Lithium-Ion Batteries (Global Market)

Main article: Lithium-ion batteries (Li-ion)

2025: Global Lithium-Ion Battery Market Size Exceeds $42 Billion for the Year

In 2024, sales of lithium-ion batteries on a global scale reached $42.1 billion. For comparison, a year earlier, the volume of this market was estimated at $38.91 billion. Thus, growth exceeded 8%. Industry trends are addressed in the Market Research Future survey published in late January 2025.

The growing demand for electrified vehicles is one of the most significant drivers of the market in question. Lithium-ion batteries are widely used in electric vehicles because they provide high energy storage density and long life. Against the background of increasing environmental problems and tightening requirements for emissions of harmful gases in the atmosphere, automakers around the world are actively developing the direction of vehicles with electric power plants. And this leads to an increase in the need for batteries.

Another stimulating factor is the constant advances in battery technology. Developers are improving key battery features such as performance and efficiency. The use of new generation materials and improved production processes makes it possible to increase energy storage density and reduce charging time. Innovations are also aimed at reducing production costs, which makes lithium-ion batteries more accessible for various applications.

Demand is also boosted by the integration of renewable energy sources such as solar and wind plants into the power grid: this creates a need to deploy efficient energy storage solutions. Lithium-ion batteries are often used as storage for storing excess energy generated during peak periods. Such energy can then be used to stabilize the infrastructure with a sharp increase in electricity consumption. In addition, lithium-ion batteries are used in all kinds of mobile devices, including smartphones, tablets and wearable gadgets, whose sales remain at a high level.

In terms of battery applications, analysts distinguish four key segments: consumer electronics, electric vehicles, energy storage systems and industrial equipment. In 2024, the first of these areas accounted for $15 billion: the high demand for batteries in this sector is due to the widespread presence of smart devices and gadgets that require reliable and durable power supplies. Batteries for electric vehicles brought in about $20 billion, and energy storage systems - $5.5 billion. Expenses in the field of industrial equipment are estimated at $1.6 billion. The key players in the industry are:

• General Motors;
• Panasonic;
• A123 Systems;
• Volkswagen;
• Tesla;
• Samsung SDI;
• BMW;
• CATL;
• Farasis Energy;
• Nissan;
• LG Chem;
• Schaeffler;
• Saft;
• BYD;
• SK Innovations.

From a geographical point of view, North America was in the lead in 2024, where sales of lithium-ion batteries are estimated at $15 billion. This is followed by the Asia-Pacific region and Europe with costs of $12 billion and $10 billion, respectively. South America, secured a contribution of $3 billion, the Middle East and Africa - approximately $2.1 billion.

Market Research Future analysts believe that in the future, the CAGR in the market under consideration will be about 8.19%. As a result, by 2035, costs on a global scale could rise to about $100 billion.^[1]

2023: Flat Lithium-Ion Battery Market Growth by 10% to $21.74 Billion

In 2023, costs in the global flat lithium-ion battery market amounted to about $21.74 billion. This is about 10% more than the result for 2022, when the volume of the industry was estimated at $19.74 billion. Such data are reflected in a study by Market Research Future, the results of which were published at the end of November 2024.

Analysts take into account the sales of lithium-ion batteries of various form factors. The authors of the report call the development of the electric vehicle sector a key driver of the market in question. In such vehicles, mainly lithium-ion power supplies are used as traction batteries. In addition, batteries of this type are widely in demand in other devices and equipment, including laptops, smartphones, tablets, wearable gadgets and power tools. Medical devices are another major segment: lithium-ion batteries, in particular, are used in pacemakers, defibrillators and other implantable devices.

Demand for lithium-ion batteries is driven by technological advances. Researchers are constantly developing and implementing new ways to improve performance and security, as well as reduce product costs. In particular, next-generation materials increase energy storage density. However, electrolytes with improved composition help to increase battery performance at extreme temperatures. These technologies make lithium-ion batteries more attractive for a wide range of applications, including electric vehicles, portable electronic devices and energy storage.

Government regulation also plays an important role in the development of the industry. In many countries, governments are imposing requirements to reduce emissions of harmful gases into the atmosphere and introduce renewable energy technologies. These regulations create a favorable environment for the development and production of lithium-ion batteries. For example, the Chinese authorities are actively supporting the electric vehicle industry: subsidies for the purchase of such cars, tax breaks for manufacturers and investments in charging infrastructure are provided. The European Union has also introduced a series of regulations aimed at developing an ecosystem of electric propulsion vehicles.

Geographically, the largest share of revenue in 2023 was provided by North America - approximately $7.79 billion: there is a relatively high level of introduction of electric vehicles, which determines the demand for lithium-ion batteries. Europe is showing significant growth against the background of state initiatives aimed at introducing electrified transport. At the same time, Asia-Pacific is showing the most significant dynamics due to the increasing demand for electric vehicles and the rapidly developing consumer electronics industry. The key players in the global lithium-ion battery industry are:

• BYD;
• Hitachi Chemical;
• Maxell;
• Guoxuan HighTech;
• LG Chem;
• Panasonic;
• Valence Technology;
• SK Innovation;
• Elbit Systems;
• Saft;
• Murata Manufactur;
• EnerSys;
• LG Energy Solution;
• CATL;
• Samsung SDI.

At the end of 2024, revenue in the segment of lithium-ion power sources is estimated at $23.94 billion. Market Research Future analysts believe that in the future, the CAGR will be 10.13%. As a result, by 2032, costs on a global scale could increase to $51.81 billion.^[2]

2022: US Senate admits US lag behind China in battery production for 20 years

In early November 2023, two influential senators said that the United States was 10-20 years behind China in the development and production of batteries. It is noted that in 2022 the United States produced less than 10% of lithium-ion batteries, while the PRC accounts for about 70%.

According to reports, Reuters Senate Intelligence Committee Chairman Mark Warner and Committee Chairman to power Joe Manchin sent a letter to the Ministry. The power engineering specialists document states the need to take steps to stimulate battery production in the United States and organize research in the relevant field. China is said to dominate the global battery supply chain for electric vehicles, including the production of graphite - one of the key components. At the same time, it is expected that by 2035 the demand for batteries on a global scale will grow by more than seven times.

China accounts for about 70% of lithium-ion batteries in the world

The United States should become a leader in the production of batteries and their components, while ensuring the safety of our supply chains of materials, the senators say.

It is noted that of the five most important minerals required for most lithium-ion batteries, China "controls from 60% to 100% of the extraction or processing of these minerals." The letter also points out that "it is imperative that the U.S. leads the way in next-generation battery technology and alternative chemistry." At the same time, according to senators, the development of new generation battery technologies should be coordinated Ministry of Defence with other national security agencies. Lithium-ion batteries, it said, Pentagon are crucial for thousands of military systems, from "hand-held radios to unmanned underwater vehicles and future projects such as lasers, directed energy weapons and hybrid electric tactical vehicles."^[3]

2019: Sales growth to $31.36 billion

The volume of the global lithium-ion battery market in 2019 reached $31.36 billion, according to the analytical company ResearchAndMarkets. Experts did not specify the dynamics and only reported that sales of such batteries are on the rise.

According to the researchers, the growth of the lithium-ion battery market is primarily due to the supply of high density cells for them. Such components allow devices to work longer without recharging.

The volume of the global lithium-ion battery market in 2019 reached $31.36 billion

Most lithium-ion batteries used in portable electronics use cobalt at their core, providing the highest energy density among other commercial solutions. The specific energy capacity of the lithium-ion battery is 100-265 W/kg or 250/670 W/l, which is one of the highest indicators on the market.

Lower prices for lithium-ion batteries are contributing to their sales growth. According to analysts, the cost of such batteries in 2013 was $650 per kWh, and in 2018 the figure fell to $176.

The cost reduction is due to the use of new materials, production processes and increased investment from manufacturers.

The leaders of the lithium-ion battery market in ResearchAndMarkets are the following companies:

• A123 Systems;
• Automotive Energy Supply Corp;
• LG Chem;
• Panasonic;
• Samsung SDI;
• Toshiba;
• BYD;
• Automotive Energy Supply Corp;
• Modern Amperex technology;
• Johnson Controls.

One of the main issues holding back the rapid growth of the lithium-ion battery market is safety, the study said. Such devices store a large amount of energy, which leads to the risk of explosion or fire. The U.S. Federal Aviation Administration (FAA) reported 206 incidents involving the explosion of lithium-ion batteries at airports between March 1991 and January 2018.^[4]

Notes