Lithium-ion Battery Market Outlook:
Lithium-ion Battery Market size was over USD 134.8 billion in 2025 and is estimated to reach USD 887.8 billion by the end of 2035, expanding at a CAGR of 23.3% during the forecast timeline, i.e., 2026-2035. In 2026, the industry size of lithium-ion battery is assessed at USD 166.2 billion.
The international lithium-ion battery market is currently experiencing increased growth, which is significantly fueled by governmental sustainability initiatives, renewable energy storage, and a surge in electric vehicle adoption. According to an article published by OECD in 2025, electric car sales readily topped 17 million globally as of 2024, denoting an increase by over 25%. In addition, within the same year, 3.5 million cars were sold in comparison to 2023. Besides, China readily maintained its lead, with an increase in electric car sales by 11 million. Likewise, there has been an upsurge in sales by almost 40% and reached 1.3 million globally, which is close to the U.S.’s sales of 1.6 million electric vehicles. By the end of 2024, the electric car fleet have successfully reached nearly 58 million, which is 4% of the overall passenger car fleet, thereby making it suitable for the market’s growth.
Furthermore, the aspects of chemistry diversification, expansion of Gigafactory, the presence of circular and recycling economy, as well as energy storage systems are other drivers bolstering the market’s growth globally. As per an article published by the IEA Organization in 2025, the battery demand in the energy industry for both storage applications and electric vehicle batteries has reached the 1 TWh milestone as of 2024. This particular demand is largely driven by the growth in electric vehicle sales, since the electric vehicle batteries grew more than 950 GWh, which is 25% more than in 2023. Moreover, in comparison to 2023, the industry was particularly adopted by electric trucks, denoting a 75% growth as of 2024, and effectively reached 3% of international electric vehicle battery demand. Therefore, with continuous growth in battery demand, there is a huge growth opportunity for the market across different regions.
