incentives for EV adoption, fueling this trend. With the increasing adoption of EVs, the demand for lithium-ion batteries, which offer efficient energy storage for electric motors, is expected to rise significantly. Additionally, advancements in EV battery technology, including improvements in range, charging speed, and cost-efficiency, further drive the market. The shift toward electric mobility, including passenger cars, commercial vehicles, and electric two-wheelers, has positioned lithium-ion batteries as the key energy solution in the automotive sector, accelerating market growth. For instance, GS Yuasa International Ltd. revealed plans to develop a new high-capacity lithium-ion battery specifically designed for electric vehicles. This new battery aims to improve energy density by 20% compared to existing models, which will extend the driving range of EVs and support faster charging capabilities.

Advancements in Battery Technology and Performance to Drive Market Growth

Advancements in lithium-ion battery technology significantly contribute to the market's growth. Ongoing research and development efforts aim to improve battery performance, including increased energy density, faster charging times, and longer operational lifespans. Innovations such as solid-state batteries, silicon anode technologies, and improvements in electrolyte materials are enhancing the overall efficiency of lithium-ion batteries, making them more cost-effective and practical for automotive applications. Furthermore, advancements in thermal management and battery management systems (BMS) are helping to enhance battery safety, charging speed, and operational reliability. As the automotive industry increasingly shifts toward electrification, these technological improvements are critical to reducing costs and improving the performance of electric vehicles.

Restraint Factor for the Automotive Lithium ion Battery Market

High Manufacturing Costs Will Limit Market Growth

The production of lithium-ion batteries involves expensive raw materials, such as lithium, cobalt, and nickel, which contribute to the overall cost of battery packs. Additionally, the complex manufacturing processes and advanced technologies required for producing high-performance batteries further elevate costs. These high production costs are reflected in the price of electric vehicles (EVs), making them less affordable for cost-conscious consumers, especially in emerging markets. While technological adv...

The market is segmented by Application (Electronic Devices, Automotive, Energy storage systems, and Other)

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Automotive Li-Ion Battery Market Size 2024-2028

The automotive li-ion battery market size is forecast to increase by USD 56 million at a CAGR of 33.7% between 2023 and 2028. The automotive lithium-ion battery market is experiencing significant growth due to several key factors. Favorable government policies, including incentives for electric vehicle (EV) adoption and investments in renewable energy, are driving market expansion. Additionally, the increase in global production capacity for automotive lithium-ion batteries is enabling mass production of EVs. A major trend in the market is the development of high-performance batteries with improved power capacity and longer life cycles. However, challenges remain, such as the self-discharge rate and toxicity of lithium-ion batteries, as well as the environmental sustainability of battery disposal. As the demand for EVs continues to rise and carbon emissions become a greater concern, addressing these challenges will be crucial for the continued growth of the automotive lithium-ion battery market.

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The automotive industry is witnessing a significant shift towards electric vehicles (EVs) as part of the global efforts to reduce carbon emissions and improve energy efficiency. This transition is largely driven by advancements in battery technology, particularly lithium-ion batteries. Lithium-ion batteries have gained popularity due to their high power density and energy density. These batteries provide a longer driving range and faster charge times compared to their nickel cadmium counterparts. Moreover, they offer low maintenance requirements and a lower self-discharge rate, making them an ideal choice for EVs. Despite their advantages, lithium-ion batteries face challenges related to toxicity and environmental sustainability. However, research and development initiatives are underway to address these concerns by exploring the use of recycled materials in battery production and the development of solid-state batteries.

Further, the adoption of lithium-ion batteries in EVs is influenced by several factors, including battery life, fuel prices, and charge times. As fuel prices continue to rise, the cost-effectiveness of EVs equipped with lithium-ion batteries becomes increasingly attractive. Additionally, the growing demand for energy-efficient vehicles and the need to reduce carbon emissions are driving the market for lithium-ion batteries. Battery storage systems and smart grids are also expected to play a significant role in the growth of the lithium-ion battery market in the automotive industry. These systems enable the efficient management and distribution of electricity, reducing the reliance on traditional power sources and promoting sustainable energy use.

Additionally, connected vehicles and autonomous vehicles are also expected to contribute to the growth of the lithium-ion battery market. These vehicles require advanced battery technology to support their complex systems and extended operation times. Ultra-fast charging technologies are also being developed to address the charging needs of these vehicles, further boosting the market. In conclusion, the lithium-ion battery market in the automotive industry is poised for growth, driven by the shift towards electric vehicles, advancements in battery technology, and the need for sustainable energy solutions. The challenges related to toxicity and environmental sustainability are being addressed through research and development initiatives, ensuring the continued adoption of lithium-ion batteries in the automotive sector.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Vehicle Type

  BEV
  PHEV


Geography

  APAC

    China
    Japan


  Europe

    Germany
    Norway


  North America

    US


  South America



  Middle East and Africa

By Vehicle Type Insights

The BEV segment is estimated to witness significant growth during the forecast period. Energy storage solutions, particularly batteries, play a crucial role in powering electric vehicles (EVs), encompassing battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). Among these, BEVs predominantly utilize lithium-ion (Li-ion) batteries. Comprised of cathode materials, such as lithium, cobalt, and nickel, and anode materials including graphite, electrolytic solution, and separators, li-ion batteries exhibit a higher energy density than lead-acid or nickel-metal hydride batteries. Consequently, they are more compact and retain the same power capacity. Leading automakers, like Nissan Motor Corp., provide high-energy-densit

Lithium-ion batteries could become a 480 billion U.S. dollar market by 2030. Cell components hold a market value potential of about 121 billion U.S. dollars. Meanwhile, mining and refining of battery minerals is expected to generate 114 billion U.S. dollars of revenue in 2030.

Lithium-ion Battery Market size was valued at USD 62 Billion in 2023 and is projected to reach USD 172 Billion by 2030. CAGR of around 15.5%.

The capacity of lithium-ion batteries entering the global market is projected to increase more than 10 fold between 2020 and 2030. Driven by the growing adoption rates of consumer electronics, personal mobility solutions, as well as electric cars, it is expected that in 2030, lithium-ion batteries with a total capacity of around 2,731 gigawatt hours will be placed on the market.

The report covers Asia-Pacific Lithium-ion Battery Manufacturers and the market is segmented by Application (Automotive Batteries, Industrial Batteries, Consumer Electronics Batteries, and Other Applications) and Geography (India, China, Japan, South Korea, and the Rest of Asia-Pacific).

The size and share of the market is categorized based on Type (Below 1Ah, 1Ah-4Ah, Above 4Ah) and Application (Industrial Power Tools, Professional Power Tools, Consumer Power Tools) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Vietnam lithium-ion battery market size is projected to exhibit a growth rate (CAGR) of 19.29% during 2024-2032. The increasing demand for medical devices, including portable diagnostic equipment, patient monitoring devices, and implantable medical devices, which rely on lithium-ion batteries for their power needs, is driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on product type, power capacity, and application.

lithium ion battery market size was worth around USD 65.2 billion in 2024 and is predicted to grow to around USD 397 billion by 2034 (CAGR) of 19.8% between 2025 and 2034

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Next Generation Lithium Batteries Market Size 2024-2028

The next generation lithium batteries market size is forecast to increase by USD 72 billion, at a CAGR of 18.77% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. One of these factors is the increasing demand for clean energy solutions and the need for more efficient and high-performing batteries. companies are responding to this trend by investing heavily in research and development to create advanced battery chemistries, such as magnesium ion batteries, next-generation batteries, and solid electrolyte batteries, face challenges, including material availability and the high cost of producing these next-generation batteries. Cylindrical lithium-ion batteries continue to dominate the market, but alternative technologies like metal-air batteries are gaining traction in specific industries, such as aerospace and defense.

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The market is witnessing significant advancements with the development of next-generation batteries. These advanced batteries are expected to revolutionize various industries, including electric vehicles (EVs), portable electronics, and renewable energy storage. In this context, several types of next-generation batteries are gaining attention, such as lithium-ion (Li-ion), lithium sulfur (Li-S), magnesium ion, nickel-metal hydride (NiMH), ultra-capacitors, solid electrodes, metal air, and aluminum-air batteries. Li-ion batteries, currently the market leader, offer high energy density, long cycle life, and excellent power output. However, they face challenges such as safety concerns and limited resource availability.

Li-S batteries, on the other hand, have the potential to offer higher energy density and lower environmental impact compared to Li-ion batteries. They are still under development and require further research to overcome challenges related to stability and durability. Magnesium ion batteries are another promising technology, as they offer higher energy density, lower cost, and improved safety compared to Li-ion batteries. However, they are still in the research and development stage and face challenges related to scalability and manufacturing. NiMH batteries have been a popular choice for portable electronics due to their high energy density and environmental friendliness.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Automotive
  Consumer electronics
  Energy storage systems
  Aerospace and defense
  Others


Type

  Advanced lithium-ion batteries
  Lithium-sulfur batteries
  Lithium-air batteries


Geography

  APAC

    China
    Japan


  Europe

    Germany
    France


  North America

    US


  South America



  Middle East and Africa

By Application Insights

The automotive segment is estimated to witness significant growth during the forecast period. The automotive sector holds a crucial position in the international market, propelling the industry's expansion as the transportation sector moves towards sustainable solutions. With the increasing focus on reducing carbon emissions and combating climate change, next-generation lithium batteries are indispensable for the rising number of electric cars, buses, and trucks. Advanced battery technologies, including Li-ion, solid-state, and innovative chemistries, are being engineered and introduced to cater to the specific demands of electric vehicles. A significant trend in the automotive segment of The market is the evolution of Li-ion batteries with enhanced energy density, improved safety features, and quicker charging capabilities. This progression is vital in addressing the unique challenges of powering electric vehicles and driving advancements in this sector. Furthermore, the industrial, oil and gas, and consumer electronics sectors also contribute significantly to the growth of the market. Energy storage systems, particularly in renewable energy applications, are another substantial market for these advanced batteries.

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The automotive segment accounted for USD 15.20 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Next-Generation Lithium Batteries are gaining significant traction in the global e

[223+ Pages Report] The global lithium-ion battery market size is expected to grow from USD 49.67 billion in 2021 to USD 165.65 billion by 2030, at a CAGR of 16.32% from 2022-2030

The report titled"China Lithium Ion Battery Market Outlook to 2022 - By Application (Consumer Electronics, Power Storage and Energy Storage), By Type (Ternary, Lithium-Ion Phosphate, Lithium Manganese Oxide and Others), By Shape (Square Shaped, Cylindrical and Soft Pack Battery)"provides a comprehensive analysis of the Lithium Ion Battery market in China. The report focuses on overall market size for lithium-ion battery market in China, market segmentation by application (Consumer Electronics, Power Storage and Energy Storage), by type of battery (Ternary, Lithium-Ion Phosphate, Lithium Manganese Oxide and Others), by shape of battery (Square Shaped, Cylindrical and Soft Pack Battery). The report also covers the overall trade scenario, SWOT, decision making process, competitive landscape and growth drivers and trends and government role and regulations. The report concludes with market projection for future market described above and analyst recommendations highlighting the major opportunities and cautions for the China Lithium-ion Battery market.

The europe lithium-ion battery market will grow from USD 13.6 Bn in 2025 to USD 30.7 Bn by 2032 at a 12.3% CAGR, driven by rising energy storage demand

The global market demand for lithium-ion batteries used in electric vehicles is projected to grow between 2019 and 2030. In 2030, the global demand for lithium-ion batteries is expected to reach approximately 1,525 gigawatt hours.