Global Electric Vehicle Lithium-Ion Battery Market Report and Forecast 2024-2032

Global Electric Vehicle Lithium-Ion Battery Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the global electric vehicle lithium-ion battery market size reached a value of USD 45.23 billion in 2023. Aided by the rising demand for electric vehicles (EVs) and the increasing focus on sustainable energy solutions, the market is projected to further grow at a CAGR of 22.7% between 2024 and 2032 to reach a value of USD 290.95 billion by 2032.

Lithium-ion (Li-ion) batteries are rechargeable batteries that play a central role in the operation of electric vehicles. These batteries are widely regarded for their high energy density, lightweight design, and long lifespan, which makes them the preferred choice for EV manufacturers. With growing concerns about climate change, the need to reduce carbon emissions, and the push towards green energy, lithium-ion batteries have become a key enabler of the electric vehicle revolution.

The increasing adoption of electric vehicles across the globe is a major factor driving the electric vehicle lithium-ion battery market growth. Governments worldwide are introducing stringent regulations aimed at reducing greenhouse gas emissions and promoting sustainable transportation. Various countries, particularly in Europe and North America, have announced policies to phase out the sale of internal combustion engine (ICE) vehicles, further spurring demand for EVs. As a result, manufacturers are ramping up production of electric vehicles, leading to a higher demand for electric vehicle (EV) lithium-ion batteries.

Additionally, technological advancements in battery technology are playing a crucial role in enhancing the performance of electric vehicles. Innovations in battery chemistry, such as the development of solid-state lithium-ion batteries, are aimed at improving energy density, reducing charging times, and increasing the overall range of electric vehicles. These advancements are expected to further bolster the electric vehicle lithium-ion battery market expansion in the coming years.

One of the key electric vehicle lithium-ion battery market trends is the declining cost of lithium-ion batteries. Over the past decade, the cost of these batteries has dropped significantly due to advancements in manufacturing processes and economies of scale. This reduction in costs has made electric vehicles more affordable to the average consumer, increasing their adoption and, consequently, driving the electric vehicle lithium-ion battery market development.

Lithium-ion batteries are not only used in electric vehicles but also in a variety of other applications across multiple industries. In the energy sector, they are used for grid energy storage, enabling the storage of renewable energy generated from sources like solar and wind. As the global push for renewable energy intensifies, the demand for lithium-ion batteries in energy storage systems is expected to rise substantially.

In consumer electronics, lithium-ion batteries power a wide range of devices, from smartphones to laptops, owing to their compact size, lightweight design, and long battery life. The growing consumer electronics industry is, therefore, contributing to the electric vehicle lithium-ion battery market value.

Furthermore, lithium-ion batteries are also used in aerospace and defence applications, where their lightweight and high-energy capacity are essential for advanced technologies. These diverse applications highlight the broad scope of lithium-ion battery usage and its importance in various sectors of the global economy.

Market challenges also present significant market opportunities. The development of battery recycling technologies is gaining momentum, with several companies investing in research and infrastructure to recover valuable metals from used batteries. The advancement of alternative battery chemistries that rely less on scarce materials, such as sodium-ion or solid-state batteries, could also help mitigate supply chain risks.

The electric vehicle lithium-ion battery market demand is expected to witness substantial growth over the forecast period. The shift towards electric vehicles is accelerating, driven by increasing consumer awareness of climate change, government regulations, and advancements in battery technology. The declining cost of lithium-ion batteries is making EVs more accessible to a broader market, while innovations in battery chemistry continue to improve performance and efficiency.

Market Segmentation

The electric vehicle lithium-ion battery market can be divided based on battery capacity, propulsion, vehicle, and region.

Market Breakup by Battery Capacity

• Less than 100 kWh
• 100 – 300 kWh
• 300 – 500 kWh
• More than 500 kWh

Market Breakup by Propulsion

• Battery Electric Vehicle
• Hybrid Electric Vehicle
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle

Market Breakup by Vehicle

• Passenger Car
• Commercial Vehicle

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global electric vehicle lithium-ion battery market. Some of the major players explored in the report by Expert Market Research are as follows:

• Contemporary Amperex Technology Co., Limited (CATL)
• Panasonic Corporation
• LG Electronics
• Samsung Electronics Co. Ltd.
• BYD Motors Inc.
• SK Innovation Co
• CALB Group Co.，Ltd
• Mitsubishi Electric Corporation
• Grinntech Motors & Services Pvt. Ltd.
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.