Europe’s Battery Market Gains Momentum with Rising EV and Storage Demand

European battery market was valued at $22.8 billion in 2024 and is projected to reach $174.6 billion by 2035, growing at a CAGR of 20.4% during the forecast period (2025–2035). European battery market is fueled by increasing demand for electric vehicles and renewable energy storage systems. According to the European Union, in January 2025, Europe's total installed battery manufacturing capacity had reached 167 GWh in 2023 (capacity utilization rates of battery plants are not 100%). European-based battery manufacturing in 2023 met nearly half of Europe's demand for batteries used in EVs and energy storage systems.

Browse the full report description of “European Battery Market Size, Share & Trends Analysis Report by Category (Primary (Non-rechargeable) Batteries, and Secondary (Rechargeable) Batteries), by Type (Lithium Ion (Li-Ion), Nickel-Metal Hydride (NI-MH), Nickel Cadmium, Lead Acid, and Others (Solid-state batteries)), and by Application (Automotive, Industrial, Consumer Electronics, Energy Storage Systems (ESS), Medical Devices, and Defense and Aerospace), Forecast Period (2025-2035)” at https://www.omrglobal.com/industry-reports/europe-battery-market

Growing investments in modern manufacturing facilities are supporting industrial capabilities in the region. Continual government policies and financing initiatives are all driving great innovation and speeding up the industrial expansion. Technology advances with energy density and charge efficiency, all contribute to a more competitive European battery market. Strategic partnerships between producers and research organizations are further driving market development. 

For instance, in February 2024, Agratas, Tata Group’s global battery business, announced that it would build a gigafactory on the Gravity Smart Campus near Bridgwater, Somerset. The 40 GWh factory is set to be the battery factory in the country and, by early 2030, that contribute almost half of the projected battery manufacturing capacity required for the UK automotive sector.

Key Market Developments

• In August 2025, Lyten, in lithium-sulfur batteries, announced that it had entered into a binding agreement to acquire Northvolt’s remaining assets in Sweden and Germany. In total, Lyten’s acquisition includes assets valued at approximately $5 billion, including 16 GWh of existing battery manufacturing capacity, more than 15 GWh of capacity under construction, the infrastructure, and plans to scale to more than 100 GWh, and the largest and most advanced battery R&D center (Västerås) in Europe.

• In July 2025, the European Commission announced that six pioneering electric vehicle (EV) battery cell manufacturing projects received a total of €852 million ($942.6 million) in grants from the Innovation Fund, using revenues from the EU Emissions Trading System (EU ETS). The projects support innovation in the production of EV battery cells and the deployment of innovative and sustainable manufacturing techniques, processes, and technologies.

Market Coverage

• The market number available for – 2024-2035

• Base year- 2024

• Forecast period- 2025-2035

• Segment Covered- 

o By Category 

o By Type

o By Application 

• Competitive Landscape - Contemporary Amperex Technology Co., Limited, Saft Groupe S.A., FIAMM SpA, BYD Co., Ltd., and Northvolt AB, among others

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

European Battery Market Report Segment

By Category 

• Primary (Non-rechargeable) Batteries
• Secondary (Rechargeable) Batteries

By Type

• Lithium Ion (Li-Ion) 
• Nickel-Metal Hydride (NI-MH) 
• Nickel Cadmium 
• Lead Acid
• Others (Solid-state batteries)

By Application 

• Automotive
• Industrial
• Consumer Electronics
• Energy Storage Systems (ESS)
• Medical Devices
• Defense and Aerospace

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