Global EV Battery Market Research Report: Forecast (2025-2030)

Market Definition

A rechargeable battery that is utilized to power several electric vehicles is termed an electric vehicle (EV) battery. It converts chemical energy contained within its active materials directly into electric energy, utilizing an electrochemical oxidation-reduction (redox) reaction.

Market Insights & Analysis: Global EV Battery Market (2025-30):

The Global EV Battery Market size was valued at USD 132.5 billion in 2023 & is projected to reach USD 495.6 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 14.4% during the forecast period, i.e., 2025-30. The industry growth is attributed to the increasing awareness related to environmental concerns and rising vehicular emissions leading to high air pollution levels across the globe.

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Recently, increasing urbanization & population growth have resulted in a higher demand for mobility solutions since consumers are opting for automobiles for personal mobility as well as commercial purposes. This extensive usage of vehicles is driving pollution levels & augmenting greenhouse gas emissions. With more vehicles on the road emitting harmful greenhouse gases, the concerns about global warming have been surging rapidly. As a result, consumers across the globe are shifting towards electric vehicles, consequently amplifying the Global EV Battery Market.

Additionally, nations across the globe have laid targets such as Net Zero 2070 (India), NDC Climate Plan 2025 (China), Net Zero 2050 (The UAE), etc., to reduce emission rates and focus on sustainable modes of transport. With a rising focus on GHG emission reduction and transport as a key sector prompting emission rates worldwide, the demand for eco-friendly mobility solutions is rising tremendously across the globe. As a result, automobile manufacturers are launching eco-friendly mobility solutions such as electric vehicles. This, in turn, is generating the demand for efficient and high-quality batteries for next-generation automobiles, ultimately enlarging market size.

Furthermore, the increasing innovations in battery technology are emerging as a significant driving force behind the market growth. The surging innovations in battery types like lithium-ion batteries, solid-state batteries, etc., have been increasing the battery storage capacities, drive efficiency, vehicle range, and cost-effectiveness of different battery solutions. This is resulting in gaining consumer trust in electric vehicles, thereby surging their adoption and propelling EV battery demand.

Thus, the introduction of fast-charging and long-lasting EV batteries would gain the attention of the top automobile companies and they would deploy these new batteries in their upcoming automotive models. Thus, generating the demand for these batteries for OEMs, further driving the market growth in the forecast years.

Global EV Battery Market Driver:

Rising Government Initiatives Promoting EV Adoption Among Consumers – The surging government policies & plans towards adopting alternative fuel vehicles worldwide are emerging as a significant driving factor in the EV battery industry. Conventional vehicles running on fossil fuels have been a pivotal source of GHG emissions. Moreover, the global CO2 emissions due to transportation activities grew by more than 250Mt CO2 to nearly 8Gt CO2 in 2022 making the transport sector a major contributor to overall emissions. Hence, official authorities across the globe have been trying to reduce the emission rates by providing subsidies, incentives, and tax reductions on electric automobiles. Countries like Thailand, India, Germany, the US, etc., have offered subsidies and financial incentives such as value-added tax (VAT) and exemptions from car registration taxes for higher EV Adoption. For instance:

• In 2022, under its Internal Revenue Code Section 30D, the US government stated that credit up to USD 7,500 is provided to consumers if they buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV).

These exemptions from taxes coupled with subsidies and incentives have resulted in the increasing adoption of electric vehicles due to increased affordability and cost-effectiveness for consumers. As a result, the demand for reliable battery solutions powering these electric vehicles is also increasing, which is surging the demand for electric vehicle batteries and propelling the growth of the Global EV Battery Market.

Global EV Battery Market Opportunity:

Emergence of Battery-as-a-Service Model – The Battery-as-a-service model is emerging as a concrete approach and solution to the high cost of electric vehicles worldwide. The model allows the consumers to subscribe or lease the electric vehicle battery separately from the vehicle itself, thereby reducing the overall cost of electric vehicles and increasing overall affordability. Moreover, the concerns about battery degradation and high replacement costs are also alleviated by the BaaS model, as the service providers handle all these maintenance and upgrade costs. Various automobile manufacturers, start-ups, battery providers, etc., have been providing this model under their offerings to reduce the cost burden on consumers prompting electric vehicle adoption globally.  

These models would be more economically viable for the consumers. As a result, they would continue to adopt the BaaS services. Along with it, this service model addresses the concerns about battery longevity, health, performance, degradation, replacements, etc., which would help to gain consumer trust and confidence. This, in turn, would create significant market opportunities in the Global Electric Vehicle Battery Market and surge market growth in forecast years.

Global EV Battery Market Challenge:

Raw Material Shortage for EV Battery Manufacturing – The limited production of essential minerals and the disruption in the supply chain caused by the geopolitical tensions between the nations are adversely affecting the production of EV batteries. Along with this, the costs of essential raw materials have also increased due to their limited supply. Therefore, to maintain the profit, the top companies have started selling these batteries at higher costs, making them inaccessible to the population with financial constraints.

Additionally, European countries are witnessing a slowdown in industrial activities due to the low economic growth & reduced consumer spending in this region. Therefore, the EVs' production in the region is on halt and registering a decline, which is consequently slowing down the demand for EV batteries from the direct manufacturing units, i.e., OEMs. Hence, the production delays in the automotive industry and the high price of the batteries due to constrained supply are limiting the Global EV Battery Market growth.

Global Electric Vehicle (EV) Battery Market Trend:

Increasing Adoption of Solid-State Battery Technology – The solid-state batteries use solid electrolytes instead of liquid or gel which helps in preventing leakage issues & fire hazards and offers safety to the consumers. These batteries offer high energy density on a single charge, providing more dependability & greater vehicle range in electric vehicles. Moreover, the charging speed of solid-state batteries is half the time of other lithium-ion batteries, which results in less time consumption for charging, further gaining consumer interest. Additionally, these batteries have longer life spans and better stability than other electric vehicle batteries. As a result, the need for solid-state batteries in electric vehicles is increasing and major EV manufacturers are introducing vehicles integrated with solid-state batteries. For instance:

• In 2024, Nissan announced to launch of solid-state battery-powered EVs by early 2029 under its Ambition 2030 strategy.

Thus, the proliferation in solid-state battery adoption by EV manufacturers is emerging as a significant market trend in the Global Electric Vehicle Battery Market, which is expected to upsurge overall market growth.

Global EV Battery Market (2025-30): Segmentation Analysis

The Global EV Battery Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2025–2030 at the global level. As per the analysis, the market has been further classified as:

Based on Battery Type:

• Lithium-Ion
• Lead-Acid
• Nickel
• Others (Sodium Ion, Solid-State, etc.)

Lithium-Ion holds a significant share of the Global EV Battery Market due to its cost-effectiveness and better reliability. These batteries have been incorporated in vehicles for many years as they are pioneers in the EV battery industry, making these battery types a popular choice for EV manufacturers. Moreover, lithium-ion batteries have been commercialized across the globe and are widely available, further increasing their adoption in manufacturing EV vehicles.

Furthermore, the rapid technological advancements and research & development in Lithium-Ion batteries, owing to their familiarity with parts, chemicals, nature, etc., are surging the innovation in their types and costs, thereby propelling their adoption. Also, companies like Toyota, Hyundai, Nissan, etc., extensively deploy these lithium-ion batteries in their passenger car models, which increases its demand & adoption in the market globally.

Based on Vehicle Type:

• Two-Wheeler
• Passenger Cars
• Commercial Vehicles
  • Vans/Light Trucks
  • Medium & Heavy Trucks
  • Buses
  • Off-Highway Vehicles

The Passenger Cars segment accounts for the maximum share of the Global EV Battery Market due to the rising sales and usage of electric cars for mobility. People around the globe are becoming more environment-conscious and seeking sustainable & eco-friendly transportation solutions to travel intercity & intracity. Moreover, cab-hailing companies, like Ola & Uber, are also looking for ways to reduce their carbon footprint. Owing to this, they are adding more EV cars to their fleet. The expansion of their EV passenger car fleet is generating the demand for EV batteries, supporting market growth. Moreover, to provide consumers with more adequate passenger cars, the leading companies are launching different Sedan, Hatchback, and SUV models, which would continue to propel the market growth.

Global EV Battery Market (2025-30): Regional Projection

Geographically, the Global EV Battery Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Asia-Pacific accounts for a substantial share of the Global EV Battery Market due to the burgeoning automotive manufacturing sector across the region. Asia-Pacific nations like China, Thailand, India, etc., boast robust automobile manufacturing facilities owing to which the demand for EV batteries is directly generated from the OEMs. Along with this, the individuals in these nations prefer the EVs due to the higher fuel & gasoline prices. This, extensive usage of EVs especially in China propels the demand for batteries for replacement, supporting market growth.

Moreover, automotive giants such as manufacturers, including Honda, Tata, Maruti Suzuki, etc., are laying plans to expand their production capabilities to export the vehicles to the North American and European Nations. Also, the expansion of the production facilities would further enhance the need for EV batteries, hence uplifting the Asia-Pacific EV Battery Market in the forecast years.

Global EV Battery Industry Recent Development:

• 2024: CATL launched a new EV battery pack with a range of about 1 million miles and a lifespan of around 15 years.
• 2024: LG Energy Solutions announced the opening of its new plant producing chargers for electric vehicle batteries in Fort Worth, Texas, the US.

Gain a Competitive Edge with Our Global Electric Vehicle (EV) Battery Market Report

• Global EV Battery Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global EV Battery Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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