Powered by rapid electrification of transportation, surging renewable energy storage demand, and breakthroughs in high-energy battery chemistries, the global battery materials market is expanding at an accelerated pace. Rising EV adoption, strategic importance of lithium-ion supply chains, scaling cathode manufacturing, and Asia Pacific’s integrated production dominance are positioning battery materials as a cornerstone.
Chicago, Feb. 03, 2026 (GLOBE NEWSWIRE) — The global battery materials market was valued at 80.6 billion in 2025 and is expected to reach US$ 216.8 billion by 2035, growing at a CAGR of 10.4% from 2026 to 2035.
The world energy terrain is currently going through a radical change, away from fossil fuel combustion and towards electrochemical storage solutions. At the center of this change is the battery materials market, a complicated ecosystem of specialty chemicals and minerals that control the performance, safety, and cost of modern energy storage. These materials mainly consist of cathode active materials such as lithium, nickel, cobalt, and manganese, as well as anode materials such as natural and synthetic graphite. Between 2024 and 2025, the industry has achieved a critical tipping point where the ability to access these materials became a matter of national economic security to major global powers.
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High-Energy NCM Cells Power Premium Electric Vehicles in Western Markets
The key consumers are automotive giants such as BYD, Tesla, and Volkswagen, as well as utility companies and consumer electronics giants. These players typically have to choose between two dominant battery chemistries: Lithium Iron Phosphate (LFP) and Nickel Cobalt Manganese (NCM). LFP batteries are preferred for their safety and their lower cost (at least in China, where 11,000,000 EVs were sold in 2024). On the other hand, NCM batteries are favorably utilized in the West in high-performance vehicles because of their high energy density. Premium NCM cells had an average density of 300 watt-hours per kg in 2025.
Emerging chemistries in the battery materials market are also making niches for themselves. Condensed matter batteries went into production in 2024 with the amazing 500 watt-hours/kilogram density. Meanwhile, researchers broke the laboratory record to 711.3 watt-hours per kilogram in late 2024. Even more futuristic are the sodium-ion and the aluminum-ion variants. Aluminum-ion pilots are striving for a 10,000-cycle durability level. These different types guarantee that the demand for different types of materials, from high-purity nickel to low-cost manganese, is diversified and strong.
Energy Transition Drives Unprecedented Expansion in Battery Materials Consumption
Battery materials are the basic building blocks, foils, the active chemicals, and electrolytes, upon which a battery can store and release energy. What can be said of the industry as a whole is that growth in the battery materials market is no longer gradual; it is explosive. Experts note that the total demand of batteries for the global energy sector officially crossed 1 terawatt-hour for the first time in 2024. Such a massive need is supported by aggressive climate mandates and the declining cost of integration of renewable energy. Furthermore, the global target has been set at 1.6 terawatt-hours for 2025 for the battery supply chain in order to keep up with the goals for decarbonization.
The rise in the battery materials market is mainly due to the “Grand Transition” in transportation. In 2024, the world witnessed 17,000,000 electric vehicles being sold, and it was a massive jump from the previous years. Projections for the year 2025 take 20,000,000 units per year. Every single vehicle is a huge commitment of refined minerals. For instance, one single 100 kilowatt hour of battery pack can contain almost 90 kg of lithium content. As a result, the volume of lithium consumed was more than 210,000 metric tons in 2024 to fulfill this insatiable appetite.
Cathode Manufacturing Capacity Becomes a Key Lever for Cost and Sustainability
The development of cathode materials continues to enhance energy density and efficiency throughout the lithium-ion technologies. Most of the next-generation storage systems now take advantage of 811 Nickel Manganese Cobalt (NMC) formulations for the best performance ratios. An average electric car consists of close to 40 kilograms of lithium carbonate, which delivers 200 milliampere-hours per gram in specific capacity. To accomplish this goal, cathode precursors are fired at 900 degrees Celsius and milled to particle sizes of 50 micrometers, which ensures they have consistent electrochemical properties. It is no wonder then that cathodes are the most dominating category of battery materials in the global battery materials market.
Long-range electric vehicle packs tend to have 14 kilograms of cobalt and have three-layer atom structures in their lithium iron phosphate (LFP) compositions. These designs require approximately 250 metric tons of daily precursor feedstock at production facilities. Operating voltages up to 4.2 volts, active powders have a six-month shelf life under stable conditions of storage. The future course of the battery materials market is closely related to the development of cathode materials manufacturing because the growing production capacities for manufacturing will directly influence the cost efficiency, power density, and the sustainability objectives in the energy value chain.
Integrated Manufacturing Clusters Cement Asia Pacific’s Leadership in Energy Storage Materials
Asia Pacific is the undisputed powerhouse in the battery materials market as far as energy storage manufacturing is concerned, due to its robust demand and commands a strong 42.69% share in the global market. Refineries in the area are firing on all cylinders, because the amount of nickel produced in Indonesia has boomed to 1.8 million metric tons. China alone pumps out 800,000 metric tons of the raw materials for the cathode per year, while South Korean Goliaths such as LG Chem have spent an incredible USD 7 billion on high nickel cathode research. Japanese firms, meanwhile, are in the commanding position with 1,500 patents in solid-state battery technology.
These kinds of integrated industrial clusters deliver enormous economies of scale, and help keep the battery materials market fast-paced and competitive – particularly for electronics. The proximity of the raw material sources to assembly lines gives the Asia Pacific an iron hold on the world dominance market; the speed of production and cost advantages are assured.
Battery Materials Market Major Players:
- Albemarle Corporation
- Asahi Kasei Corporation
- BASF SE
- Entek International Ltd.
- Johnson Matthey
- Livent
- Mitsubishi Chemical Holdings Corporation
- Nichia Corporation
- Showa Denko K. K.
- Sumitomo Chemical Co. Ltd.
- Targray Technology International Inc.
- Umicore N.V.
- Other Prominent Players
Key Market Segmentation:
By Material
- Cathode
- Anode
- Electrolyte
- Separator
By Battery Type
- Lithium-ion
- Lead acid
- Others
By Application
- Automotive
- Consumer Electronics
- Industrial
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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