The global battery market is expanding rapidly as demand rises while prices continue to decline. In 2024, as electric car sales rose by 25% to 17 million, annual battery demand surpassed 1 terawatt-hour (TWh). The average price of a battery pack for a battery electric vehicle (EV) dropped below $100 U.S./ kWh per kilowatt-hour.
Battery capacity production is charted above by cathode type across major countries, focusing on nickel cobalt manganese (NCM) and lithium iron phosphate (LFP) chemistries.
LFP cathodes currently account for 40% of the EV market in terms of gigawatt-hours (GWh). These batteries offer lower cost and improved thermal stability relative to competing technologies but deliver a shorter driving range and add weight. LFP batteries are also widely deployed in systems that undergo frequent charging and discharging, such as residential and grid-scale energy storage. NCM batteries provide higher energy density and better performance in cold climates but are more expensive and have a shorter lifespan.
China leads in LFP capacity production and accounted for 64% of the market in 2024. By 2030, that figure is projected to grow to 76%, driven by a focus on affordability in the world’s largest EV market. Notably, over 70% of all EV batteries ever manufactured have been produced in China, contributing to deep manufacturing expertise.
In North America, NCM output held a 71% share in 2024, with a slight decline to 69% projected for 2030. The share of NCM manufacturing in Europe is expected to grow from 69% in 2024 to 71% by 2030.
