Global Lithium-ion Battery Market Trends, Forecast Report 2025-2037
Lithium-ion Battery Market size was over USD 67.34 billion in 2024 and is anticipated to exceed USD 618.55 billion by the end of 2037, growing at over 18.6% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of lithium-ion battery is evaluated at USD 77.36 billion.
The global market is experiencing strong growth, driven by the rising demand for EVs, portable electronic devices, and renewable energy storage solutions. According to the IEA Global EV Outlook 2024, automotive lithium-ion battery demand expanded by nearly 65% to 550 GWh in 2022, in comparison to about 330 GWh in 2021. The growth was primarily due to a rise in electric passenger car sales, with new registrations growing by 55% in 2022 relative to 2021.
Key trends shaping the market include advancements in battery chemistry for higher energy density, faster charging capabilities, and longer life cycles. There is also a significant push toward establishing sustainable supply chains, including recycling initiatives and the development of alternative materials to reduce dependency on scarce resources such as cobalt. Overall, the market is evolving rapidly, with innovation and sustainability at its core.
Lithium-ion Battery Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing demand for smartphones: The surging global demand for smartphones is a significant driver of the market. According to an article posted by the IBEF in January 2025, India has become the second-largest manufacturer of smartphones, with more than 200 manufacturing sites operating in the country. The proliferation of advanced features in smartphones, such as high-resolution cameras, 5G connectivity, and powerful processors, necessitates batteries that can support higher power consumption without compromising device portability.
- Growing government initiatives: Policies aimed at reducing carbon emissions and promoting sustainable energy solutions have led to substantial investments renewable energy storage systems which heavily rely on lithium-ion batteries. According to PIB, September 2023, India aims to reduce CO2 emissions by 1 billion tons and carbon intensity below 45% by 2030, and finally, a Net-Zero emission target by 2070. Similar government initiatives worldwide are propelling the market forward.
Challenge
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Environmental hurdles: One of the main issues is the concern over the environmental impact of lithium extraction, handling, and disposal, as well as the production process itself. Additionally, the carbon footprint associated with battery manufacturing pressures companies to adopt cleaner technologies and renewable energy. Lack of efficient recycling infrastructure further compounds sustainability issues, prompting the industry to invest in circular economy.
Lithium-ion Battery Market: Key Insights
| Report Attribute | Details |
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
18.6% |
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Base Year Market Size (2024) |
USD 67.34 billion |
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Forecast Year Market Size (2037) |
USD 618.55 billion |
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Regional Scope |
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Lithium-ion Battery Segmentation
Type (Lithium Nickel Manganese Cobalt Oxide (LI-NMC), Lithium Iron Phosphate (LFP), Lithium Cobalt Oxide (LCO))
The lithium cobalt oxide segment in lithium-ion battery market is estimated to hold 34.4% share by 2037 due to its high energy density and stable performance, making it ideal for compact consumer electronics such as smartphones and laptops. According to OEC April 2025, Cobalt Oxides and Hydroxides registered a global trade worth USD 692 million in 2023. Despite the emergence of alternative chemistries, it remains prevalent in applications where size and energy efficiency are paramount.
Component (Cathode, Anode, Electrolyte, Separator)
The cathode segment in the lithium-ion battery market is expected to dominate a significant share during the forecast period, led by a worldwide trend toward electric mobility. This has led to a rise in demand for cathode materials that provide high performance, improved energy density, and longer lifespans to meet the increasing demand for electric vehicles. Furthermore, cathodes are more cost-effective in comparison to traditional cobalt.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Component |
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Capacity |
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Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Lithium-ion Battery Industry - Regional Synopsis
APAC Market Forecast
Asia Pacific lithium-ion battery market is expected to dominate 48% share by 2037. The growth can be attributed to increased sales of EVs in the region. According to the IBEF 2025, more than 50% of three-wheelers, nearly 5% of two-wheelers, and 2% of cars bought in 2024 in India are electric vehicles. Furthermore, the Department of Science and Technology, India, launched a project named Design and Development of Lithium-Ion Batteries and Demonstration of 1.5 KWh battery pack for EV Application in a time period of 2024-2037, with an investment of USD 217261.50. Similar projects in other countries, including Japan, China, and South Korea, are expected to boost the region’s growth.
China market is also significantly dominated by the rising number of EVs in the country. According to the IEA Global EV Outlook 2024, China registered 8.1 million new electric cars in 2023, increasing by 35% in comparison to 2022. It is anticipated that China will continue to be the largest electric car market globally. Hence, lithium-ion companies are projected to invest heavily in China in the upcoming years, owing to rising demand for consumer electronics from the growing middle-class population.
North America Market Analysis
North America market is predicted to witness a significant growth rate by 2037. Expansion of renewable energy storage solutions and supportive government policies are boosting the region’s growth. Companies in the region are investing in domestic manufacturing to enhance energy security and reduce reliance on foreign supply chains. For instance, in March 2022, Stellantis N.V. and LG Energy Solution signed a joint venture for the first large-scale lithium-ion battery production plant in Canada, with an investment of USD 4.1 billion.
With infrastructure in place, the U.S. has a competitive advantage in terms of production capacity and technological advancements. The U.S. Department of Energy 2022 selected 12 lithium-based projects with an investment of USD 1.6 billion from the 2022 U.S. Bipartisan Infrastructure Law, intending to support new commercial-scale domestic facilities to extract and process lithium, manufacture battery components, recycle batteries, and develop new technologies to increase U.S.
Companies Dominating the Lithium-ion Battery Landscape
- Seimens
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Lyten, Inc
- Yoshino Technology
- Ascend Elements
- Ola Electric
Companies in the market are adopting strategies such as investing heavily in research and development to improve battery efficiency, energy density, and lifecycle, while simultaneously focusing on cost reduction through advanced manufacturing techniques and economies of scale. Additionally, many are diversifying into battery recycling and second-life battery applications to create sustainable ecosystems and meet tightening environmental regulations. Some of the prominent players of the market are:
Recent Developments
- In September 2024, Panasonic Energy Co., Ltd. announced mass production of the 4680 cylindrical automotive lithium-ion batteries, revamping its Wakayama factory in Japan, intended to serve as the mother factory for the new cells.
- In February 2023, Ascend Elements announced a collaboration with Honda Motor Co. Ltd. to ensure a stable and sustainable supply of recycled lithium-ion battery materials for Honda's electric vehicles in North America.
- In November 2022, Ola Electric announced the establishment of a manufacturing plant, located in a new integrated plant near Bengaluru, India, for cells that power its lithium-ion (Li-ion) batteries and produce the company's e-scooters.
Author Credits: Dhruv Bhatia
- Report ID: 1313
- Published Date: May 06, 2025
- Report Format: PDF, PPT
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