Electric Vehicle Battery Market Size, Share, Growth, Trends, and Global Industry Analysis: By Battery Type (Nickel Metal Hydride Battery, Lead Acid Battery, and Lithium ion Battery), By Propulsion Type (Hybrid Electric Vehicle, Battery Electric Vehicle, and Plug-in Hybrid Electric Vehicle), By Vehicle Type (Commercial Vehicle, Passenger Car, and Two Wheeler) and Region Forecast 2020-2031

Electric Vehicle Battery Market size was valued at US$ 29.38 billion in 2024 and is expected to reach US$ 90.83 billion by 2031, growing at a significant CAGR of 17.5% from 2025-2031. The market has been divided into lead-acid, lithium-ion, nickel-metal hydride, sodium-ion, and other battery types. In 2018, the lithium-ion sector had the biggest market share. Lithium-ion batteries are employed in situations where lightweight and great energy density are required. Because of their high energy density per weight, these batteries are frequently employed in automotive applications, including electric and hybrid vehicles. The availability of adequate EV charging infrastructure is critical for the adoption of e-mobility and speaks well for lithium-ion battery sales growth. Lead-acid batteries are one of the most cost-effective battery types for higher-power applications where weight is not an issue.

Furthermore, considering the high expenses of mining and processing lithium, as well as the limited supply of lithium, lead-acid batteries may be a better option than lithium-ion batteries. Lead-acid batteries can also be recycled and repurposed by being melted. Battery makers are focusing on the development and commercialization of sodium-ion batteries in order to find a replacement for lithium-ion batteries. The costs of materials for sodium-ion batteries are often lower than those for lithium-ion batteries. As a result, as part of their attempts to cut total costs while enhancing vehicle range and energy density, vendors are focused on sodium-ion batteries.

The market has been divided into two categories based on propulsion: battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) (PHEV). In 2020, the BEV segment led the market, and it is expected to continue to do so over the forecast period. The PHEV segment, on the other hand, is expected to grow at the fastest rate from 2021 to 2027. Due to fuel economy restrictions, the BEV market is projected to acquire a lot of traction in emerging economies.

Key Developments:

• In Jan 2025, Taiwan's Foxconn, renowned for manufacturing iPhones, is venturing into the electric vehicle (EV) market. Through its Foxtron venture with Yulon Motor, it unveiled the Model B EV hatchback at the Consumer Electronics Show. Foxconn aims to produce 40% of global EVs, investing nearly $1.3 billion in auto-related acquisitions over the past decade.
• In Nov 2024, Volvo Cars intends to acquire Northvolt's shares in their joint venture, Novo Energy, after Northvolt failed to meet its financial obligations. Established in 2021, Novo Energy aimed to produce batteries for electric vehicles at a Swedish gigafactory. Northvolt's financial struggles, including significant losses and production issues, have led Volvo to seek full ownership to protect its investment.
• In Sep 2024, Hyundai Motor Company and Kia Corporation have signed a Memorandum of Understanding with Exide Energy Solutions Ltd. to localize EV battery production in India, focusing on lithium-iron-phosphate (LFP) cells. This strategic partnership aims to equip future EV models in the Indian market with domestically produced batteries, marking a significant step in Hyundai and Kia's expansion in India's EV sector.