Fast Charge Lithium Ion Battery Market size was estimated at USD 11.1 billion in 2024 and is expected to surpass USD 41.8 billion by the end of 2037, rising at a CAGR of 11.7% during the forecast period, i.e., 2025-2037. In 2025, the industry size of fast charge lithium ion battery is evaluated at USD 12.4 billion.
Policies surrounding the lithium-ion battery supply chain are at the intersection of trade, national security considerations, and climate. The fast charge lithium ion battery market supply chain spans across the globe, but most of the critical inputs lie with a handful of countries, particularly the U.S. and China. Governments are keen on de-risking from China’s dominance, accelerating green transition, and reshoring in-house manufacturing capabilities. Recyclability, less charging downtime, and the long life cycle of fast charging batteries have largely benefited the global EV market. The overall lithium-ion battery demand in the EV sector is projected to reach 4.1 terawatt-hours (TWh) by 2030, and EVs are set to account for 40% of worldwide auto sales by 2030. This amounts to 40 million EVs and 20 million hybrids sold per annum.
Considering the typical power generated to charge EVs, the average EV releases a mere 150 grams of GHG per mile, which is approximately 230 grams per mile less than an average conventional passenger vehicle. This stark difference is equivalent to replacing 40 million vehicles with EVs and curbing GHG emissions by 395 billion pounds every year- a crucial step in achieving global decarbonization goals. According to the Center for Strategic and International Studies (CSIS), demand for legacy lithium ion and fast-charging lithium ion batteries for electric vehicles and stationary storage was valued at roughly 950 GWh in 2023, while global manufacturing capacity notably exceeded 2,600 GWh. China’s 2023 production capacity alone matched the global demand.
Globally in 2022, 60% of BEV batteries were made from nickel-manganese-cobalt (NMC) formulations, followed by 30% of lithium-iron-phosphate (LFP) components, and 8% of nickel-cobalt-aluminum (NCA). The ones with LFP cathodes in 2022 held a record-breaking 30% fast charge lithium ion battery market share. Around 95% of the LFP batteries were produced in China. LFP batteries are considered safer, with a longer life cycle, and charge faster than most of their counterparts. From 2018 to 2023, 64% of U.S. BEV sales comprised Tesla BEVs, and over 44% (two-thirds of those) were equipped with NCA batteries. In 2022, Tesla announced the integration of LFP batteries in its base Model Y and in 2023, Ford also announced its plans to begin using LFP batteries for its automobiles.
From 2018 to 2023, the U.S. cell and cell component imports used for parts of fast charging lithium ion batteries accounted for the largest share of U.S. battery input imports, valued at 74%. It increased to USD 7 billion in 2023 from USD 1.4 billion in 2018, a 340% surge. The top sources of these imports were China, South Korea, and Japan. Meeting U.S. goals under the umbrella of IRA requirements will require heavy investments in components and other upstream input production.
Considering this emerging landscape of the EV market, the U.S. is striving to expand its slice of the global battery sector through domestic content requirements and tax incentives. Canada is also pacing up with U.S. incentives, and providing subsidies to strengthen its battery market. The current oversupply situation is projected to spur the need for technological advancements and efficient deployment by undertaking several changes in economic and trade policies and in turn, gain a competitive edge and address gaps in the present fast charge lithium ion battery market scenario.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
11.7% |
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Base Year Market Size (2024) |
USD 11.1 billion |
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Forecast Year Market Size (2037) |
USD 41.8 billion |
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Regional Scope |
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Form Factor (Cylindrical, Pouch, Prismatic)
The cylindrical segment in fast charge lithium ion battery market is predicted to have a faster-growing revenue share during the forecast period of 2025-2037. As cylindrical batteries are known for their efficient heat dissipation and efficient durability, it has driven its popularity in electric vehicles and power tools where fast charging and high-power output are essential. For instance, in June 2024, CBAK Energy Technology, Inc. announced a technological development with its model 32140 battery, a large cylindrical lithium-ion battery mass produced at its Nanjing facility.
This advancement in technology has enabled the model 32140 large cylindrical battery to surge its fast-charging capability from the original 0.8C fast charging rate and a full charge in 75 minutes to a 1.8C fast charging rate and a full charge within just 35 minutes, attaining 1.25 times faster charging speed. Moreover, the battery's cycle life under discharge and high-current charge has doubled while improving the overall efficiency and durability of the product. CBAK Energy has filed a patent application for this new technology with the related authorities in China while anticipating imminent approval.
Chemistry (Lithium-ion, Lithium-ion polymer, Lithium-nickel cobalt aluminum oxide (NCA), Lithium-ion nickel magnesium cobalt oxide (NMC), Lithium-iron phosphorate (LFP))
Lithium-ion segment is projected to dominate fast charge lithium ion battery market share of over 58.7% by 2037. Lithium-ion batteries dominate electric vehicles and consumer electronics with high energy densities while supporting fast charging capabilities and longer run times. For instance, in July 2024, LG Energy Solution and Liontown Resources mutually agreed on a partnership meant to fortify their long-term collaboration in the worldwide lithium sector. The agreement covers the supply of high-quality lithium spodumene from Liontown’s Kathleen Valley project, and a downstream teamwork agreement to explore the feasibility of creating a lithium refinery that has the potential for long-term value creation.
Our in-depth analysis of the global fast charge lithium ion battery market includes the following segments:
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Capacity |
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Charging Speed |
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Applications |
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Form Factor |
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Chemistry |
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North America Market Analysis
North America in fast charge lithium ion battery market is expected to dominate around 38.6% revenue share by the end of 2037, owing to supportive government policies and rising EV adoption. The IRA 30D tax credit intends to fuel sales of EV and fast charging lithium ion batteries by incentivizing consumers to purchase EVs with tax break of up to USD 7,500. The guardrails around it are emblematic of the U.S. anchoring of the present nearshoring and reshoring climate through industrial policy. For credit eligibility, vehicles are required undergo final assembly in North America. Furthermore, to avail USD 3750 (half of the total credit) it is mandatory to have at least 50% of the battery components assembled or manufactured North America. This regulatory compliance is expected to reach 100% by 2029, thus, further strengthening the region’s self-reliance in manufacturing processes.
In August 2023, the United States Department of Energy (DOE) introduced a fast-charge objective of 10 minutes to charge an electric vehicle battery. Maryland Energy Innovation Institute (MEI) and the University of Maryland (UMD), together researched and advanced a single-phase mixed ion- and electron-conducting (MIEC) garnet material which integrated into their previously advanced 3D architecture, not only achieved the DOE Fast-charge goal for Li cycling, then exceeded it by a factor of 10.
Canada is rapidly developing in the fast charge lithium ion battery market due to supportive government policies and strategic investments. In September 2023, Northvolt announced plans to build a lithium-ion battery gigafactory near Montreal named Northvolt Six, with an annual production capacity of up to 60GWh which is adequate to power approximately one million electric vehicles per year. The federal government has committed up to USD 4.6 billion in production incentives to support this initiative.
Asia Pacific Market Analysis
Asia Pacific is expected to experience a stable CAGR during the forecast period, with countries such as China, Japan, India, and South Korea leading in production and technological developments. In 2022, India produced 81% of the lithium-ion batteries that are used in indigenous electric vehicles while keeping with the government's vision of Atmanirbhar Bharat. China has made significant steps in battery manufacturing and electric vehicle adoption. Companies such as Contemporary Amperex Technology Co. Limited (CATL) are advancing supercharging cells capable of charging EVs from 0% to 80% in just 10 minutes while addressing consumer concerns about range anxiety and long charging times.
The dominance of China in Lithium Iron Phosphate (LFP) battery technology, which is more cost-effective than nickel-cobalt alternatives and safer, while giving an edge over competitors such as South Korea's LG and Samsung. In 2022, China had more battery production capacity than combined with the rest of the world. With approx. 900 gigawatt-hours of manufacturing capacity or 77% of the worldwide total, China is home to six of the world’s 10 biggest battery manufacturers. Behind China’s battery dominance is its vertical integration across the rest of the EV supply chain, from mining the metals to manufacturing the EVs.
In April 2023, Log9, a company that produces batteries for electric cars, introduced India's first locally produced lithium-ion battery cell, which would be invented in one of its Bengaluru facilities. Automakers generally import battery cells from China or South Korea. The company strategies to start with 50 MWh of battery capacity to run up to 25,000 electric two-wheelers. Due to enhanced energy density, lithium-ion batteries can store more energy in a specified weight or volume. The decreasing weight and size are particularly important for portable electronic gadgets and electric cars as they increase efficiency and user convenience.
Companies such as Contemporary Amperex Technology Co., Limited (CATL), BYD Auto Co., Ltd., Panasonic Holdings Corporation, and Samsung SDI Co., Ltd. are leading players in the fast charge battery market by innovating lithium ion-based battery technology that enables fast charging times and improved energy densities. For instance, in March 2023, Samsung SDI introduced BMW i7 and Volvo FM Electric vehicles, showcasing its unique battery technology that includes all-solid-state batteries and high-efficiency fast charging. Here are some leading players in the fast charge lithium ion battery market:
Author Credits: Dhruv Bhatia
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