Automotive Secondary Battery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Technology (Lead-acid Batteries, Lithium-ion Batteries, and Others), By Type (HEV, PHEV, and EV), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 62.57 Billion
CAGR (2026-2031)	10.11%
Fastest Growing Segment	Lead-acid Batteries
Largest Market	Asia Pacific
Market Size (2031)	USD 111.51 Billion

Market Overview

The Global Automotive Secondary Battery Market will grow from USD 62.57 Billion in 2025 to USD 111.51 Billion by 2031 at a 10.11% CAGR. The Global Automotive Secondary Battery Market is defined as the sector dedicated to the engineering and manufacturing of rechargeable energy storage systems, predominantly lithium-ion and nickel-metal hydride units, utilized for propulsion and auxiliary power in electric and hybrid vehicles. The market’s expansion is fundamentally supported by the enforcement of rigorous government emission standards, the accelerating transition toward fleet electrification, and substantial improvements in battery energy density. Underscoring the rapid growth in this sector, according to the China Automotive Battery Innovation Alliance, in 2024, cumulative power battery installations reached 548.4 GWh.

Despite this positive trajectory, a significant challenge impeding market expansion is the instability of critical raw material supply chains. The industry relies heavily on minerals such as lithium, cobalt, and nickel, which are frequently subject to volatile pricing and geopolitical trade risks. This supply vulnerability creates potential bottlenecks in manufacturing scalability and threatens to delay the cost reductions required to meet the rising global demand for affordable electric mobility.

Key Market Drivers

The accelerating global adoption of electric and hybrid vehicles serves as the primary catalyst propelling the Global Automotive Secondary Battery Market. As nations transition away from internal combustion engines to meet decarbonization targets, the demand for high-capacity lithium-ion units has surged to unprecedented levels. This consumption volume directly necessitates proportional increases in battery production output to satisfy the requirements of new automotive fleets. This trend is substantiated by robust sales figures; according to the International Energy Agency (IEA), April 2024, in the 'Global EV Outlook 2024', global electric car sales reached nearly 14 million units in 2023, capturing 18% of the total automotive market. The market is further bolstered by improving cost dynamics which enhance vehicle affordability. According to Goldman Sachs Research, October 2024, global average battery prices were projected to decline to $111 per kilowatt-hour by the end of 2024, a trend that lowers entry barriers for mass-market electrification and stimulates widespread battery procurement.

Simultaneously, rising investments in battery gigafactories and production capacity are reshaping the supply landscape to accommodate this escalating demand. Manufacturers and governments are aggressively expanding infrastructure to localize supply chains and reduce reliance on volatile import markets, ensuring that production capabilities match the trajectory of vehicle sales. A prime example of this supply-side expansion occurred when, according to the U.S. Department of Energy, September 2024, in a press release regarding the 'Investing in America' agenda, the agency awarded over $3 billion in grants to 25 projects across 14 states specifically to boost domestic battery manufacturing and recycling capabilities. These capital infusions allow the market to scale rapidly, transitioning from pilot lines to multi-gigawatt-hour production facilities capable of servicing major automotive OEMs. This strategic expansion ensures that the industry can sustain the throughput required for the continued electrification of transport sectors.

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Key Market Challenges

The instability of critical raw material supply chains constitutes a formidable barrier to the growth of the Global Automotive Secondary Battery Market. Manufacturers rely heavily on minerals such as lithium, cobalt, and nickel, which are subject to volatile pricing and geopolitical trade risks. This unpredictability creates severe bottlenecks in manufacturing scalability, as producers struggle to forecast long-term costs or secure consistent inputs. When raw material prices fluctuate unexpectedly, battery makers cannot maintain the stable pricing structures necessary for automotive OEMs to plan their fleet electrification strategies effectively, leading to financial uncertainty that stifles investment.

This structural vulnerability is exacerbated by the intense geographic concentration of the upstream value chain. According to the European Automobile Manufacturers’ Association, in 2025, the European Union held only a 7% share of global battery production, while China and the United States controlled 87% of upstream supply chain capacity. This disparity highlights the market's exposure to trade tensions and regional supply shocks. Such high dependence on limited sources means that logistical disruptions can immediately stall manufacturing output. Ultimately, these supply chain rigidities threaten to delay the cost reductions required to make electric vehicles affordable, directly hampering the broader expansion of the secondary battery sector.

Key Market Trends

The expansion of Lithium Iron Phosphate (LFP) market share represents a fundamental shift in battery chemistry preferences, driven by the industry's strategic need to decouple from expensive and volatile cobalt and nickel supplies. Unlike general cost reduction drivers, this trend highlights a technological migration where automotive manufacturers are prioritizing thermal stability and supply chain security over maximum energy density for standard-range fleets. This structural change is evidenced by the rapid displacement of ternary chemistries in major global markets. According to the International Energy Agency (IEA), May 2025, in the 'Global EV Outlook 2025', lithium iron phosphate (LFP) batteries captured nearly 50% of the global electric vehicle battery market share in 2024, underscoring their dominance in the mass-market segment.

Concurrently, the adoption of Sodium-Ion chemistries for budget vehicles is emerging as a critical trend to circumvent lithium scarcity and further lower entry barriers for electrification. This technology utilizes abundant sodium reserves, offering a cost-effective alternative for entry-level passenger cars where ultra-high energy density is less critical than affordability and cold-weather performance. The commercial viability of this chemistry has accelerated rapidly from research to tangible deployment. For instance, according to CATL, April 2025, in a press statement regarding its 'Naxtra' platform, the company revealed that its new mass-produced sodium-ion cells achieve an energy density of 175 watt-hours per kilogram, marking a significant breakthrough in performance viability for commercial electric vehicles.

Segmental Insights

Based on insights from reputable market research, the Lead-acid Batteries segment is currently positioned as the fastest-growing category within the Global Automotive Secondary Battery Market. This accelerated expansion is primarily driven by the surging demand for cost-effective energy storage in micro-hybrid vehicles, particularly those equipped with Start-Stop technology which requires advanced lead-acid solutions like Absorbent Glass Mat (AGM) batteries. Additionally, the segment benefits significantly from a well-established global recycling infrastructure, ensuring compliance with stringent environmental sustainability targets. The combination of superior reliability, economic viability, and high replacement rates in the automotive aftermarket further cements the rapid growth of this segment.

Regional Insights

Asia Pacific holds the leading position in the global automotive secondary battery market, driven by the extensive manufacturing capabilities of China, South Korea, and Japan. The region benefits from a fully integrated supply chain that spans from raw material processing to final cell production. This dominance is further reinforced by government policies promoting electric mobility and strict emission standards. For example, the Ministry of Industry and Information Technology in China enforces regulations that accelerate the adoption of new energy vehicles, directly sustaining demand for secondary batteries and ensuring continuous regional market expansion.

Recent Developments

• In October 2024, Contemporary Amperex Technology Co., Limited (CATL) launched the Freevoy Super Hybrid Battery, a specialized product designed for plug-in hybrid and extended-range electric vehicles. The new battery delivers a pure electric range exceeding 400 kilometers and supports 4C ultra-fast charging, capable of replenishing over 280 kilometers of range in just ten minutes. To address performance issues in cold climates, the company integrated sodium-ion battery technology, ensuring reliable discharge capabilities at temperatures as low as -40 degrees Celsius. The manufacturer confirmed that this battery system would be adopted by multiple automotive brands for approximately 30 vehicle models by 2025.
• In October 2024, LG Energy Solution Ltd. secured a significant long-term supply agreement with an affiliate of Mercedes-Benz AG to provide electric vehicle batteries for the North American market. Under the ten-year contract, the company committed to supplying a total of 50.5 gigawatt-hours of batteries, which are expected to be its advanced 46-series cylindrical cells. These batteries will be manufactured at the company's new standalone facility in Arizona, with delivery scheduled to begin in 2028. This collaboration marks a strategic expansion of the battery maker's customer base in the premium automotive sector beyond its existing partnerships.
• In September 2024, Toyota Motor Corporation received official certification from Japan's Ministry of Economy, Trade and Industry for its development and production plans regarding next-generation and all-solid-state batteries. This approval, granted under the government's Supply Assurance Plan for Batteries, allows the company to accelerate its roadmap for manufacturing advanced solid-state batteries that promise higher energy density and improved safety. The company aims to commence initial production of these batteries by 2026 and scale up to mass production by 2030, leveraging the manufacturing capabilities of its subsidiaries to strengthen the domestic battery supply chain.
• In March 2024, Samsung SDI unveiled its roadmap for the commercialization of all-solid-state batteries during the InterBattery 2024 exhibition in Seoul. The company announced that it is on track to begin mass production of these next-generation batteries, which feature an industry-leading energy density of 900 watt-hours per liter, by 2027. The CEO of the company stated that preparations for the manufacturing line were well underway, utilizing proprietary solid sulfide electrolytes and anode-less technologies to enhance battery life and safety. This initiative is part of the company's broader strategy to lead the "super-gap" technology market for premium electric vehicles.

Key Market Players

• Contemporary Amperex Technology Co. Limited
• BYD Co. Ltd
• Tesla, Inc.
• Panasonic Corporation
• Samsung SDI Co. Ltd
• LG Chem Ltd
• GS Yuasa Corporation
• Duracell Inc.
• EnerSys
• Saft Groupe SA

By Technology	By Type	By Region
Lead-acid Batteries Lithium-ion Batteries Others	HEV PHEV EV	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Secondary Battery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Secondary Battery Market, By Technology:

• Lead-acid Batteries
• Lithium-ion Batteries
• Others

• Automotive Secondary Battery Market, By Type:

• HEV
• PHEV
• EV

• Automotive Secondary Battery Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE