Electric Vehicle Battery Market Outlook:
Electric Vehicle Battery Market size was valued at USD 81.41 billion in 2025 and is projected to reach USD 299.6 billion by the end of 2035, rising at a CAGR of 14.1% during the forecast period, i.e., 2026-2035. In 2026, the electric vehicle battery is assessed at USD 91.74 billion.
The rising adoption of electric vehicles globally is driving the need for more efficient and higher-capacity batteries. The increasing demand for EVs is a key driver of the electric vehicle battery market, as each new EV sold requires a high-capacity battery, making batteries essential to the expansion of the sector. According to a report by the International Energy Agency (IEA), EV sales reached over 17 million units in 2024 globally, reflecting the accelerating responsibility towards sustainable means of transport. This surge in electric vehicle adoption directly increases demand for EV batteries, compelling battery manufacturers to scale production, invest in modern advanced technologies, and expand global supply chains to support the surging global demand. The demand for EV batteries is predicted to increase from over 1 TWh in 2024 to over 3 TWh in 2030 in the STEPS.
Environmental concerns, government incentives, and advancements in vehicle performance are some key pointers driving the global demand for EVs. This surge encourages battery manufacturers to expand capacity, develop batteries for longer range and faster charging, and build new gigafactories to meet rising supply demands. Additionally, the electrification of two-wheelers, buses, and delivery vans is a huge factor in broadening the market reach. For instance, Tesla sold over 1,789,226 EVs in 2024, highlighting the rapid growth of the electric vehicle market. As a result, the demand for lithium-ion batteries is also rising, pushing battery makers to increase their production.
