Electric Vehicle (EV) Batteries Global Market Report 2026

Electric vehicle batteries refer to rechargeable batteries utilized to power electronic vehicles, aligning with the clean energy initiative by eliminating the emission of harmful gases detrimental to the environment.

The primary types of batteries employed in electric vehicles include lithium-ion, lead-acid, nickel-metal hydride, sodium-ion, and others. Lithium-ion batteries, chosen for their enhanced safety and stability during movement compared to liquid li-ion batteries, are prominently utilized in electric vehicles. These batteries cater to two vehicle categories, namely passenger and commercial vehicles, and are available in two propulsion types, battery electric vehicles and plug-in hybrid electric vehicles.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the electric vehicle batteries market by increasing duties on imported cells, battery components, and precursor materials, which raises production costs and complicates global sourcing. The impact is most acute for lithium-ion cell manufacturers and pack assemblers as well as regions that import key materials notably Southeast Asia, Europe, and North America. These tariff pressures increase end-prices, strain supply chains, and accelerate timelines for localized production and material sourcing. Positively, tariffs are prompting investment in regional gigafactories, encouraging greater supply-chain resilience, and driving innovations in material substitution and cost-efficient manufacturing.

The electric vehicle batteries market research report is one of a series of new reports from The Business Research Company that provides electric vehicle batteries market statistics, including electric vehicle batteries industry global market size, regional shares, competitors with an electric vehicle batteries market share, detailed electric vehicle batteries market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle batteries industry. These electric vehicle batteries market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric vehicle (EV) batteries market size has grown exponentially in recent years. It will grow from $88.36 billion in 2025 to $107.62 billion in 2026 at a compound annual growth rate (CAGR) of 21.8%. The growth in the historic period can be attributed to rising adoption of passenger electric vehicles, development of lithium-ion manufacturing capacity, improvements in cell energy density and cost declines, supportive government incentives for electrification, growth in global EV charging infrastructure.

The electric vehicle (EV) batteries market size is expected to see exponential growth in the next few years. It will grow to $242.11 billion in 2030 at a compound annual growth rate (CAGR) of 22.5%. The growth in the forecast period can be attributed to expansion of gigafactories and localized cell production, increased demand for solid-state and next-gen batteries, stricter regulations on battery recycling and producer responsibility, growth in commercial EV fleets and heavy-duty electrification, scaling of battery-as-a-service and subscription models. Major trends in the forecast period include advances in high-energy-density cell chemistries, fast-charging infrastructure compatibility, growth of battery second-life and repurposing markets, vertical integration of battery cell manufacturing, emphasis on cell-to-pack and pack-level thermal management.

The rising sales of electric vehicles (EVs) are expected to drive the growth of the electric vehicle (EV) batteries market in the coming years. Electric vehicle sales refer to the number of battery electric vehicles and plug-in hybrid electric vehicles purchased by consumers for transportation. This growth is largely fueled by government policies and financial incentives, such as federal tax credits and state-level rebates, which reduce the upfront cost of EVs, making them more affordable and accessible to a wider range of consumers. Increasing EV sales boost the demand for advanced battery systems, as each vehicle requires a high-capacity lithium-ion battery pack, creating proportional demand for battery production and supply. For instance, in January 2024, the U.S. Department of Energy, a federal agency, reported that plug-in electric vehicle sales rose from 6.8% of all light-duty vehicle sales in 2022 to 9.1% in 2023, reflecting a 2.3 percentage point increase in market share. Therefore, the growing sales of electric vehicles are driving the growth of the EV batteries market.

Major companies in the electric vehicle (EV) battery market are developing technologically advanced products, such as lithium iron phosphate (LiFePO4) batteries, which offer superior safety, long cycle life, thermal stability, and high discharge rates. A lithium iron phosphate (LiFePO4) battery is a rechargeable lithium-ion battery recognized for its safety, thermal stability, long lifespan, and high power output, making it suitable for electric vehicles, renewable energy storage, and portable devices. For instance, in June 2024, Geely, a China-based automobile manufacturer, introduced the Aegis Short Blade Battery. This battery features an energy density of 192 Wh/kg and an impressive cycle life of up to 3,500 cycles, allowing it to power vehicles for approximately 1 million kilometers with minimal impact on range. With a service life of up to 50 years, it significantly enhances the longevity and residual value of used cars. The Aegis Short Blade Battery addresses the high internal resistance common in many long blade batteries by employing long, thin carbon nanotubes to create a highway for ion transmission, along with additives that improve film permeability for easier lithium ion movement between electrodes. As a result, the Aegis Short Blade Battery provides exceptional fast-charging capabilities, achieving 80 percent capacity in an average charging time of just 17 minutes and 4 seconds at a rate of 2.45 C, compared to the 26 minutes typically required for other long blade batteries with similar capacity, which charge at 1.61 C.

In January 2024, Allkem Limited, an Australia-based lithium producer, merged with Livent to form Arcadium Lithium plc, a leading vertically integrated lithium chemicals producer. Through this merger, the combined company aims to leverage its scale, resources, and complementary assets to meet growing industry demand, enhance operational flexibility, reduce costs, and accelerate long-term growth across the lithium value chain. Livent Corporation is a US-based lithium chemicals company specializing in high-performance lithium compounds for batteries, pharmaceuticals, and other industrial applications.

Major companies operating in the electric vehicle (EV) batteries market are LG Energy Solution Ltd, Samsung SDI Co. Ltd, SK Innovation Co. Ltd, Panasonic Corporation, Contemporary Amperex Technology Co. Ltd, BYD Co. Ltd, GS Yuasa Corporation, Tianneng Power International Ltd, SVOLT Energy Technology Co, Ltd, EVTronic, Britishvolt, Aceleron, Williams Advanced Engineering, Zenobe, Northvolt, Verkor, Italvolt, Fortum, ElecSys, Volkswagen, BMW, Groupe Renault, SAFT, AKOM, InoBat Auto, Ligier Group, Polaris Industries, Skoda Auto, Proterra, BMZ Inc, Microvast, Romeo Power, Quantumscape Corporation, Horwin, Byvin, HDK Electric Vehicles, Shandong Shifeng (Group), Speedway Electric, Eleksa EV, Melex Electrovehicles, Mazibuko Motor Company, El Nasr Automotive Manufacturing Company, Jet Motors

Asia-Pacific was the largest region in the electric vehicle batteries market in 2025. Western Europe was the second-largest region in the global electric vehicle batteries market share. The regions covered in the electric vehicle (EV) batteries market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the electric vehicle (EV) batteries market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric vehicle batteries market consists of sales of lithium-ion batteries, lead-acid batteries, nickel-metal hydride batteries, sodium-ion batteries, and other electric vehicle (EV) batteries. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Electric Vehicle (EV) Batteries Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses electric vehicle (ev) batteries market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for electric vehicle (ev) batteries ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The electric vehicle (ev) batteries market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Battery Type: Lithium-Ion; Lead-Acid; Nickel-Metal Hydride; Others
• 2) By Vehicle Type: Passenger Vehicles; Commercial Vehicles
• 3) By Propulsion: Battery Electric Vehicle (BEV); Plug-In Hybrid Electric Vehicle (PHEV); Hybrid Electric Vehicles; Fuel Cell Electric Vehicles.
• Subsegments:
• 1) By Lithium-Ion Batteries: Lithium Iron Phosphate (LiFePO4); Lithium Nickel Manganese Cobalt (NMC); Lithium Nickel Cobalt Aluminum Oxide (NCA); Lithium Manganese Oxide (LMO); Other Lithium-Ion Variants
• 2) By Lead-Acid Batteries: Flooded Lead-Acid (FLA); Absorbed Glass Mat (AGM); Gel Lead-Acid
• 3) By Nickel-Metal Hydride Batteries: Standard Nickel-Metal Hydride; Advanced Nickel-Metal Hydride
• 4) By Others: Solid-State Batteries; Flow Batteries; Other Emerging Battery Technologies
• Companies Mentioned: LG Energy Solution Ltd; Samsung SDI Co. Ltd; SK Innovation Co. Ltd; Panasonic Corporation; Contemporary Amperex Technology Co. Ltd; BYD Co. Ltd; GS Yuasa Corporation; Tianneng Power International Ltd; SVOLT Energy Technology Co, Ltd; EVTronic; Britishvolt; Aceleron; Williams Advanced Engineering; Zenobe; Northvolt; Verkor; Italvolt; Fortum; ElecSys; Volkswagen; BMW; Groupe Renault; SAFT; AKOM; InoBat Auto; Ligier Group; Polaris Industries; Skoda Auto; Proterra; BMZ Inc; Microvast; Romeo Power; Quantumscape Corporation; Horwin; Byvin; HDK Electric Vehicles; Shandong Shifeng (Group); Speedway Electric; Eleksa EV; Melex Electrovehicles; Mazibuko Motor Company; El Nasr Automotive Manufacturing Company; Jet Motors
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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