Chicago, Jan. 05, 2026 (GLOBE NEWSWIRE) -- The global battery materials market size was valued at US$ 80.6 billion in 2025 and is projected to hit the market valuation of US$ 216.8 billion by 2035 at a CAGR of 10.4% during the forecast period 2026–2035.
The global energy transition is currently accelerating at a pace that requires an unprecedented volume of electrochemical storage. The momentum behind the global energy transition has reached a point where electrochemical storage is no longer optional—it’s essential. Strategic analysis of the battery materials market indicates that demand has shifted from predictable, linear growth to a rapid, exponential climb. By late 2024, total battery demand in the energy sector crossed 1 terawatt-hour for the first time in history, marking a milestone that redefines the boundaries of renewable integration.
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This surge compels every industry participant—manufacturers, policymakers, and investors—to revisit strategies around procurement, mineral security, and technological innovation. The following analysis provides a quantitative and forward-looking overview of the key forces shaping the market through 2025.
Key Findings in Battery Materials Market
| Market Forecast (2035) | US$ 216.8 billion |
| CAGR | 10.4% |
| Largest Region (2025) | Asia Pacific (47.69%) |
| By Battery Type | Lithium-ion (52%) |
| By Material | Cathode (Largest) |
| By Application | Electronics (45.28%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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17 Million Electric Vehicle Sales Force Battery Materials Market Players To Scale Production
Global electric vehicle (EV) sales hit 17 million units in 2024, setting a new record for the automotive industry. Forecasts suggest this momentum will persist, with 20 million units projected for 2025. China continues to lead the market, accounting for 11 million vehicles in 2024—a jump of 3.5 million units year-over-year. The country also exported 1.25 million EVs, leveraging cost-efficient lithium iron phosphate (LFP) batteries, while the European Union exported 800,000 units and produced 2.4 million vehicles locally during the same period.
Regional manufacturing realignment has become a strategic focal point for automakers. Companies are increasingly integrating local supply chains to cut logistics risk and comply with evolving trade regulations. Continuous production of passenger vehicles ensures sustained demand for high-nickel cathode materials, anchoring price stability across lithium and cobalt markets. For analysts, EV sales now serve as a critical barometer for tracking mineral supply and future investment needs.
Global Grid Storage Expansion Mandates Massive Lithium Iron Phosphate Procurement For Stability
Global grid storage capacity is expanding at an unprecedented rate. Annual installations are projected to reach 247 gigawatt-hours by 2025, supporting 92 gigawatts of power capacity. In 2024 alone, global grids integrated 200 gigawatt-hours of stationary storage and 70 gigawatts of operational capacity to balance renewable fluctuations. A striking example is Saudi Electric Company’s Bisha project, which deployed 2,618 megawatt-hours of battery cells. Procurement for 2026 is already underway, with 360 gigawatt-hours planned.
These large-scale projects are now the primary demand drivers for the battery materials market, exceeding traditional electronics use by a wide margin. The median capacity for grid-scale projects entering 2025 is 850 megawatt-hours. Because these installations demand high stability and long lifespans, lithium iron phosphate (LFP) chemistries remain the dominant choice. Multi-year supply agreements between utilities and producers offer pricing certainty and encourage capacity expansion—providing a stable foundation for the global materials supply chain.
Surging Extraction of Critical Minerals Secures Future Growth Within The Battery Materials Market
Critical mineral extraction has become the cornerstone of future battery supply. Lithium consumption surged to 210,000 metric tons in 2024, up from 180,000 the year before. A single 2.6 GWh energy storage project typically requires 1,700 tons of lithium, while related installations, like Bisha, consume around 3,000 tons of graphite. Global natural graphite output reached 1.5 million tons, accompanied by 210,000 tons of cobalt reserves and 2.2 million tons of nickel mined by 2024. Chile alone is on track to produce 390,000 tons of lithium by 2025.
Supply chain resilience now defines success in the battery materials market. Mining diversification reduces geopolitical exposure and ensures access to critical minerals like nickel sulfate for advanced cathodes. Graphite supply remains a pressure point as producers balance synthetic versus natural sources. Moreover, sustainable extraction practices have become a prerequisite for institutional investment. With improved tracking of mineral output, analysts can now forecast pricing trends with greater precision, enabling smarter capital allocation.
240 Active Gigafactories Accelerate Regional Material Processing To Meet Global Targets
Benchmark Mineral Intelligence reports more than 240 operational gigafactories across the world to-date in 2025, with 12.7 GWh of new capacity added recently. Global production capacity has entered a historic scaling phase. Over 300 gigafactories are now operational or under construction worldwide, collectively producing 867.8 GWh of cells during 2024. China leads with 110 active cathode material plants, while Europe continues its rapid buildout—19 out of 36 planned gigafactories are being developed in Germany, Hungary, and France. Notably, a German recycling facility now handles 15,000 tons of cathode scrap annually. Global supply chain output is projected to hit 1.6 TWh in 2025.
Localized material processing remains a cornerstone of the battery materials market, helping reduce emissions and production costs. European projects alone have mapped 1.2 TWh of capacity by 2030. With construction at its peak, automakers are racing to secure long-term access to regional supply. The next generation of plants incorporates advanced automation to optimize material yields and minimize waste. Proximity to major vehicle assembly hubs further strengthens competitiveness and vertical integration across the value chain.
Leading Corporate Capacity Expansions Define Competitive Edges In The Global Battery Materials Market
Corporate output in 2024 reflected high concentration among top-tier manufacturers. Gotion delivered 43 GWh of cells, while CALB reached 39.8 GWh and a cumulative total of 102.1 GWh by year-end. SK On followed closely with 36.4 GWh, and GEM Co. targets 100,000 tons of precursor production by 2025. Farasis Energy achieved 41.2 GWh, adding 13.7 GWh in the last year alone.
Strategic alliances underpin these capacity leaps. Leading suppliers are deepening ties with upstream miners to guarantee steady input flows. High-nickel chemistries continue to dominate the premium automotive market due to their superior energy density, while LFP investments serve growing stationary and mass-market sectors. Today, technological excellence is measured by material purity at gigafactory scale—those mastering precision manufacturing and logistics are capturing a growing share of the global market.
Breakthrough Energy Density Achievements Push Manufacturers To Refine High Performance Cathode Chemistries
Innovation accelerated throughout 2024, pushing battery density limits higher than ever before in the battery materials market. Condensed matter batteries entered production with 500 Wh/kg energy density, while laboratory breakthroughs reached 711.3 Wh/kg. Premium automotive NCM cells now average 300 Wh/kg, and lithium-rich cathodes deliver a remarkable 1,653.65 Wh/L. Experimental graphene aluminum-ion batteries have achieved 10,000 charging cycles, while ultra-fast charging systems restore full power in just six minutes. Emerging solid-state designs target 1,000 Wh/L benchmarks.
Such breakthroughs redefine the battery materials market by overcoming key constraints to EV adoption. Enhanced densities translate to lightweight designs and extended driving ranges, while improved durability cuts lifecycle costs for industrial fleets. Fast-charging technologies now rival traditional refueling speeds, reshaping consumer expectations. Meanwhile, manganese-based research offers new pathways toward cost-effective, high-performance cathodes. Collectively, these advances are setting the stage for the next generation of energy storage technologies.
Rising Battery Waste Volumes Force Recyclers To Standardize Circular Mineral Recovery Processes
Battery recycling has become a strategic imperative as end-of-life volumes soar. By 2025, 500,000 metric tons of batteries will reach recyclers, with 200,000 tons processed in the last quarter alone. The latest trade data shows 111 tons of black mass exported for reprocessing. North America now hosts 40 active recyclers, while Europe counts 50, supported by new regulations mandating 90% recovery rates for cobalt, copper, and nickel.
Circular solutions are now integral to a sustainable battery materials market. By late 2025, lithium recovery must reach 35% to meet regulatory thresholds. Recycled inputs are gaining value as greener alternatives to virgin mining. Advances in hydrometallurgical refining are ensuring recovered materials meet strict battery-grade standards, transforming black mass into a critical commodity. These developments are attracting capital investment and accelerating the creation of automated, high-efficiency recycling ecosystems worldwide.
Proliferating Public Charging Networks Catalyze Long Term Demand in the Battery Materials Market
Public charging infrastructure has grown into a cornerstone of EV adoption. By early 2024, global networks surpassed 3.1 million chargers, projected to reach 4.2 million by the end of 2025. Over 1.2 million slow chargers were added in 2024 alone, supported by expanding 350 kW ultra-fast stations across European highways. China leads with 2.4 million active chargers, while global fast-charger installations hit 600,000 units last year. Notably, Norway achieved a remarkable ratio of 10 EVs per charger.
Infrastructure expansion directly strengthens the battery materials market by reducing range anxiety and encouraging fleet electrification. High-voltage cathodes are essential to leverage next-generation ultra-fast charging systems. Governments and private investors alike are funding large-scale projects to extend charging access into cities and residential areas. This synergy between accessible infrastructure and robust battery technology continues to be a defining catalyst for sustainable electric mobility expansion.
Heavy Transport Electrification and Trade Tariffs Reshape Procurement Within The Battery Materials Market
Electrification is now penetrating the transport sector. Amazon operates over 5,000 electric delivery vehicles, each completing around 200 stops per route using high-cycle cathodes. Global electric truck sales doubled to 54,000 units in 2024, while mining companies plan to deploy 1,500 electric haul trucks by mid-2025. Emerging drone platforms have achieved three-hour flight durations powered by 400 Wh/kg batteries. Urban fleets—from buses to heavy-duty trucks—are fast adopting large 450 kWh packs, as seen with 1,200 electric buses added across Nordic countries.
Future technologies within the battery materials market include aluminum-ion prototypes demonstrating 100 Wh/kg performance, with early tests reaching 58 Wh/kg in one hour and 26 Wh/kg in six minutes. Innovative solid-state designs leveraging 150-micron lithium foils and zero-liquid electrolytes promise improved safety and fire resistance. However, a 145% tariff on Chinese imports is driving structural changes across procurement strategies. As technology and geopolitics converge, supply diversification is becoming as critical as energy density itself.
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Battery Materials Market Major Players:
- Albemarle Corporation
- Asahi Kasei Corporation
- BASF SE
- Entek International Ltd.
- Johnson Matthey
- Livent
- Mitsubishi Chemical Holdings Corporation
- Nichia Corporation
- Showa Denko K. K.
- Sumitomo Chemical Co. Ltd.
- Targray Technology International Inc.
- Umicore N.V.
- Other Prominent Players
Key Market Segmentation:
By Material
- Cathode
- Anode
- Electrolyte
- Separator
By Battery Type
- Lithium-ion
- Lead acid
- Others
By Application
- Automotive
- Consumer Electronics
- Industrial
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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