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Lithium-Ion Battery Market Size By Chemistry (LFP, LCO, LTO, NMC, NCA, LMO), By Component (Cathode, Anode, Separators, Electrolytes, Aluminum Foil, Copper Foil, Others), By Application (Industrial, Automotive, Consumer Electronics, Energy Storage), 2023 - 2032

  • Report ID: GMI1135
  • Published Date: Jan 2023
  • Report Format: PDF

Industry Statistics

Lithium-Ion Battery Market size exceeded USD 52.5 billion in 2022 and is projected to expand at more than 16.5% CAGR from 2023 to 2032.

Increasing consumer preference for electric and hybrid vehicles will complement the demand for lithium-ion (Li-ion) batteries. Electric vehicles (EVs) have gained substantial momentum in recent years owing to the growing focus on sustainable transportation and zero-emission vehicles. Several governments are supporting the e-mobility movement with favorable subsidies and schemes encouraging consumers to switch to EVs. For instance, in November 2022, the Netherlands, and Sweden joined the cohort of seven countries consisting of the U.S., Canada, Israel, Australia, Germany, Norway, and New Zealand to transition their government-operated fleets to zero-emission vehicles.

Lithium-Ion Battery Market

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Surging production demand to restrain the industry outlook

The growing supply-demand gap could restrict the lithium-ion battery market growth to a considerable extent. Extensive R&D initiatives and innovations in Li-ion battery variants require manufacturers to ramp up production capacities. Moreover, due to ongoing shortages of raw materials, manufacturers are making investments in advanced and more sophisticated battery storage technologies. Several developing countries are experiencing a dramatic surge in EV demand, compelling Li-ion battery manufacturers to address the shortage of critical minerals and metals. However, the increasing number of initiatives by industry players to grow production capacities will help overcome the current limitations.

Higher adoption of separators for high-performance to accelerate Li-ion battery production

The separator component segment is expected to hold more than 3% of the lithium-ion battery market share in 2032. Separators act as a key component in Li-ion batteries separating the anode and cathode to prevent the risk of short circuits. They are essential in ensuring several performance parameters in batteries, such as safety, cycle life, as well as energy and power density. Among the myriad of advantages associated with separators, chemical stability, porosity, wettability, thermal stability, and thickness/strength have a notable impact on battery performance. The surging demand for next-generation Li-ion batteries will also influence the adoption of separators.

Rising demand for NCA batteries in EV manufacturing to drive industry growth

Lithium-Ion Battery Market Share By Chemistry

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Lithium-ion battery market valuation from the NCA chemistry segment crossed USD 5 billion in 2022. NCA chemistry-based Li-ion batteries refer to the composition of nickel, cobalt, and aluminum, and are extensively used in EVs with high voltage requirements. The growing preference for these components can be attributed to their high energy density and shelf-life as compared to NMC batteries. NCA batteries are also increasingly used in higher-end long-range variants of Tesla Model S, Model X, Model 3, and Model Y.

For instance, in February 2022, Sumitomo Metal Mining Co Ltd (SMM), a leading mining firm, announced plans to triple its capital expenditure on nickel and cathode materials output over the upcoming three years. This influx will help escalate the production of NCA cathode materials, used by Panasonic Corp to make Li-ion batteries for Tesla.

Growing preference for EVs to foster demand for Li-ion batteries

Europe Lithium-Ion Battery Market Size, By Application, 2022 (USD Million)


Market Size, 2022





Consumer Electronics


Energy Storage




The automotive application segment is poised to witness nearly 17% CAGR between 2023 and 2032. The rising awareness among consumers regarding the environmental impacts of internal combustion engine (ICE) vehicles powered by fossil fuels is driving the adoption of battery electric vehicles (BEVs), and hybrid electric vehicles (HEVs). Furthermore, the deployment of supportive government regulations and policies for empowering the EV sector will proliferate the demand for Li-ion batteries. According to the International Energy Agency (IEA), in Europe, sales of electric cars surged by 65% year-on-year in 2021 to more than 2 million. Countries such as Norway, Iceland, Sweden, the Netherlands, France, Italy, and Spain also account for significant EV demand in Europe, offering lucrative business prospects for Li-ion battery manufacturers.

Rapid influx of foreign EV manufacturers to boost Li-ion business in APAC

Global Lithium-Ion Battery Market, By Region

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Asia Pacific lithium ion battery market size is anticipated to surpass USD 100 billion by 2032. APAC is home to a massive automobile sector with increasing demand for personal vehicles across robust population countries including India, and China. Moreover, the surge in government efforts pertaining to affordable mobility solutions for middle-income groups is encouraging automakers as well as foreign EV manufacturers to enter the region. For instance, in November 2022, Stellantis announced that it cannot produce affordable EVs in Europe and is therefore eying lower-cost manufacturing environments in countries, such as India.

New joint ventures to propel competitive landscape of the lithium-ion battery market

Top companies operating in the Li-ion battery industry are Tesla, General Electric, Exide Technologies, BYD Company Ltd., Energon, Toshiba Corporation, Samsung SDI Co., Ltd., Panasonic Corporation, LG Chem, Duracell, Inc., A123 Systems, LLC, Hitachi Energy Ltd., Clarios, Koninklijke Philips N.V., Akku Tronics New Energy Technology Co., Ding Tai Battery Company Ltd., EaglePicher Technologies, LLC, Padre Electronics Co., Ltd., Lithium Werks, Saft, ProLogium Technology CO., Ltd., Energus Power Solutions, Ltd., Maxell, Ltd., EnerDel.

These participants are foraying into joint ventures and agreements to expand their business footprint and customer reach. For instance, in August 2022, Honda and LG entered a joint agreement for EV battery creation in the U.S. The JV is instituted to supply Li-ion batteries for Acura EV, and Honda models in the North American market.

Impact of the COVID-19 pandemic on the industry trends

The COVID-19 crisis resulted in massive supply chain disruptions, negatively affecting the lithium-ion battery market. It accelerated raw material shortages including cobalt, and nickel, which are crucial components used to manufacture Li-ion batteries. Owing to stringent lockdown impositions to curb coronavirus transmission, automobile production across the globe reduced dramatically, thus impacting the demand for battery metals. According to the report on the post-COVID-19 scenario of India’s energy & mobility sectors, EV production in India may experience delays due to the increasing focus on producing BS-VI. Meanwhile, the restricted import of Chinese components could introduce new challenges in EV manufacturing.

The lithium-ion battery market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2019 to 2032, for the following segments:

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Market Insights, By Chemistry

  • Lithium Iron Phosphate (LFP)
  • Lithium Cobalt Oxide (LCO)
  • Lithium Titanate Oxide (LTO)
  • Lithium Nickel Manganese Cobalt Oxide (NMC)
  • Lithium Nickel Cobalt Aluminum Oxide (NCA)
  • Lithium Manganese Oxide (LMO)

Market Insights, By Component

  • Cathode
  • Anode
  • Separator
  • Electrolyte
  • Aluminum Foil
  • Copper Foil
  • Others

Market Insights, By Application

  • Industrial
    • Military
    • Heavy Industrial Equipment
    • Medical
    • Marine
    • Others
  • Automotive
    • HEV
    • BEV
  • Consumer Electronics
    • Smartphones
    • Laptops
    • UPS Systems
    • Smart Cameras
    • Smart Watches
    • Smart Glasses
    • Smart Textiles
    • Activity Trackers
    • Others
  • Energy Storage

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

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Spain
    • Austria
    • Netherlands
    • Sweden
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Malaysia
    • Thailand
    • Philippines
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Iran
    • Egypt
    • Turkey
    • Morocco
    • South Africa
    • Nigeria
    • Algeria
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Chile
    • Colombia


Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The market size of lithium-ion battery crossed USD 52.5 billion in 2022 and is expected to record over 16.5% gains through 2032.

The NCA chemistry segment surpassed over USD 5 billion in 2022 owing to product benefits, such as high energy density and life cycle.

The Asia Pacific market size is poised to reach USD 100 billion by 2032 driven by the strong presence of a massive automobile sector in countries such as India, and China.

Tesla, General Electric, Exide Technologies, Energon, Toshiba Corporation, Panasonic Corporation, LG Chem, Lithium Werks, Saft, and EnerDel are some of the key manufacturers of Li-ion batteries.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 24
  • Tables & Figures: 1066
  • Countries covered: 34
  • Pages: 650
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