Global Lithium-ion Battery Market Set To Exceed 400bn By 2035

The demand for lithium-ion batteries Li-ion is set to soar dramatically over the next decade, with projections indicating the market will exceed 400 billion by 2035, according to a recent report by IDTechEx.

At the heart of this explosive growth lies an ever-increasing utilisation of Li-ion batteries in consumer electronics, electric vehicles EVs, and the widespread adoption of renewable energy sources reliant on efficient energy storage solutions.

Dr Alex Holland, the research director at IDTechEx, said this research looked at the falling battery costs and how this will affect the Li-ion battery market long term.

The cost of raw materials such as lithium, nickel, cobalt, and graphite play a pivotal role in shaping the overall cost structure of lithium-ion batteries. As these materials are core components of a battery cell and battery production, their market dynamics directly affect battery pricing trends, Holland said.

During 2022, lithium saw unprecedented price spikes due to a strong increase in demand, while nickel and cobalt also faced supply chain pressures, contributing to rising costs. In 2022, the cost of lithium, nickel, and cobalt alone could have contributed up to 60/kWh to the cost of an NMC 811 battery. However, 2023 saw a decline in prices, with the cost of those same raw materials contributing only around 20/kWh during 2024.