Battery Materials Market Size, Share, and Trends 2025 to 2034

Battery Materials Market Size and Forecast 2025 to 2034

The global battery materials market size accounted for USD 59.45 billion in 2024 and is expected to exceed around USD 103.96 billion by 2034, growing at a CAGR of 5.75% from 2025 to 2034. The rising demand for clean battery materials, surging investments in developing sustainable battery materials, and the increased global impact of conventional energy sources on health and environment are driving the growth of the sustainable battery materials market.

Battery Materials Market Key Takeaways

• Asia Pacific region has accounted for 43.14% of revenue share in 2024.
• By battery type, the lithium-ion battery segment has accounted for 47% revenue share in 2024.
• The lead acid segment has captured 36% revenue share in 2024.
• By application, the electronics industry segment has generated a 46% market share in 2024.

Asia Pacific Battery Materials Market Size and Growth 2025 to 2034

The Asia Pacific battery materials market size was exhibited at USD 26.16 billion in 2024 and is projected to be worth around USD 46.26 billion by 2034, growing at a CAGR of 5.87% from 2025 to 2034.

Asia Pacific captured the highest market share in 2024. Asia Pacific is the largest manufacturer of electric vehicles and consumer electronics. The presence of huge number of manufacturing facilities of various industrial, electronics, and automotive products in the region makes it the largest consumer of the battery materials. The rising government initiatives to boost industrialization have made Asia Pacific the manufacturing hub of the world. China is the largest producer and consumer of electric vehicles as China has abundant supply of lithium-ion. The presence of cheap factors pf production and favorable government policies has significantly attracted huge FDIs and the presence of large number of manufacturing facilities led to the dominance of this region in the global battery materials market.

North America is expected to witness significant growth rate during the forecast period. This is mainly attributed to the extensively rising demand for the electric vehicles and advanced consumer electronics among the population. High consumer awareness regarding the sustainabilit5y and environment protection, strict government regulations pertaining to the emissions from vehicles, and high disposable income of the consumers has led to the rapid growth of the North America battery materials market.

• In 2024, the U.S. Department of Energy conditionally agreed to provide up to $1.2 billion in financing to Novonix, an Australian battery materials firm, to establish a synthetic graphite facility in Chattanooga, Tennessee. 

Battery Materials Market Growth Factors

The demand for the battery materials is expected to grow at a significant rate during the forecast period owing to the rapidly growing demand for the electric vehicles across the globe. The rising government initiatives to reduce carbon footprint and reduce the emission of greenhouse gases to attain sustainability is fueling the adoption of the electric vehicles. The surging demand for the consumer electronics among the population and rising government efforts to make regulatory changes to boost the adoption of electric vehicles is the prominent factors that are significantly augmenting the growth of the global battery materials market. The rising preference for the rechargeable and lightweight batteries is playing a crucial role in the market growth. The rapidly boosting demand for the lightweight and rechargeable batteries is attributed to the rising adoption of the consumer electronics such as laptops, desktops, and smartphones, which extensively needs the lightweight batteries. The rising trend of miniaturization of the electronic gadgets is a major factor that boosts the demand for the lightweight batteries.

The surging investments by the manufacturers in the processing, mining, and manufacturing of the battery materials is expected to boost the production of batteries to meet the rapidly surging demand for the batteries across the globe. The rising awareness pertaining to the sustainably sourced battery materials, efficient disposal of wastes, and recycling of wastes are expected to boost the demand for the battery materials. The manufacturers are increasingly adopting the certifications such as EU-Batteries Directive, DOT, and PHMSA to ensure safety and quality of the batteries to lure the customers in the market. Furthermore, the rising adoption of the technologies such as Nano-filtration system, solvent extraction method, and rotary kiln electric furnace method are increasingly being adopted by the manufacturers to improve the efficiency and performance of the battery materials based on the requirements.

Market Scope

Market Dynamics

Driver

Surging Investments in Recycling and Development of Sustainable Battery Materials

Initiatives by various industries for recycling and developing sustainable battery materials, along with increasing investments and funding, are driving market growth. Advancements in manufacturing capabilities with streamlined workflows and supply distributions aid industries in reducing production costs and minimizing energy wastage.

• In March 2025, Battery X Metals completed the acquisition of the remaining 51% stake in Li-ion Battery Renewable Technologies Inc., aiming to develop a vertically integrated battery supply chain through critical battery metal exploration, material recovery technologies, and battery diagnostics solutions.

Material Insights

The cathode segment dominated the sustainable battery materials market share in 2024. Cobalt, nickel, and manganese are the most active elements in cathode materials. Nickel, primarily lithium nickel manganese oxide and nickel cobalt aluminum oxide, is now used to partially replace cobalt.

The anode segment, on the other hand, is predicted to develop at the quickest rate in the future years. The conventional current enters a polarized electrical device through an anode, which is an electrode.

• In December 2024, General Motors signed a multi-billion-dollar agreement with Norwegian battery materials producer Vianode to supply synthetic anode graphite starting in 2027. 

Battery Type Insights

The lithium-ion segment dominated the sustainable battery materials market share in 2024. Due to its color memory effect, high energy density, and low self-discharge, it is employed in portable electronic devices. It’s used in a variety of industries, including consumer electronics, industrial, and automotive.

The lead-acid segment, on the other hand, is predicted to develop at the quickest rate in the future years. The global demand for lead-acid batteries is increasing due to qualities such as ease of purchase, reliability, abuse tolerance, overcharging tolerance, and the capacity to deliver high currents.

• In January 2024, BYD began constructing its first sodium-ion battery plant in collaboration with Huaihai Group. This gigafactory aims to produce batteries for micro vehicles and scooters, indicating a diversification in battery technologies beyond lithium-ion.

Application Insights

Based on the application, the consumer electronics segment led the global battery materials market in 2024. The huge demand for a wide variety of consumer electronics among the global population has led to the growth of the consumer electronics segment. Changing lifestyle of the consumers, rising disposable income, technological advancements, and rising expenditure on the home improvement products are some of the major factors that are significantly boosting the demand for the various consumer electronic products across the globe. The rising adoption of the batteries in the consumer electronics and growing demands for various electronic devices is expected to boost the growth of this segment during the forecast period.

Automotive is expected to be the most opportunistic segment during the forecast period. The rising demand for the electric vehicles across the globe and extensive usage of batteries in the electric vehicles is the most prominent factor that drives the growth of this segment. The rising pollution levels and climate change issues have forced the government to switch to the more sustainable transport solutions. The rising reforms in the regulations to boost the adoption of the electric vehicles are expected to have a significant and positive impact on the growth of the market in the foreseeable future.

Recent Developments

• In May 2019, Umicore entered into a long-term agreement with Glencore for the supply of cobalt to the Umicore’s battery materials value chain
• In June 2020, POSCO Chemicals accelerated its manufacturing capacity for the anode materials by completing the second construction of anode materials facility in Sejong, South Korea

The various developmental strategies adopted by the key market players such as business expansion and agreement is expected to have a significant and positive impact on the global battery materials market in the forthcoming future.

Battery Materials Market Companies

• Celgard
• Hitachi Chemicals
• Umicore
• GS Yuasa Corp.
• Coda Energy
• Panasonic Corporation
• Envia System Inc.
• Duracell International Inc.
• GP Batteries international Ltd.
• Ford Motor Company
• Toda Kogyo

Recent Development

• In April 2025, China’s CATL launched a new brand for its sodium-ion batteries, Naxtra, on Monday and announced mass production will begin in December, alongside its second-generation fast-charging EV battery. CATL was the first major car battery manufacturer to introduce a sodium-ion battery in 2021. Sodium, unlike other materials, is affordable and plentiful, and its chemistry may help lower EV fire risks, according to experts. Naxtra’s first product will be a sodium-ion battery with 175 watt-hours per kilogram energy density, closely matching lithium iron phosphate (LFP) batteries widely used in EVs and grid storage systems.
• In January 2025, NEO Battery Materials Ltd., a cost-effective silicon anode material innovator enabling longer-lasting, fast-charging lithium-ion batteries, launched its new advanced high-performance silicon anode product, NBMSiDE P-300, offering breakthrough battery capacity. While maintaining a strong focus on electric vehicles and electronic devices, NEO is also strategically branching into the space and eVTOL sectors with solid-state battery applications. The expansion reflects NEO’s commitment to next-generation energy solutions. The company aims to position its technology across diverse markets demanding high-performance and durable battery systems.
• In January 2025, JSW MG Motor India partnered with LICO Materials to launch a new Battery Energy Storage System (BESS) that reuses batteries from MG ZS electric vehicles. The initiative, revealed on January 30, 2025, is the fourth under Project Revive and offers storage capacity options from 18kWh to 300kWh. Created with LICO Materials, a subsidiary of Epsilon Group, the system includes immersion oil cooling and smart thermal control for improved safety. With a lifespan four times longer than standard systems, it can cut operational costs by up to 60%. LICO developed three versions for residential, commercial, and industrial use, operational from -20°C to 60°C with a five-year warranty.

Segments Covered in the Report

By Material

• Cathode
• Anode
• Electrolyte
• Separator

By Battery Type

• Lithium-ion
• Lead acid
• Others

By Application

• Automotive
• Consumer Electronics
• Industrial
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa