The EV battery market is projected to reach USD 251.33 billion by 2035 from USD 91.93 billion in 2024 at a CAGR of 9.6%. The market is expanding rapidly, fueled by the increasing adoption of electric vehicles (EVs), technological advancements, and supportive government policies aimed at reducing emissions.
The electric vehicle (EV) battery market is set for significant growth, driven by increasing EV adoption, advancements in battery technologies, and supportive government policies. As of January 2025, growing concerns over climate change and the push for reduced emissions are boosting demand for EVs. Investments in battery production are rising, with notable partnerships, such as General Motors selecting Vianode as its anode graphite supplier to improve EV battery performance and sustainability. Government incentives, like the US Department of Energy planning to grant over USD 3 billion in September 2024 for domestic EV battery production, further support the market. Additionally, advancements in battery chemistries and the growing demand for long-range, fast-charging EVs are enhancing market opportunities. The shift toward electric commercial vehicles is also driving demand for high-capacity batteries, further expanding the market.
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Lithium-ion batteries are projected to dominate the market during the forecast period
In the EV battery market, lithium-ion batteries are expected to maintain the largest market share due to their technological maturity, reliability, and safety. Decades of development and refinement have resulted in high energy density, longer lifespans, faster charging, and improved safety features, making them the preferred choice for EV producers. Their decreasing cost further drives demand, making them more affordable and accessible to consumers. Recent innovations continue to strengthen lithium-ion battery dominance. In April 2024, CATL (China) launched its Shenxing PLUS, an LFP battery capable of delivering a range exceeding 1,000 km and supporting ultra-fast 4C charging.
Prismatic form is projected to grow at the fastest rate during the forecast period
The prismatic form of EV batteries is projected to grow at the fastest rate during the forecast period, driven by its higher energy density, compact design, and structural flexibility, making it ideal for modern EV architectures. This form is increasingly favored by battery manufacturers, including Samsung SDI (South Korea), LG Energy Solution (South Korea), and Panasonic Holdings Corporation (Japan), for its ability to maximize energy storage while ensuring efficient space utilization in vehicle designs. Leading players are also actively advancing prismatic battery technology to enhance performance and durability. In December 2024, LG Energy Solution (South Korea) announced a partnership with General Motors (US) to develop prismatic battery cell technology. With ongoing advancements and increasing adoption by automakers, the prismatic form of EV batteries is poised to play a pivotal role in meeting the evolving demands of the EV industry. Prismatic cells are recognized for their superior thermal management characteristics, which mitigate overheating risks and enhance overall safety protocols. They offer simplified manufacturing processes, potentially decreasing production costs while optimizing the integration of battery packs within electric vehicles.
North America is expected to grow significantly during the forecast period
North America is poised for remarkable growth in the EV battery market, driven by cutting-edge R&D, innovative partnerships, and significant investments by major automotive and battery manufacturers. The region benefits from the presence of industry leaders such as Tesla, GM, Ford, and Stellantis, which are investing heavily in battery production facilities to meet the rising demand for electric vehicles. Recent developments underscore this momentum: In December 2024, the US Department of Energy approved a USD 9.6 billion loan to BlueOval SK, a Ford and SK On joint venture, for EV battery manufacturing. Meanwhile, Tesla is advancing its in-house battery technologies with plans to introduce four new versions to power future vehicles like the Cybertruck and robotaxi. Additionally, General Motors and LG Energy Solution extended their partnership in December 2024 to include prismatic cell development, part of GM’s strategy to diversify its battery chemistries and form factors. Federal and state incentives, including tax credits, investments in EV infrastructure, and a focus on zero-emission freight and public transportation fleets, are further driving this growth. As OEMs expand their electric truck, van, and bus portfolios, the North American EV battery market is set to thrive.
Key Players
The major players in the EV battery market include Contemporary Amperex Technology Co., Limited (China), BYD Company Ltd. (China), LG Energy Solution Ltd. (South Korea), CALB (China), and SK Innovation Co., Ltd. (South Korea).
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