Global Electric Vehicle Battery Market By Battery Type (Lead Acid Battery, Nickel-Metal Hydride Battery, Lithium-Ion Battery, and Others), By Vehicle Type (Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), and Hybrid Electric Vehicle (HEV)), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global Electric Vehicle Battery Market was valued at USD 50.5 Billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 26.5%. It is expected to reach USD 500 billion in the forecast period.

The emergence of the technology of Lithium-ion has increased the demand for growth of batteries, which has been a primary solution for automobile manufacturer which can give power to battery electric vehicles, which are also called BEVs and Plug-in Hybrid Electric Vehicles (PHEVs).

Some benefits that have helped in the growth of Li-ion as a battery technology are charge retention capacity, high energy density, and low maintenance. BEVs and PHEVs in the Electric vehicle battery market, which the automobile manufacturers introduce, are expected to offer Li-ion power as a primary solution to their vehicles’ power source.

With the increasing sales of electric vehicles, the e-mobility trend is assumed to gain traction for the forecasted period. The establishment of green power generation capability and the continued rollout of the charging station is an add-on to the market’s growth.

The strategic collaboration between e-mobility providers, energy suppliers, and battery manufacturers is the major trend that drives the growth of the electric vehicle market globally. Developing countries such as India, China, Mexico, and South Africa have been experiencing significant growth in electric vehicle registration.

Key Takeaways

• Market Growth: The global electric vehicle (EV) battery market reached USD 500.5 billion in 2022 and is projected to experience a compound annual growth rate CAGR of 26.5% from 2023-2032.
• Electric Vehicle Battery Types: Lithium-ion batteries currently dominate the EV battery market due to their superior energy density and efficiency, but solid state batteries may experience rapid expansion over the coming years.
• Battery Type Analysis: Lithium-ion is currently the leader of global markets when it comes to battery technology, offering high energy density while remaining lightweight for applications requiring lighter loads.
• Vehicle Type Analysis: Battery electric cars currently reign supreme on the market and hold the greatest share within an estimated timeline.
• Drivers: Government incentives, increased environmental awareness and technological developments all play an essential role in propelling this market forward.
• Restraints: High battery costs and availability concerns could impede market expansion in price-sensitive markets, especially where profits depend heavily on these materials.
• Opportunities: Research into battery technology advancement, partnerships for sustainable battery recycling and an increasing emphasis on renewable energy storage present numerous growth prospects for market players.
• Trends: Demand for long-lasting batteries with fast charging times is increasing, along with investments into manufacturing infrastructure for battery production facilities – both trends are highly visible within the battery market.
• Regional Dominance: Asia-Pacific holds the world battery market share with 38.8% market dominance for electric vehicle batteries.
• Key Players in EV Battery Market: Key companies involved in this market include Panasonic Corporation, LG Chem Ltd., Contemporary Amperex Technology Co. Ltd (CATL), and Samsung SDI Co. among many others.

Driving Factors

Reducing the cost of lithium-ion batteries helps drive the market’s growth globally.

The lithium-ion is the main source of electric vehicles at present. Lithium-ion batteries hold 70% of the rechargeable battery market globally. The battery prices, which are charged kWh, are dropped from 1,000 USD to 200 USD. Due to the advancements in battery packs and the cell chemistry techniques of manufacturing, the prices of batteries are expected to drop in the coming years.

Therefore the decrease in the cost of the battery is the main key driver of the growth of the market globally. Electric vehicles are more important than fuel-based automobiles, which release low emissions and have the potential to develop and utilize renewable energy resources.

The government regulatory bodies implement rigorous fuel economy regulations due to the growing awareness about climate change, which resulted in electric vehicle development by providing subsidies. Therefore the concern about the emission emitted by the vehicles is likely to boost the growth of the market globally.

Restraining Factors

Lack of charging stations to restrain the market growth globally.

Several minerals are essential to store and utilize electricity as a fuel, namely nickel, graphite, cobalt, manganese, and rare elements such as neodymium. The supplies of these minerals are geographically determined, and the alternatives for the battery are limited or do not exist.

The increase in the demand for electric vehicles results in a short-term lack of supply of these battery components. The lack of charging infrastructure is also the key restraint to the market’s growth. The lack of charging infrastructure will eventually decrease the adoption of electric vehicles in emerging economies. Also, the cost of installing the charging infrastructure is high, and the cost per charge of the electric vehicles is low, which can restrain the market growth.

Battery Type Analysis

The lithium-ion battery segment dominates the market growth globally.

Based on the battery type, the segment is classified into Lead-acid, nickel-metal hydride, lithium-ion, sodium-ion, and others. The lithium-ion segment is dominating the market globally. Lithium-ion batteries have high energy density and are used in applications that require lightweight.

These batteries are widely used in automotive applications, including hybrid and electric vehicles, due to their high energy density per weight. Lead-acid batteries are used in applications where weight is not a constraint and where economical batteries are required. Lead acid batteries can be preferred as an alternative to lithium-ion batteries.

Vehicle Type Analysis

The Battery Electric Vehicle (BEV) segment dominates the market’s growth globally.

The battery electric vehicle dominates the growth of the market. It holds the largest market share during the forecasted period. The rise in electric vehicle adoption due to cost-saving and zero carbon emission is driving the market’s growth. The increase in technological advancement is also the reason for the market’s growth.

The continuous advancement in technologies, which will initially decrease the price of the batteries of the electric vehicle, is one of the major reasons for the global growth of the market. The advantages of zero-emission and the ability to not emit toxic gases is the main factor driving the growth of the market.

Key Market Segments

Based on the Battery Type

• Lead Acid Battery
• Nickel-Metal Hydride Battery
• Lithium-Ion Battery
• Others

Based on Vehicle Type

• Battery Electric Vehicle (BEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)

Growth Opportunity

Adopting electric vehicles, which can swap or change batteries, is a major opportunity.

Key major players in the market are coming up with innovative ideas and new business models such as batter-as-a-service, also called BaaS, and battery swapping, allowing the user to change or swap electric batteries once the battery is discharged. This can save the users time spent on charging the batteries, which results in customer satisfaction and can be the main reason for consumers to adopt electric vehicles.

Latest Trends

The development of advanced battery chemistry is the major trend in the market.

Recently, lithium-nickel-manganese-cobalt-oxide, also called NMC is used in the construction of electric vehicle batteries. Eventually, the adoption of new battery chemistries for electric vehicles is growing significantly. This chemistry offers high energy density and a longer life cycle of the batteries, as compared to the equivalent batteries like NMC and NCA material. Therefore the development of advanced battery chemistry is a positive trend that drives the growth of the market globally.

Regional Analysis

APAC region dominates the market growth globally.

Asia-Pacific dominates the global electric vehicle battery market and holds the majority of the market share at 38.8%. Most of the production of electric vehicles is represented by Japan, China, and South Korea. The electric vehicles produced by the European countries use batteries made by Japan and South Korea due to the similar electric grid of the European average.

The domestic market of China uses most of the electric batteries manufactured by China. North America is the leading consumer of electric vehicle batteries, and integrating battery storage with renewables systems offers significant growth in the electric vehicle battery market for lithium-ion batteries.

Europe will face significant growth in the market as the major factor for the growth is the plug-in electric vehicles and the incentive funds by the green recovery funds. Also, some of the major factories are planned across Europe to boost electric vehicle demand.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Major players in the electric vehicle battery market are LG, Samsung SDI, BYD company, Panasonic, and others. The cost of the batteries is the main restraint on the growth of the battery market. Companies like Panasonic and LG chem are heavily investing in Research and Development to lower the cost of batteries by reducing the use of expensive materials used for the electric vehicle battery market manufacturing.

Market Key Players

• ATLASBX Co.
• Sony
• Hitachi
• NEC Corporation
• Panasonic Corporation
• TCL Corporation
• Huanyu New Energy Technology
• Duracell
• NorthStar
• Crown Battery Manufacturing
• GS Yuasa Corp
• East Penn Manufacturing Co.
• C&D Technologies, Inc.
• B. Battery Co., Ltd.
• Narada Power Source Co., Ltd.
• CSB Battery Company Ltd.
• EnerSys, Inc.
• Coslight Technology International Group Co., Ltd.
• Zibo Torch Energy Co., Ltd.
• Other Key Players

Recent Developments

• In June 2021- Nissan Motors announced an announcement of building gigafactories of electric batteries in the United Kingdom, along with a China-based technology company known as Envision AESC.
• In March 2021- A lithium metal battery startup was done by the partnership of General Motors and SolidEnergy systems. This partnership aimed to boost the development of the U.S. automobile manufacturer’s battery, which allows for an increase in the driving range and a smaller package.

Report Scope