VINACHEM

EV Battery Market is projected to reach from USD 91.93 Billion in 2024 to USD 251.33 Billion in 2035, at a CAGR of 9.6%, according to a new report by MarketsandMarkets. The electric vehicle (EV) battery market is set for significant growth, driven by increasing EV adoption, advancements in battery technologies, and supportive government policies. As of January 2025, growing concerns over climate change and the push for reduced emissions are boosting demand for EVs. Investments in battery production are rising, with notable partnerships, such as General Motors selecting Vianode as its anode graphite supplier to improve EV battery performance and sustainability. Government incentives, like the US Department of Energy planning to grant over USD 3 billion in September 2024 for domestic EV battery production, further support the market. Additionally, advancements in battery chemistries and the growing demand for long-range, fast-charging EVs are enhancing market opportunities. The shift toward electric commercial vehicles is also driving demand for high-capacity batteries, further expanding the market.

Cylindrical battery form is expected to witness a notable growth during the forecast period.

The cylindrical form of EV batteries is projected to experience notable growth over the forecast period, driven by several factors such as superior durability, cost-effectiveness, and the efficient mechanical resistance they offer. Cylindrical batteries are the least expensive to manufacture compared to other EV battery formats, thanks to their robust casing that allows for better containment and resilience against both external and internal stresses. With the typical EV utilizing between 5,000 to 9,000 cylindrical cells—significantly more than pouch or prismatic cells—this format ensures higher reliability and performance. OEMs like Tesla and General Motors have already embraced cylindrical batteries for their vehicles due to these advantages. Furthermore, Mazda's announcement in January 2025 of a new module pack plant in Japan for cylindrical lithium-ion battery cells, sourced from Panasonic, signals a significant commitment to this technology. The plant is expected to have an annual production capacity of 10 GWh and will support Mazda's first battery electric vehicle (BEV) with a dedicated EV platform. In addition, LG Energy Solution's exclusive partnership with Aptera Motors Corp. in January 2025 to supply cylindrical batteries further emphasizes the growing role of this battery form in the global EV market. This combination of technological benefits and strategic partnerships is expected to drive robust growth for cylindrical EV batteries.

The negative electrode to lead the EV battery market during the forecast period.

The negative electrode, or anode, in electric vehicle (EV) batteries is anticipated to experience the largest growth over the forecast period due to its pivotal role in battery performance and efficiency. As the demand for electric vehicles continues to rise, the need for high-performance anode materials becomes increasingly critical. The anode is responsible for storing lithium ions during charging and releasing them during discharge, making its energy density a key factor in determining the overall energy capacity of the battery. Innovations in anode materials, such as silicon-carbon composites and nanocomposite tin/carbon/cobalt alloys, are enhancing energy storage capabilities and cycle life, which are essential for meeting consumer expectations for longer driving ranges and faster charging times.

Recent developments further underscore this trend. In January 2025, General Motors (GM) selected Vianode as its anode graphite supplier for EV batteries, aiming to enhance both performance and sustainability. Vianode's provision of high-quality, low-carbon anode materials is set to play a crucial role in the next generation of GM's electric vehicles. This partnership exemplifies the industry's shift towards more sustainable practices while simultaneously improving battery technology. As manufacturers focus on developing advanced anode materials that offer high energy density, long cycle life, and improved safety, the negative electrode is poised to become a central component in the evolving landscape of EV battery technology, driving significant growth in the market.

North America is expected to grow significantly during the forecast period

North America is poised for remarkable growth in the EV battery market, driven by cutting-edge R&D, innovative partnerships, and significant investments by major automotive and battery manufacturers. The region benefits from the presence of industry leaders such as Tesla, GM, Ford, and Stellantis, which are investing heavily in battery production facilities to meet the rising demand for electric vehicles. Recent developments underscore this momentum: In December 2024, the US Department of Energy approved a USD 9.6 billion loan to BlueOval SK, a Ford and SK On joint venture, for EV battery manufacturing. Meanwhile, Tesla is advancing its in-house battery technologies with plans to introduce four new versions to power future vehicles like the Cybertruck and robotaxi. Additionally, General Motors and LG Energy Solution extended their partnership in December 2024 to include prismatic cell development, part of GM's strategy to diversify its battery chemistries and form factors. Federal and state incentives, including tax credits, investments in EV infrastructure, and a focus on zero-emission freight and public transportation fleets, are further driving this growth. As OEMs expand their electric truck, van, and bus portfolios, the North American EV battery market is set to thrive.

Key Market Players EV Battery Industry:

Prominent players in the EV battery Companies include Contemporary Amperex Technology Co., Limited (China), BYD Company Ltd. (China), LG Energy Solution Ltd. (South Korea), CALB (China), and SK Innovation Co., Ltd. (South Korea). These companies offer various EV battery products and solutions and have strong global distribution networks. Companies are also actively launching new products and collaborating with other players to expand their market presence. For instance, in January 2025, SK On, a SK Innovation Co., Ltd. company, announced that it has signed a deal worth USD 1.8 billion with Nissan Motor Co., Ltd. (Japan) to supply batteries. SK On is set to supply batteries of 20 GWh capacity to Nissan's vehicle assembly plants in US from 2028.