Global Battery Market: Strategic Regional Developments

As per Inkwood Research, the global battery market is expected to grow with a CAGR of 16.45% during the forecast period of 2024 to 2032. The impetus behind this notable growth stems from the global shift towards sustainable transportation, like electric vehicles (EVs), necessitating cutting-edge batteries capable of faster charging and extended lifespans. 

These demands are further driving advancements in battery technology, coupled with factors such as the declining prices of batteries as well as incentives for electric vehicle adoption, especially in emerging economies. For example, as of April 2024, in India, electric two-wheelers will receive a maximum subsidy of INR 10,000 per vehicle, while electric three-wheelers are set to receive INR 50,000. Moreover, while lithium battery cell pricing plummeted by approximately 50%, reports indicate that the price of lithium-ion battery packs dropped 14% to a record low of $139/kWh, as of November 2023.

Battery Market - Inkwood Research

Strategic Initiatives to Strengthen Global Battery Market Foothold

Significant investments and strategic partnerships by key players in battery technologies across the globe are expected to have a positive impact on the market growth during the forecast period. For instance – 

  • In April 2024, BMW Group and Rimac Technology, a division of the Rimac Group, announced a partnership to jointly develop advanced high-voltage battery technologies. The battery tech is expected to debut in BMW Group vehicles by the latter half of this decade.
  • ExxonMobil and SK On, a prominent global EV battery manufacturer, signed a non-binding memorandum of understanding (MOU) in June 2024. The agreement sets the stage for a potential multiyear supply arrangement of up to 100,000 metric tons of Mobil™ Lithium from ExxonMobil’s Arkansas project. SK On plans to incorporate this lithium into its United States EV battery production, supporting ExxonMobil’s goal to supply lithium for about 1 million EV batteries annually by 2030 and bolstering the national EV supply chain.
  • In April 2024, Pure EV, an Indian electric two-wheeler manufacturer, revealed a collaboration with Pragmatic Design Solutions (PDSL), a UK-based engineering firm specializing in customized digital technology and engineering solutions. Together, they aim to develop a solid-state battery technology platform tailored for electric two-wheelers. Moreover, the partnership targets meeting the dynamic demands of consumers in both domestic as well as international markets.

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Regional Outlook: Global Battery Market Growth Trajectory

The global battery market is expected to record substantial growth driven by increasing demand for electric vehicles and renewable energy storage solutions. Key regions, including Europe, North America, and the Asia-Pacific, are witnessing significant investments in battery manufacturing infrastructure and advanced technologies, positioning them as pivotal players in shaping the future of energy storage worldwide.

Europe: Key Investment Insights

  • The United Kingdom’s government and major organizations have heavily invested in new battery production facilities and advanced technologies, driving market growth. For instance, Echion Technologies, based in Cambridge, raised £29M in its Series B round led by Volta Energy Technologies, scaling up production of its niobium-based battery materials. This marks Volta’s first European investment, highlighting Echion’s leadership in global energy storage.
  • Britishvolt, another UK startup, secured over $50 million from Glencore in 2022 to build a large-scale battery factory. This move has been pivotal for the United Kingdom’s shift to zero-emission electric vehicles. 
  • Italvolt, an Italian start-up, announced plans to construct a $4.27 billion electric vehicle battery manufacturing facility in the country. With an initial capacity set to reach 45 GWh upon completion, the first phase of the project is anticipated to be finalized by the end of 2024.

Asia-Pacific to Lead the Market with a 17.36% CAGR (2024-2032)

  • The increasing demand for electric vehicles is a major driving factor facilitating the growth of the Asia-Pacific battery market during the forecast years. Since 2009, China has consistently held its position as the world’s largest automotive manufacturing market. Each year, the nation produces over 32% of the world’s vehicles, exceeding the combined vehicle production of the European Union, the United States, and Japan. In August 2023, China experienced a significant rise in vehicle sales, with approximately 2.3 million passenger cars and 310,000 commercial vehicles sold, indicating an increase compared to the previous month.
  • The growth of the automotive industry, especially in developing nations such as India and Japan, further contributes to the adoption of electric vehicles in the region. Since a wide range of batteries is utilized in hybrid electric vehicles as well as electric vehicles, automotive batteries is set to be the fastest-growing application during the forecast period
  • Moreover, Barrel Energy signed a memorandum of understanding with Roshan Energy Technologies for developing and manufacturing lithium-ion batteries in India. Hence, such joint ventures and collaborations play an essential role in positioning the lithium-ion segment, under the technology category, as the key battery technology.

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North America to Dominate the Market by 2032

  • North America continues to remain one of the largest consumers of various types of batteries, with the region progressing with a significant CAGR of 16.42% between 2024 to 2032. Moreover, the integration of renewables with energy storage is set to present lucrative growth opportunities for the North America battery market over the upcoming forecast years.
  • In this regard, the United States, capturing the highest revenue share in North America, has undertaken considerable measures and investments to boost the production of advanced batteries. For instance, the United States Department of Energy issued notices of intent to provide an amount worth $2.91 billion for the expansion of energy industries, including energy storage and electric vehicles.
  • In 2022, researchers at the University of Texas at Austin, partially funded by the United States National Science Foundation, developed a stable sodium-based battery material. This new material can recharge as quickly as conventional lithium-ion batteries and offers the potential for higher energy output. As a result, these strategic investments and innovative research efforts are expected to drive substantial growth in the United States battery market during the forecast period.

While regional developments are integral to the overall global expansion, the problems associated with battery safety and recycling may hinder the global battery market growth. Hence, in order to overcome these limitations, major companies such as Duracell, Panasonic Corporation, and Samsung SDI Co Ltd, among others, are attempting to provide safer, more reliable, and high-performance battery technologies.

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    The secondary battery segment, under the type category, is set to progress with the highest CAGR during the forecast period, 2024 to 2032.

    Lead-acid battery, lithium-ion battery, sodium-sulfur (NAS) battery, nickel-zinc (NiZn) battery, nickel-cadmium (NiCD) battery, nickel-metal hydride (NiMH) battery, zinc-manganese dioxide battery, flow battery, small sealed lead-acid battery, and other technologies are analyzed in the global report.