Global Electric Vehicle Lithium-Ion Battery Market Report and Forecast 2024-2032

Global Electric Vehicle Lithium-Ion Battery Market Outlook

The global electric vehicle lithium-ion battery market size was approximately USD 45.23 billion in 2023. The market is assessed to grow at a CAGR of 22.7% between 2024 and 2032, reaching a value of USD 290.95 billion by 2032.

Key Takeaways

• In 2022, demand for automotive lithium-ion batteries surged to 550 GWh, a 65% increase from the previous year's 330 GWh. This was driven by a 55% rise in new registrations of electric passenger cars.

• In the year 2022, electric vehicle batteries accounted for approximately 60% of lithium demand, 30% of cobalt demand, and 10% of nickel demand.

• The demand for sustainable solutions has driven sales of electric vehicles with efficient lithium-ion batteries.

Recent discoveries of lithium reserves in the USA and India favour the market, helping meet the rising demand for EV batteries. Though lithium mining from clay and hard rock is a challenging process, it is expected to reduce the prices of batteries as lithium processing and refining plants grow in number.

Electric vehicles with a battery capacity of less than 100kWh permit people to travel long distances without suffering from range anxiety. This makes them considerably popular as they reduce the need for regular charging and are extremely suitable for use by city commuters and urban settlers. Hyundai Kona Electric, Tesla Model Y, Lucid Air Pure and Touring, Tesla Model 3, and Hyundai Ioniq 6, are among the latest electric vehicle models with a battery capacity of less than 100kWh that is gaining momentum on the roads of urban cities across the world.

According to the electric vehicle lithium-ion battery market analysis, the Asia Pacific is expected to account for a significant share of the market. In China, lithium mining and refining is done on a large scale to make electric vehicle batteries, making up as much as 70% of the global lithium-ion battery production. South Korea, Japan, and Australia also rank among the top ten countries for producing lithium-ion batteries, contributing nearly 5% to the globe’s production. This makes the Asia Pacific an important centre for lithium-ion battery production.

Europe produces 9% of the total lithium-ion batteries in the world and is another important contributor to the electric vehicle lithium-ion battery market growth. The region is witnessing a surge in adoption of electric mobility and increasing vehicle electrification in order to achieve its net zero emission targets. Most of its production facilities for lithium-ion batteries are concentrated in Hungary, Poland, Germany, Sweden, and the UK.

Market Segmentation

Global Electric Vehicle Lithium-Ion Battery Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Battery Capacity

• Less than 100 kWh

• 100 – 300 kWh

• 300 – 500 kWh

• More than 500 kWh

Market Breakup by Propulsion

• Battery Electric Vehicle

• Hybrid Electric Vehicle

• Plug-in Hybrid Electric Vehicle (PHEV)

• Fuel Cell Electric Vehicle

Market Breakup by Vehicle

• Passenger Car

• Commercial Vehicle

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Competitive Landscape

The market players are increasingly focusing on the production of electric vehicles with efficient lithium-ion batteries and are also improving their battery production capabilities to meet the rising global demand.

• Contemporary Amperex Technology Co., Limited (CATL)

• Panasonic Corporation

• LG Electronics

• Samsung Electronics Co. Ltd.

• BYD Motors Inc.

• SK Innovation Co

• CALB Group Co., Ltd

• Mitsubishi Electric Corporation

• Grinntech Motors & Services Pvt. Ltd.

• Others

Key Highlights of the Report