EV Battery Market Analysis and Forecast to 2033

EV Battery Market Analysis and Forecast to 2033: By Vehicle Type (Two-Wheeler, Passenger Cars, Buses, Commercial Light Duty Vehicles, Others), Propulsion Type (Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), Fuel Cell Electric Vehicle (FCEV)), Battery Type (Lithium-Ion Battery, Lead-Acid Battery, Nickel-Metal Hydride, Solid-state Battery, Sodium-ion Battery), Battery Capacity (<50kWh, 50-110 kWh, 111-200 kWh, 201-300 kWh, >300 kWh), Material Type (Lithium, Manganese, Cobalt, Graphite, Nickel), and Region

The global EV battery market size was approximately USD 59.4 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of over 14.4% from 2024 to 2033.

One kind of rechargeable battery that powers an electric vehicle is an electric vehicle (EV) battery. It powers the electric motor and supplies electricity to the electrical systems of the car as its main power source. It substitutes conventional combustion engines with electric ones, which are more efficient and produce less pollution. These are often made of lithium ion cells or other advanced battery chemistries.

Key Trends

Battery demand for EVs continues to rise

The demand for automotive lithium-ion (Li-ion) batteries grew by almost 65% to 550 GWh in 2022 from around 330 GWh in 2021, mostly due to a rise in the sales of electric passenger cars, with new registrations rising by 55% in 2022 compared to 2021.

In China, the demand for automobile batteries jumped by more than 70%, while sales of electric cars rose by 80% in 2022 compared to 2021. The rise in battery demand was somewhat offset by a rise in the proportion of plug-in hybrid electric vehicles (PHEVs). Even if sales of electric cars increased by only around 55% in 2022, the demand for batteries for automobiles in the US increased by about 80%. Despite the fact that the average battery size for electric cars in the US increased by only 7% in 2022, it is still approximately 40% larger than the global average. This is partly because SUVs account for a larger portion of US electric car sales than other major markets, and manufacturers have implemented strategies to increase the range of their vehicles when they use only electricity. Sales of BEVs and PHEVs are surpassing those of hybrid electric vehicles (HEVs) worldwide, and as the battery sizes of BEVs and PHEVs grow, so does the need for batteries.

The need for essential materials is driven by the rise in battery use. Lithium output has increased by 180% since 2017, yet supply still fell short of demand in 2022 (as it did in 2021). About 60% of the demand for lithium, 30% for cobalt, and 10% for nickel in 2022 came from EV batteries. In 2017, only five years prior, these percentages were around 15%, 10%, and 2%, in that order. Mining and processing of these vital minerals will need to pick up speed quickly to support the energy shift, not just for EVs but also more generally to keep up with the rate of demand for clean energy technology, as has already been observed with regard to lithium. Reducing the requirement for essential resources is also crucial for the security, resilience, and sustainability of the supply chain. In order to assist the adoption of car models with optimised battery sizes and the advancement of battery recycling, it can be helpful to accelerate innovation. Examples of such innovations include better battery technologies that need less quantities of key materials.

Key Drivers

The key drivers of the EV battery market are the government regulations, the falling prices of batteries, and the increasing range of electric vehicles.

The government regulations are the most important driver of the EV battery market. The regulations are designed to encourage the adoption of electric vehicles and to reduce the emissions from transportation. The regulations require that a certain percentage of the vehicles sold in a country must be electric vehicles. This has led to a large increase in the demand for EV batteries.

The falling prices of batteries are another important driver of the EV battery market. The prices of batteries have fallen significantly in recent years, making electric vehicles more affordable. This has led to a large increase in the demand for electric vehicles.

The increasing range of electric vehicles is another driver of the EV battery market. The range of electric vehicles has increased significantly in recent years, making them more practical for long-distance travel. This has led to a large increase in the demand for electric vehicles.

Restraints & Challenges

High Cost

The expensive cost of producing EVs has been a major barrier to their widespread adoption. The overall cost of buying electric hatchbacks, crossovers, or SUVs will probably drop to levels equivalent to ICL automobiles due to the predicted decline in battery costs and R&D expenditure, which will increase demand for EVs. Battery costs are heavily influenced by the cathode’s cost due to the comparatively high cost of raw materials such cobalt, nickel, lithium, and magnesium. Because of the expensive manufacturing process, the cost of producing EVs is likewise significantly greater than that of producing ICE cars.

Market Segments

The EV Battery Market report is segmented on the basis of Vehicle Type, Propulsion Type, Battery Type, Battery Capacity, Material Type, and Region. Based on Vehicle Type, it is segmented into Two-Wheeler, Passenger Cars, Buses, Commercial Light Duty Vehicles, and Others (Trucks, Trailers). Based on Propulsion Type, it is segmented into Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), and Fuel Cell Electric Vehicle (FCEV). Based on Battery Type, the EV Battery market has been segmented into Lithium-Ion Battery, Lead-Acid Battery, Nickel-Metal Hydride, Solid-state Battery, and Sodium-ion Battery. By Battery Capacity, it is segmented into <50kWh, 50-110 kWh, 111-200 kWh, 201-300 kWh, and >300 kWh. On the basis of Material Type, it is segmented into Lithium, Manganese, Cobalt, Graphite, and Nickel. Region-wise, it is studied across North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Key Players

Some of the key players of EV Battery Market are Siro (Turkey), Amara Raja Energy & Mobility Limited (India), BYD (China), EnerSys (US), Exicom (India), Exide Industries Limited (India), Grinntech Motors & Services Pvt. Ltd. (India), Hitachi, Ltd. (Japan), LG Energy Solution Ltd. (South Korea), Mitsubishi Corporation (Japan),Octillion (US), Okaya Power Pvt. Ltd. (India), Panasonic Corporation (Panasonic Life Solutions India Pvt. Ltd.) (Japan), SAMSUNG SDI CO.,LTD. (South Korea), and Toshiba Corporation (Japan).

EV Battery Market Report Coverage

The report offers a comprehensive quantitative as well as qualitative analysis of the current EV Battery Market outlook and estimations from 2022 to 2032, which helps to recognize the prevalent opportunities.

The report also covers qualitative as well as quantitative analysis of EV Battery Market in terms of revenue ($Million).

Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the EV Battery Industry.

A thorough analysis of market trends and restraints is provided.

By region as well as country market analysis is also presented in this report.

Analytical depiction of the EV Battery Market along with the current trends and future estimations to depict imminent investment pockets. The overall EV Battery industry opportunity is examined by understanding profitable trends to gain a stronger foothold.

Porter’s five forces analysis, SWOT analysis, Pricing Analysis, Case Studies, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the EV Battery Market are also analyzed.