EV Battery Cell and Pack Materials Market Key Trends, Disruptions & Strategic Imperatives

EV Battery Cell and Pack Materials Market Size, Key Players and Forecast

The EV battery cell and pack materials market is forecasted to expand from USD 25.81 billion in 2025 to USD 87.51 billion by 2034, growing at a CAGR of 14.53% from 2025 to 2034.

Introduction

The EV battery cell and pack materials market is a prominent sector of the electric vehicle industry. This market deals in manufacturing and distribution of materials used in EV batteries. There are various materials developed in this sector comprising of cathode materials (lithium, nickel, cobalt, manganese), anode materials (graphite, silicon), electrolytes, separators, and casing materials (aluminum, steel). These materials are used in manufacturing batteries for numerous types of vehicles including BEVs, HEVs, PHEVs and FCEVs. The growing sales of PHEVs in different parts of the world has boosted the market growth. This market is predicted to rise significantly with the growth of the battery industry around the globe.

• According to the International Energy Agency, around 0.6 million PHEVs were sold in U.S. during 2020 that increased to 1.3 million in 2023.

Highlights of the EV Battery Cell and Pack Materials Market

• Asia Pacific held the largest share of the EV battery cell and pack materials market due to the rising demand for hybrid vehicles in this region.
• Europe is expected to grow with a significant CAGR due to the growing emphasis on reducing CO2 emission in this region.
• The lithium-ion batteries segment held the highest share of the market due to the increasing adoption of these batteries in modern EVs.
• The battery electric segment led the industry due to numerous government incentives for purchasing BEVs.

Key Metrics and Overview

EV Battery Cell and Pack Materials: Figures and Stats

• According to the International Energy Agency, the demand of the electric vehicle battery in China was 417 GWh in 2023.
• According to the India Brand Equity Foundation, the lithium-ion battery is expected to reach 132 GWh by 2030.
• According to the Environmental Defense Fund, the U.S. light duty EV battery demand is projected to reach 539 GWh in 2027.
• According to the Eurobat Organization, the European EV lithium battery production is predicted to reach around 200-400 GWh by 2030.

Industry Leader Announcement

In July 2024, Philippe Brunet, the SVP of powertrain and EV engineering at Ampere announced that,” The work we’ve done with LG Energy Solution has enabled us to localize the entire value chain around LFP technology in Europe, and significantly increase its competitiveness, including with ‘cell-to-pack’. Innovation in batteries is ongoing, and we are working far upstream – in particular with our Innovation Battery Cell Laboratory to open in Lardy in 2025 – to engage our partners early on with us, on the major transformations to come.”

Geographical Insights

Asia Pacific held the largest share of the EV battery cell and pack materials market. The growth of this region is attributed to the rising focus on reducing emission in the environment. Also, the government of several countries such as China, India, Japan and some others are providing incentives for purchasing EVs, thereby contributing to the industrial expansion. Moreover, the presence of various EV companies coupled with technological advancements in battery manufacturing is driving the market growth in this region.

Competitive Landscape

The EV battery cell and pack materials market is a highly competitive industry with the presence of several dominating players. Some of the crucial players in this industry consists of Samsung SDI, SK Innovation Co. Ltd., CALB, CATL, LG Chem, Panasonic Industry Co. Ltd., BYD, and some others. These companies are constantly engaged in developing components for EV batteries and adopting numerous strategies to maintain their dominant position in this industry.

• According to the annual report of SK Innovation, the revenue of the company in the 3rd quarter of 2024 was 17.66 trillion won that increased to 19.41 trillion won in the 4th quarter of 2024.

Market Segmentations

By Battery (Vehicle)

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

By Cell Material (Battery)

• Lithium-ion Battery
• Lead-Acid Battery
• Nickel-Metal Hydride Battery
• Ultracapacitors
• Sodium-ion Battery

By Pack Material (Battery)

• Lithium-ion Battery
• Lead-Acid Battery
• Nickel-Metal Hydride Battery
• Ultracapacitors
• Sodium-ion Battery

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa