Drone Battery Market Outlook:
Drone Battery Market size was estimated at USD 10 billion in 2025 and is expected to surpass USD 37.04 billion by the end of 2035, rising at a CAGR of 14% during the forecast period, i.e., 2026-2035. In 2026, the industry size of drone battery is assessed at USD 11.40 billion.
Commercial and defense drone adoption is driving demand for drone batteries, especially lithium-ion technology. The FAA estimates approximately 955,000 commercial drones and 1.82 million recreational drones in the U.S. commercial fleet by 2027, which is likely to create a need for more energy-dense batteries that allow higher use durations despite weight. In addition, the U.S. National Blueprint for Lithium Batteries estimates the overall lithium battery market will grow at a staggering rate over the next decade, with electric drones being one of the more applicable market analyses. The Carnegie Endowment October 2024 report, the cumulative investments reached USD 40.9 billion between Q2 2023 and Q2 2024, dedicated to battery manufacturing investment and predominantly in the rapid scaling of lithium-ion cell production and deployment. The present state of the battery race banks on closing the competitive gaps with China and clean energy power solutions.
Source: Carnegie Endowment
Developing raw materials, such as graphite, lithium, cobalt, and nickel, still has most sourcing happen in places other than the U.S. In particular, DOD is funding domestic graphite projects in Alaska and Alabama under the Defense Production Act to decrease reliance on China, which refines over 90% of all graphite mined globally. NREL/NAATBatt data shows there were 851 battery‐related facilities (a little less than 700 companies) in North America as of March 2024. Over 80 of those were raw material processing facilities, up from about 25 in 2020, indicating growth or commoditization, especially in upstream and midstream manufacturing. Import restrictions, including the U.S. COVID-related supply controls from 2020 and China's rare earth export limits, have created considerable trade disruptions.
