EV Battery Pack Market Size - By Battery Chemistry (Lithium Iron Phosphate, Nickel Cobalt Aluminum, Nickel Manganese Cobalt, Lithium Manganese Oxide), By Battery Form, By Propulsion Type & Forecast, 2025 - 2034

EV Battery Pack Market Size

The global EV battery pack market was valued at USD 124.4 billion in 2024 and is estimated to grow at a CAGR of 12.8% from 2025 to 2034. The increasing adoption of emission regulations by the government to mitigate pollution alongside subsidies, tax incentives, and other benefits offered to EV manufacturers and buyers will facilitate greater adoption of battery packs. Moreover, developments in battery technologies, such as lithium-ion, solid-state, and nickel-cobalt-aluminum batteries, are intended to further increase energy density, lifespan, and charging speeds, thereby aiding in the market penetration of the products.
 

The evolving model range from small cars to large trucks and buses will increase demand for varied battery pack capacities and configurations. As per the IEA study, the portion of global EV registrations captured by China surpassed 60%. This was because of new electric vehicle registrations in China reaching 8.1 million, which is an increase of 35% relative to 2022. Furthermore, the adoption of electric vehicles is being propelled by the rising costs of fuel as well as the prevailing consumer attitude toward maintenance-free eco-friendly cars. This, in turn, is increasing the demand for battery packs.
 

Increasing automakers' investments in developing EV's by incorporating advanced components will create lucrative opportunities for the product growth. Tata Motors will team up with Octillion Power Systems of China to acquire battery packs consisting of 15.2Ah for their EVs in August 2024. The Indian automobile manufacturer, which presently has a range of EV models, will increase its offerings in the near future.
 

The Trump administration’s tariffs on Chinese EV battery parts will greatly affect the EV industry in the US. The tariffs may increase as high as 145%, which will increase costs for EV manufacturers who depend on Chinese battery materials. Moreover, the tariffs will block access to key minerals necessary for battery production, which may impede the U.S. clean energy transition.
 

EV Battery Pack Market Trends

• Growing prioritization of long driving ranges by consumers will push automakers to adopt advanced battery packs with high-energy-density cells and advanced battery management systems, driving the industry landscape. The expansion of EV charging networks and advancements in fast charging technology will reduce range anxiety among consumers, thereby improving EV adoption and supporting the growth of battery packs required to power them.
   
• Key players are coming up advanced materials and battery technology to improve their market presence. In November 2022, Hero Electric, India's leading electric two-wheeler manufacturer, partnered with Battrixx to develop indigenous lithium-ion battery packs. The partnership aims to supply 300,000 battery packs and chargers over the next 12 months. Furthermore, growing consumer awareness of environmental issues and a rising interest in clean transportation options will encourage car manufacturers to expand their EV offerings and invest heavily in battery technology.
   
• The implementation of government incentives and subsidies will additionally speed up the adoption of EV battery packs. The tax credits, rebates, and grants pertaining to purchases of EVs and the development of charging infrastructure will make the change easier for certain individuals and fleet operators, leading to business growth. Furthermore, the growing network of EV charging stations is mitigating range anxiety, one of the key barriers to EV adoption. The growing abundance and availability of charging stations greatly improve the practicality of owning and operating an EV, leading to business growth
   
• Eminent automaker players are expanding their reach to improve their product adoption by incorporating latest technology in the system. In January 2025, Mahindra launched a new EV manufacturing and battery assembly plant in Chakan, marking a significant stride in its EV strategy. The company plans to equip its upcoming Electric Origin SUV models with state-of-the-art INGLO battery packs, which are intended to provide a driving range of more than 500 kilometers.
   

EV Battery Pack Market Analysis

• The EV battery pack industry was valued at USD 88.6 billion, USD 107.8 billion and USD 124.4 billion in 2022, 2023 and 2024 respectively. The industry is segmented into lithium iron phosphate, nickel cobalt aluminum, nickel manganese cobalt, lithium manganese oxide and others based on battery chemistry
   
• The nickel cobalt aluminum segment is anticipated to reach more than USD 88 billion by 2034, on account of its lightweight property while delivering superior power output. The increasing demand for low-maintenance batteries that provide exceptional cycle life and stable performance over extended periods will boost the use of NCA technologies. Additionally, increasing requirement for fast charging batteries as EV charging infrastructure evolves to meet consumer expectations will stimulate the chemistry penetration.
   
• The nickel manganese cobalt segment is anticipated to grow at a CAGR of 12% through 2034, due to its high energy density compared to other battery chemistries, making it a preferred choice for EVs, where battery weight and space are critical.  Companies are also coming up with wide product line to boost product adoption. Turntide Lithium-Ion NMC Battery Pack in 44V and 52V configurations supporting air or liquid cooling was launched by Turntide Technologies in September 2023, offering increased power and performance for OEMs in commercial vehicles.
   
• Lithium iron phosphate segment is anticipated to value more than USD 72 billion by 2034, due to a combination of safety, cost, and performance benefits. Increasing demand for battery packs offering superior thermal and chemical stability, which enhances safety by reducing the risk of fire or explosion, even under harsh conditions, will foster the battery adoption. Furthermore, they enhance the life span of EVs and energy storage systems, as they can withstand over 4,000 charge cycles, which is more than the industry standard cycle life.
   
• Lithium manganese oxide is projected to expand at a CAGR of 14.5% through 2034, due to their unique balance of performance, safety, and cost. A primary benefit of LMO chemistry is its excellent thermal stability, which enhances battery safety, a critical concern for EV makers and simultaneously for consumers considering battery deployment. Furthermore, the urban mobility and stop-and-go driving patterns will significantly increase the appeal of LMO due to its fast charging capabilities.

• Based on battery form, the EV battery pack market is segmented into cylindrical, pouch and prismatic. The prismatic segment accounted for over 48.4% market share in 2024. Increasing demand for battery packs offering space efficient, allowing for better stacking and packaging within battery modules will foster business statistics.
   
• EV companies are forming partnerships to enhance the adoption of prismatic batteries adoption, driving the industry forecasts.  In August 2024, Tata Motors expanded its EV battery supply by partnering with Octillion Power Systems and establishing a 2 GWh battery pack facility in Pune. The 45 kWh Curvv EV variant will feature Octillion’s packs, built with 15.2 Ah cylindrical and prismatic cells from China’s EVE.
   
• The cylindrical batteries are set to grow at a CAGR of over 13% through 2034 on account of its superior thermal dissipation, allowing for even heat distribution, reducing the risk of thermal runaway and ensuring better safety of EVs. Rising demand for high energy density cells, enabling EV manufacturers to pack more energy into a smaller space will improve cylindrical form adoption.
   
• Increasing key players' investments in expanding cylindrical batteries to improve their adoption will bolster the business outlook.  In January 2025, Mazda announced that its new plant in Iwakuni City, will manufacture modules and packs of automotive cylindrical Li-ion battery cells. These cells will be sourced from Panasonic Energy, with the plant targeting an annual production capacity of 10 GWh.
   
• The pouch segment is expected to grow at a CAGR of over 12.7% up to 2034 due to their flexible design, lightweight structure, and high energy density. The growing demand for battery form offering superior packaging efficiency and can be shaped to fit tight or irregular spaces, allowing manufacturers to maximize energy storage within limited volumes will propel the pouch cells adoption. Additionally, their better thermal performance, as its large surface area allows for more effective heat dissipation, will foster product growth.

• The U.S. EV battery pack market was valued at USD 10.8 billion, 13.2 billion, and 15.4 billion in 2022, 2023 and 2024 respectively. As of 2024, North America holds more than 13.1% of the market share, which is expected to improve further by 2034.
   
• In the U.S. growing government subsidies and tax credits for EVs and renewable energy storage systems, including policies such as the Inflation Reduction Act of 2022 designed to provide incentives for domestic battery production and EV adoption will boost product demand. Presence of key automakers in the economy such as Tesla, General Motors, and Ford scaling and their investment in expanding EV manufacturing will create demand for battery packs.
   
• In Asia Pacific EV battery pack market is expected to reach more than USD 230 billion by 2034. China being the world’s largest EV producer, coupled with the presence of key battery pack companies such as BYD and CATL will complement the industry growth. For instance, in 2024, China recorded sales of more than 11 million electric vehicles, marking a 40% year-on-year growth and accounting for around 60% of global EV sales. Additionally, growing investments in developing cost-efficient battery pack production supported by advanced manufacturing technologies and economies of scale will further improve the business projections.
   
• In Europe EV battery pack market is expected to grow at a CAGR of 13% till 2034 on account of their strong push towards sustainability, supported by stringent government regulations and climate targets. Growing region's commitment to significantly reducing carbon emissions, including plans to phase out internal combustion engine vehicles by 2035. These regulatory frameworks will encourage automakers and consumers alike to shift toward electric mobility leading to product growth.
   

EV Battery Pack Market Share

• Top three players, including Panasonic, Samsung and blue line battery account for nearly 38.3% of the battery pack market. These businesses are heavily investing in R&D to develop next-generation battery chemistries. Advancements in solid-state batteries, lithium iron phosphate (LFP), and high-nickel cathodes are key areas of focus to improve energy density, reduce costs, and enhance battery life.
   
• Companies are adopting vertical integration strategies to control the entire supply chain. By managing raw material sourcing, cell manufacturing, and recycling processes, these players can ensure consistent quality and reduce costs. Key players are forming alliances with automakers, renewable energy companies, and government bodies, allowing companies to co-develop customized battery solutions, access new markets, and share R&D costs.
   

EV Battery Pack Market Companies

• Samsung, a growing South Korean company in battery pack market, posted quarterly revenue of USD 53 billion and USD 4.5 billion as operating profit in the quarter ended December 2024. In collaboration with GM, Samsung SDI is investing approximately USD 3.5 billion to construct a new EV battery cell manufacturing plant in Indiana, U.S. This facility is slated to commence operations in 2027, with an initial annual production capacity of 27 gigawatt-hours, potentially expanding to 36 GWh.
   
• Panasonic reported USD 56.8 billion in net sales in 2024, and USD 56 billion in 2023. The company supplies high-performance lithium-ion battery cells and packs, including 2170 and next-generation 4680 cells, from its Gigafactory in Nevada. Panasonic is also expanding its EV battery production capacity in North America, with new plants under development in Kansas and Oklahoma to meet growing demand.
   

Eminent players operating in the EV battery pack market are:

• FRIWO
• LG Energy Solution 
• Octillion Power Systems
• Panasonic
• PMBL Limited
• Rivian
• Rapport
• Samsung
• TOSHIBA
• VARTA
   

EV Battery Pack Industry News

• In January 2025, Aptera Motors formed a strategic partnership with LG Energy Solution and CTNS to accelerate the development of its solar electric vehicles. As part of the agreement, LG Energy Solution will supply 4.4 GWh of 2170 cylindrical battery cells exclusively from 2025 to 2031. CTNS will produce custom battery modules and packs based on Aptera’s unique designs. These components will be integrated into Aptera’s sEVs to boost efficiency and performance across its lineup.
   
• In August 2024, Tata Motors Ltd is broadening its battery sourcing strategy for electric vehicles (EVs) by collaborating with Octillion Power Systems India Private Limited. The newly launched Curvv coupe SUV will incorporate lithium-ion battery packs supplied by Octillion, which operates in both the U.S. and India. This collaboration represents Tata Motors’ first venture with an external battery supplier since the debut of its Nexon EV in 2020.
   

This EV battery pack market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “USD Billion” from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Battery Form

• Cylindrical
• Pouch
• Prismatic  

Market, By Battery Chemistry

• Lithium iron phosphate
• Nickel cobalt aluminum
• Nickel manganese cobalt
• Lithium manganese oxide
• Others

Market, By Propulsion Type

• BEV
• PHEV

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • France
  • Spain
  • UK
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • South Africa
• Latin America
  • Brazil
  • Argentina