What is the global market size of Automotive Lithium-Ion Battery Market?

Global Automotive Lithium-Ion Battery Market was valued at USD 41.97 billion in 2021, and the market size is estimated to reach USD 134.49 billion by 2028, at a CAGR of 18.10% over the forecast period (2022-2028). Read More

Automotive Lithium-Ion Battery Market Size

Automotive Lithium-Ion Battery Market Insights

Automotive Lithium-Ion Battery Market size was valued at USD 48.19 Billion in 2023 and is poised to grow from USD 57.3 Billion in 2024 to USD 272.13 Billion by 2032, growing at a CAGR of 18.9% during the forecast period (2025-2032).

The rising number of passenger vehicles has become a major reason for carbon dioxide outflow leading to climatic concerns. Among all metals, Lithium is the lightest due to it charges faster and thus provides high power density, and longer battery life. Having the greatest electrochemical capability Lithium-ion batteries are better than Nickle Cadmium batteries and provide stability for a longer time.

Lithium-Ion batteries have the highest energy density of any current battery technology, with energy densities ranging from 100-265 Wh/kg to 250-670 Wh/L. Moreover, Li-ion battery cells are capable of delivering up to 3.6 Volts which is thrice Nickle Cadmium battery or Nickle -Metal Hybrid Battery. Owing to these characteristics these are very low maintenance batteries and provide longer battery life without regular cyclic scheduled charging. They are capable of inducing an adequate amount of current for appliances that require high power to run. In Lithium-ion batteries, a small amount of low-Self -discharging rate is around 1-2% per month. Along with this they are con as toxic as Nickle Cadmium as cadmium is not present in these and the disposal of batteries could be easier. These factors are contributing to replacing Nickle Cadmium batteries and it is finding its application in a wide range of applications such as electric cars. Being environmentally friendly and not contributing to CO2 progression, several government initiatives are being taken to promote Lithium-Ion Batteries in Automotive, further fueling the global automotive Lithium-Ion battery market growth.

US Automotive Lithium-Ion Battery Market is poised to grow at a sustainable CAGR for the next forecast year.

FAQs

The global automotive Lithium-Ion battery market is fairly concentrated, with a few big and medium-sized market participants accounting for a significant portion of market revenue. Manufacturers and suppliers of raw materials are essential to the market. Joint ventures and mergers and acquisitions are two of the main tactics used by market companies to increase their market share. For instance, in March 2022, Exide Technologies operates in China through its joint venture with Shenyang Dongbei Storage Battery Co. This helps in the mass production of automotive batteries in the market. 'Contemporary Amperex Technology Co. Limited (CATL) (China) ', 'LG Energy Solution (South Korea) ', 'Panasonic Corporation (Japan) ', 'BYD Company Ltd. (China) ', 'Samsung SDI Co., Ltd. (South Korea) ', 'SK Innovation Co., Ltd. (South Korea) ', 'Toshiba Corporation (Japan) ', 'A123 Systems LLC (US) ', 'GS Yuasa Corporation (Japan) ', 'Johnson Controls International plc (Ireland) ', 'Envision AESC Group Ltd. (Japan) ', 'Farasis Energy, Inc. (China) ', 'CALB (China Aviation Lithium Battery) (China) ', 'EVE Energy Co., Ltd. (China) ', 'Northvolt AB (Sweden) ', 'Saft Groupe S.A. (France) ', 'Sila Nanotechnologies Inc. (US) ', 'QuantumScape Corporation (US) '

Rise in demand for plug-in vehicles, to boost global automotive Lithium-Ion battery market

A rise in acceptance and awareness among individuals of battery-run vehicles is expected to project market growth. EV manufacturers such as Daimler AG, Ford motors company, and Renault group of companies are rapidly increasing investments in the EV car segment to at cart more buyers. As Ford Motors company had invested about USD 300 Million for a Giga factory for increasing the production capacity of an electric vehicle. This in return increases competition and will entice employment of automotive lithium-ion batteries.

In 2021, the Asia Pacific region dominated the global automotive Lithium-Ion battery market, accounting for a sizable revenue share. China has banned traditional fossil fuel-powered scooters from all of its major cities in an effort to reduce pollution, which has raised the country's e-scooter sales. As Asia Pacific has grown as a key global manufacturing hub, the use of tools powered by lithium-ion batteries has increased. The region also has the most population in the entire world. As a result, consumer electronics that rely on lithium-ion batteries to work, such as mobile phones and laptop computers, are selling well throughout the Asia Pacific area. The rising market for electric vehicles in Asia Pacific countries such as China and India are one of the primary factors driving up demand for lithium-ion batteries.