Lithium-ion battery market to reach $483 billion by 2032
China is set to lead the market with its insatiable thirst for electricity, which will account for 40% of all demand by 2030. China also has a strong supply chain for lithium-ion batteries.
The global lithium-ion battery market valuation is poised to reach USD 483.4 billion by 2032, with a CAGR of 21.40% during the forecast period from 2025 to 2032, according to a report by global analytics and advisory company Astute Analytica.
The lithium-ion battery market is hurtling towards a future of explosive growth and tricky challenges. Powered by the growth of electric vehicles (EVs), it has been witnessing a stronger demand than ever, 550 GWh in 2022 to be exact, and that number is projected to explode to 4,500 GWh by 2030, according to a media release.
That surge highlights the potential for a 10-fold revenue growth industry-wide, shooting past USD 410 billion within the decade.
China is anticipated to lead the market with its insatiable thirst for electricity, which will account for 40% of all demand by 2030. This leadership position is underpinned by China's strong supply chain for lithium-ion batteries, which includes access to critical raw materials, advanced manufacturing abilities, and significant government support. The country has heavily invested in the development of new energy vehicles (NEVs) and renewable energy storage solutions, further driving the demand for lithium-ion batteries.
Also, China's dominance in the production of electric vehicles (EVs) and its role as a global hub for battery manufacturing have solidified its position as a key player in the market. The global lithium-ion battery market itself is encountering rapid growth, with projections showing a compound annual growth rate (CAGR) of more than 20% from 2024 to 2030.
By 2030, the market is predicted to reach a capacity of 6.5 terawatt-hours (TWh), propelled by the growing adoption of EVs and renewable energy systems worldwide. While the United States and Europe are also growing their market shares, China's scale and infrastructure give it a significant competitive edge in meeting the surging global demand.
However, supply chain vulnerabilities threaten this trajectory. Demand for critical materials like cobalt, lithium, and nickel is set to grow exponentially – lithium requires an 18-20x boost in supply while cobalt needs a 17-19x fill and nickel will require a mammoth uptick of between 28-31x by 2050. A crippling shortage of lithium –a material found in batteries - could slow down EV production within this decade if not addressed soon. Battery recycling presents a solution but only if manufacturers can find consistent supplies that are ethically sourced.
The lithium-ion battery industry is changing, and it is changing fast. There is a real push in the sector to become more sustainable — environmentally and socially. People are starting to look closer at what they are buying, governments are passing stricter regulations, and producers are eager to ensure that their businesses have long-term potential. There are many different ways to make batteries more bearable, but one key area of focus for companies is minimizing the damage caused by lithium mining.
