Lithium-ion Battery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Lithium cobalt oxide (LCO), Lithium iron phosphate (LFP), Lithium Nickel Cobalt Aluminum Oxide (NCA), Lithium Manganese Oxide (LMO), Lithium Titanate (LTO), Lithium Nickel Manganese Cobalt (LMC)), By Power Capacity (0-3,000 mAh, 3,000-10,000 mAh, 10,000-60,000 mAh, 60,000 mAh, and above), By Voltage (Upto 12V, 12V-36V, and Above 36V), By End User (Consumer Electronics, Automotive, Aerospace, Marine, Medical, Industrial, Power, Telecommunications, and Others), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 70.83 Billion
CAGR (2026-2031)	20.97%
Fastest Growing Segment	Cathode
Largest Market	North America
Market Size (2031)	USD 221.96 Billion

Market Overview

The Global Lithium-ion Battery Market will grow from USD 70.83 Billion in 2025 to USD 221.96 Billion by 2031 at a 20.97% CAGR. Lithium-ion batteries are rechargeable electrochemical devices that store and release energy through the movement of lithium ions between the cathode and anode during charge and discharge cycles. The global market is primarily propelled by the accelerating adoption of electric vehicles and the critical necessity for grid-scale energy storage systems to support renewable energy integration. Additionally, the sustained reliance on high-performance power sources for portable consumer electronics continues to underpin the industry's fundamental growth trajectory.

According to the International Energy Agency, in 2024, global demand for electric vehicle batteries exceeded 950 GWh, representing a 25% increase compared to the previous year. Despite this robust expansion, the industry faces a significant challenge regarding the volatility of raw material supply chains. Unpredictable fluctuations in the availability and cost of critical minerals such as lithium and cobalt create manufacturing bottlenecks and financial instability, which could potentially impede the consistent scaling of production required to meet future global demand.

Key Market Drivers

The accelerating global adoption of electric vehicles (EVs) serves as the primary catalyst propelling the lithium-ion battery market. As automotive manufacturers transition portfolios away from internal combustion engines, the demand for high-capacity battery packs has intensified, fundamentally reshaping supply chain priorities. This surge is driven by consumer shifts and regulatory mandates that require substantial volumes of energy-dense storage solutions to support longer driving ranges and faster charging capabilities. According to the International Energy Agency, May 2025, in the 'Global EV Outlook 2025' report, global electric car sales increased by approximately 35% in the first quarter of 2025 compared to the same period in the previous year. This robust growth trajectory underscores the automotive sector's critical role in establishing the manufacturing baseload necessary for wider industry expansion.

Simultaneously, the expansion of grid-scale renewable energy storage has emerged as a vital parallel driver, diversifying demand beyond the transport sector. As nations integrate higher percentages of intermittent solar and wind energy, utility-scale lithium-ion battery energy storage systems (BESS) are being deployed at unprecedented rates to ensure grid stability and load balancing. This segment is rapidly scaling from pilot implementations to massive infrastructure assets, creating a stable secondary market for cell production. According to the U.S. Energy Information Administration, February 2025, in the 'Preliminary Monthly Electric Generator Inventory' report, developers scheduled the addition of 18.2 GW of utility-scale battery storage capacity to the U.S. power grid throughout 2025. This industrial scaling is further evidenced by production volumes in major hubs; according to the China Association of Automobile Manufacturers, in 2025, monthly sales of new energy vehicles reached a record 1.715 million units in October, sustaining the economies of scale that benefit all battery applications.

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Key Market Challenges

The volatility of raw material supply chains significantly impedes the consistent expansion of the global lithium-ion battery sector. Unpredictable fluctuations in the cost and availability of essential minerals, particularly lithium and cobalt, create a cycle of financial instability that complicates long-term investment strategies. When prices are erratic, mining companies hesitate to commit capital to new extraction projects, leading to potential future shortages that cannot be quickly rectified. This uncertainty disrupts the manufacturing timeline, as battery producers struggle to secure steady feedstock at predictable rates, ultimately creating bottlenecks that slow the industry's ability to scale production capacity in line with downstream requirements.

According to the International Energy Agency, in 2024, the industry witnessed this instability firsthand when lithium spot prices plummeted by approximately 75% following a period of supply outpacing demand. While such price drops might appear beneficial temporarily, this extreme variance discourages the sustained investment necessary to develop new mines. Consequently, this boom-and-bust dynamic threatens to restrict future supply availability, directly hampering the market's long-term growth trajectory and stability.

Key Market Trends

The accelerated adoption of Lithium Iron Phosphate (LFP) chemistries is fundamentally altering the technological landscape of the global lithium-ion battery market. Manufacturers are increasingly prioritizing this iron-based chemistry over nickel-cobalt-manganese (NCM) alternatives for standard-range electric vehicles and stationary storage due to its superior thermal safety, longer cycle life, and significant cost advantages. This shift allows automotive OEMs to decouple production expenses from the price volatility associated with cobalt and nickel, effectively democratizing access to electrification through more affordable vehicle models. This structural transition is evidenced by the chemistry's rapid conquest of market share; according to the International Energy Agency, May 2025, in the 'Global EV Outlook 2025' report, LFP batteries constituted nearly half of the global electric vehicle battery market in 2024, cementing their status as a dominant industry standard rather than a niche low-cost solution.

Simultaneously, the expansion of lithium-ion battery recycling and circular economy ecosystems has emerged as a critical trend to secure sustainable raw material supplies and meet tightening environmental regulations. Stakeholders are aggressively scaling infrastructure to recover strategic metals like lithium, cobalt, and nickel from end-of-life cells and manufacturing scrap, creating a closed-loop system that reduces reliance on virgin mining operations. This industrial maturation is characterized by the increasing ability of recyclers to process diverse feedstocks, including large-format packs from the energy storage sector. According to Li-Cycle, February 2025, in the 'Fourth Quarter and Full Year 2024 Financial Results', the company recycled the equivalent of more than 100 MWh of energy from its Battery Energy Storage System (BESS) partners in 2024, representing a 33% increase compared to the previous year.

Segmental Insights

The Cathode segment is anticipated to register the fastest growth in the Global Lithium-ion Battery Market, driven by the intensifying demand for electric vehicles. Since the cathode is the decisive factor for battery energy density and vehicle range, automotive manufacturers are prioritizing its development to ensure superior performance. This trend is reinforced by rigorous environmental mandates from organizations like the European Commission, which compel the automotive industry to reduce carbon emissions through electrification. Accordingly, the necessity for efficient, high-performance energy storage solutions ensures that the cathode segment remains at the forefront of market expansion.

Regional Insights

North America maintains a leading position in the Global Lithium-ion Battery Market driven by the surging adoption of electric vehicles and large scale grid energy storage projects. This dominance is reinforced by extensive government incentives focused on establishing a sustainable domestic supply chain. The United States Department of Energy plays a pivotal role by funding initiatives to accelerate battery production capabilities and research. Furthermore, the Environmental Protection Agency enforces strict emission regulations that compel industries to transition toward electrification. These combined regulatory efforts and a strong industrial base ensure the region remains at the forefront of global market development.

Recent Developments

• In February 2025, LG Energy Solution secured a strategic investment of $1.5 billion from Toyota to support operations at its battery manufacturing plant in Lansing, Michigan. This development occurred after the facility's previous joint venture structure was realigned, allowing the automaker to strengthen its supply chain for electric vehicle batteries in North America. The collaboration highlighted the intensifying competition within the Global Lithium-ion Battery Market as major automotive companies sought to secure stable access to high-quality lithium-ion cells. The investment ensured the viability of production lines scheduled to supply battery modules for the automaker's expanding lineup of electric vehicles.
• In October 2024, Contemporary Amperex Technology Co., Limited (CATL) launched the Freevoy Super Hybrid Battery, a new product designed specifically for plug-in hybrid and extended-range electric vehicles. This innovative lithium-ion battery solution featured a pure electric range of over 400 kilometers and supported 4C superfast charging capabilities. The introduction of this technology addressed the "range anxiety" often associated with new energy vehicles and signaled a shift toward higher capacity standards in the Global Lithium-ion Battery Market. The company confirmed that the battery incorporated advanced sodium-ion technology to ensure reliable discharge performance even in extreme cold environments.
• In September 2024, Panasonic Energy announced the commencement of mass production for its 4680 cylindrical automotive lithium-ion batteries at its Wakayama factory in Japan. This event marked a major milestone in the Global Lithium-ion Battery Market, as the new cell format offered five times the capacity of the previous 2170 models, significantly enhancing electric vehicle driving ranges and reducing manufacturing costs. The company also implemented eco-friendly production methods, utilizing renewable energy sources such as solar and wind power to achieve virtually zero carbon emissions at the facility. This strategic move aimed to meet the growing global demand for high-performance electric vehicle batteries.
• In March 2024, Samsung SDI unveiled a comprehensive roadmap for the mass production of all-solid-state batteries during an industry exhibition in Seoul. The company confirmed its preparations to manufacture next-generation batteries with an industry-leading energy density of 900 watt-hours per liter by 2027. This development represented a significant breakthrough in the Global Lithium-ion Battery Market, as the new solid-state technology promised superior safety and performance compared to conventional lithium-ion cells. The manufacturer highlighted that its pilot production lines were fully operational and that supply chain management processes were being established to support the commercialization of this advanced energy storage solution.

Key Market Players

• Panasonic Corporation
• Samsung SDI Co., Ltd.
• LG Energy Solution Ltd.
• Contemporary Amperex Technology Co. Limited
• BYD Company Limited
• Tesla, Inc.
• Toshiba Corporation
• A123 Systems LLC

By Type	By Power Capacity	By Voltage	By End User	By Region
Lithium cobalt oxide (LCO) Lithium iron phosphate (LFP) Lithium Nickel Cobalt Aluminum Oxide (NCA) Lithium Manganese Oxide (LMO) Lithium Titanate (LTO) Lithium Nickel Manganese Cobalt (LMC)	0-3 000 mAh 3 000-10 000 mAh 10 000-60 000 mAh 60 000 mAh and above	Upto 12V 12V-36V and Above 36V	Consumer Electronics Automotive Aerospace Marine Medical Industrial Power Telecommunications and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Lithium-ion Battery Market, By Type:

• Lithium cobalt oxide (LCO)
• Lithium iron phosphate (LFP)
• Lithium Nickel Cobalt Aluminum Oxide (NCA)
• Lithium Manganese Oxide (LMO)
• Lithium Titanate (LTO)
• Lithium Nickel Manganese Cobalt (LMC)

• Lithium-ion Battery Market, By Power Capacity:

• 0-3
• 000 mAh
• 3
• 000-10
• 000 mAh
• 10
• 000-60
• 000 mAh
• 60
• 000 mAh
• and above

• Lithium-ion Battery Market, By Voltage:

• Upto 12V
• 12V-36V
• and Above 36V

• Lithium-ion Battery Market, By End User:

• Consumer Electronics
• Automotive
• Aerospace
• Marine
• Medical
• Industrial
• Power
• Telecommunications
• and Others

• Lithium-ion 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