Electric Vehicle Battery Market To Reach $198.86 Billion By 2030

June 2025 | Report Format: Electronic (PDF)

Electric Vehicle Battery Market Growth & Trends

The global electric vehicle battery market size is expected to reach USD 198.86 billion in 2030 growing at a CAGR of 22.2% from 2025 to 2030, according to a new study conducted by Grand View Research, Inc. Increasing government initiatives for reducing carbon emissions and promoting the adoption of electric vehicles (EVs) drive the market growth. Growing consumer interest in EVs owing to lower operating costs and environmental benefits boosts the product demand. Rising advancements in battery technologies and the development of batteries that give better range, enhanced performance, and faster charging times, safety, and reliability are further expected to boost the growth of the market. Lithium-ion batteries have become more efficient, reliable, and cost-effective, driving down the cost of electric vehicles.

These types of batteries are currently used in the majority of EVs and are expected to maintain their dominance during the forecast period. Several manufacturers, including Nissan Motor Corp. and Tesla Inc., have invested heavily in this battery technology. Furthermore, various companies are establishing battery manufacturing plants to produce batteries owing to the rising demand for EVs. For instance, in May 2022, Stellantis N.V., an automotive manufacturing corporation, and Samsung SDI Co., Ltd., a battery manufacturing company, signed definitive agreements to create an electric vehicle battery production plant in Kokomo, Indiana, U.S. The facility is planned to start operations in 2025 and is expected to have an initial production capacity of 23 GWh per year, with an aim to increase to 33 GWh over the next few years.

In addition, in November 2022, Canoo, a prominent high-tech mobility firm, announced the establishment of a battery module manufacturing plant at MidAmerica Industrial Park in Pryor, Oklahoma, U.S. as part of its expansion plan to increase manufacturing capabilities and job opportunities in the area. The outbreak of the COVID-19 pandemic severely impacted several economies. In addition, increased fuel prices owing to the Russia-Ukraine conflict are expected to prompt consumers to adopt electric vehicles considering the lower lifecycle cost of an electric vehicle as compared to internal combustion engine (ICE) vehicles, which is ultimately making more demand for electric vehicle batteries. Furthermore, aggressive investments in innovation and subsequent advances in battery technology are expected to create new opportunities for the growth of the EV battery market.

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Electric Vehicle Battery Market Report Highlights

The lithium-ion battery segment accounted for the largest share of 67.4% in 2024. The segment is also anticipated to grow at the highest CAGR during the forecast period.
The battery electric vehicle (BEV) segment held the largest market share in 2024. The segment is also anticipated to grow at the highest CAGR during the forecast period.
The cans energy drinks segment held a share of 92.5% of the U.S. revenue in 2024. Metal cans offer superior convenience, product protection, and sustainability that strongly appeal to consumers and manufacturers alike
The passenger cars segment dominated the market in 2024. The growing sales of electric passenger cars such as sedans, hatchbacks, SUVs, and others (including XUVs, station wagons, and minivans) continue to propel the segment's growth
Asia Pacific electric vehicle battery market led the global market with a revenue share of 51.8% in 2024, led by China, Japan, South Korea, and emerging markets like India.

Electric Vehicle Battery Market Segmentation

Grand View Research has segmented the global electric vehicle (EV) battery market report based on battery type, propulsion type, vehicle type, and region:

Electric Vehicle Battery Type Outlook (Revenue, USD Billion, 2018 - 2030)