Battery Market to reach $442.4 billion by 2035

Battery market was valued at $185.2 billion in 2025 and is projected to reach $442.4 billion by 2035, growing at a CAGR of 9.2% during the forecast period 2026 to 2035, according to a new report by Orion Market Research. The global battery market is being driven by rapid electric vehicle adoption, falling battery prices, large-scale manufacturing capacity expansion, and growing demand for energy storage systems. Technological advancements and improved supply chain efficiency have further supported cost reductions and performance improvements across battery chemistries. Among these drivers, Lithium Iron Phosphate (LFP) batteries have emerged as a major growth engine, as they offer lower cost, superior safety, longer cycle life, and reduced reliance on expensive materials like cobalt and nickel.

Browse the full report description of “Battery Market Size, Share & Trends Analysis Report by Type (Primary Battery and Secondary Battery), by Battery Type (Lithium-ion, Lead-Acid, Nickel Cadmium, NiMH, and Others), by Application (Automotive, Industrial, and Portable), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/battery-market

LFP Batteries Accelerating Global Battery Expansion

As per the International Energy Agency, after years of investment, global battery manufacturing capacity reached 3 TWh in 2024, and the next five years could see a tripling of production capacity if all announced projects are built. Cheaper battery minerals have been an important driver of this expansion. For instance, Lithium Iron Phosphate (LFP) batteries, which were initially considered unsuitable for electric vehicles due to their lower energy density, are now significantly taking over lithium nickel cobalt manganese oxide (NMC) batteries.

This shift is driven by LFP’s use of abundant and low-cost materials such as iron and phosphate, its superior thermal stability and fire safety, and it’s much longer cycle life compared to cobalt- and nickel-based batteries. These advantages make LFP batteries more affordable, safer, and better suited for high-volume, mass-market applications.

Chinese manufacturers have significantly improved LFP battery technology, enabling it to capture nearly 50% of the global EV market after rapidly expanding its share over the past five years. Today, LFP batteries are around 30% cheaper than NMC alternatives, while still delivering competitive driving range and performance, making them the preferred choice for mass-market electric vehicles. In the European region, efforts to produce cheaper LFP batteries are also beginning to expand, supporting broader regional adoption.

Key Business Development in the Battery Market

• In December 2024, Stellantis and CATL announced to invest up to €4.1 billion to form a joint venture that will build a large-scale European lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.  It is anticipated to start production by the end of 2026 at Stellantis’ Zaragoza, Spain site, and the facility could reach up to 50 GWh capacity.
• In March 2023, LG Energy Solution (LGES) announced to invest about KRW 7.2 trillion ($ 5.5 billion) to build a large battery manufacturing complex in Queen Creek, Arizona. The project includes two plants: a 27 GWh cylindrical battery facility for electric vehicles and a 16 GWh lithium iron phosphate (LFP) pouch-type battery facility for energy storage systems (ESS). Notably, the LFP plant will be the world’s first ESS-dedicated battery production facility and is scheduled to begin operations in 2026.

• In December 2025, SAMSUNG SDI's U.S. subsidiary signed three-year deal to supply LFP cells starting from 2027 for installation of energy storage systems in North America.

Market Coverage

• The market number available for – 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
• Type
• Battery Type
• Application

• Competitive Landscape –

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?

Global Battery Market Report Segment

By Type

• Primary Battery
• Secondary Battery

By Battery Type

• Lithium-ion
• Lead-Acid
• Nickel Cadmium
• NiMH
• Others (NiZn & Flow Battery)

By Application

• Automotive
• Industrial
• Portable

Global Battery Market Report Segment by Region

North America

• United States
• Canada

Europe

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia and New Zealand
• ASEAN Economies
• Rest of Asia-Pacific

Rest of the World

• Latin America
• Middle East & Africa

To learn more about this report request a sample copy @ https://www.omrglobal.com/request-sample/battery-market