Lithium-ion Battery Metals Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Lithium-ion Battery Metals Market Trends and Growth Drivers

Surge in EV Production Is Major Driver for Market Growth 

• Rapid sales of electric vehicles (EVs), which nearly reached 14 million units in 2023, and increased by 35% from 2022, constitute the main growth driver for the lithium-ion battery metals market.
• Interestingly, these sales comprised about 95% of the market in China, Europe, and the U.S.
• The demand for this is increasing majorly because of government incentives for using EVs, stringent requirements on emissions, and improved sensitivity regarding environmental issues.
• Manufacturers are, therefore, heavily investing in lithium-ion, which thus far remains a dominant technology mainly due to the efficacy and superior energy storage capabilities.
• Additional requirements of new technologies for enhancing battery energy density with reduced cost provide a preference to make EVs more affordable to the marketplace.
• Strong EV infrastructure charging networks and increasing battery recycling facilities also accelerate the development of lithium-ion batteries.
• With so many emerging factors, it brings forth the importance of lithium-ion batteries for the future of transportation across the world.

Battery Recycling and Second-Life Applications are Key Trends in Market

• As electric vehicle demand continues to rise, the need for innovative solutions in the management of end-of-life batteries has grown.
• Recycling lithium, cobalt, nickel, and other metals from used batteries not only reduces environmental impact but also helps address the growing scarcity and rising costs of these crucial raw materials.
• Used EV batteries are being repurposed for energy storage systems in homes, industries, and the grid.
• This trend covers the growing requirements to store renewable energy and strengthens the battery lifecycles towards making EVs more sustainable in general.
• Initiatives in Europe, the U.S., and China are the main movers in developing recycling plants, propelling regulatory frameworks for facilitating the process.

Resource Scarcity and Supply Chain Instability Is Major Challenge for Market

• The biggest challenge the lithium-ion battery metals market is facing is supply chain disruption and growing scarcity of raw materials, such as lithium, cobalt, and nickel.
• Although these three metals are naturally abundant, their economic sources are scarce and exist only in a few countries. For instance, lithium mining is controlled by Australia, Chile, and China. Cobalt is solely produced by the Democratic Republic of Congo.
• The regional focus leads to vulnerability in supply chains and puts the market at the susceptible of geopolitics, political instability, and trade barriers imposed within these regions.
• Besides this, phenomenal growth within demand for electrical cars and energy storage systems escalates competition for the metals, which elevates the price and in the long term provides insecurity in supply.

Lithium-ion Battery Metals Market Analysis

End Use Analysis

• The automotive industry is the major contributor to the market revenue, with a 55% share in 2024. This is mainly because major emerging and advanced economies are increasingly focusing on lowering carbon emissions and switching to electric cars.
• Emerging as well as developed economies are introducing policies to phase out the internal combustion engine and encourage greener modes of transportation.
• The ESS category is the fastest-growing in the lithium-ion battery metals market. The push into renewable energy sources globally, particularly solar and wind, fuels growth in this sector, since energy from these sources is intermittent and has to be stored through energy storage solutions.
• Modernizing power grids, increased investment in decentralized power solutions, and government incentives towards clean energy initiatives are among other factors accelerating demand for ESS.

The end uses analyzed in this report are:

• Automotive Industry (Largest Category)
• Consumer Electronics
• Energy Storage System (Fastest-Growing Category)
• Others

Metal Analysis

• Lithium held the largest market share, of ~45%, in 2024 because of the absolute necessity in battery chemistry and the growing demand of industries in EVs and energy storage systems.
• Its light weight and high energy density make it essential for most battery formulations.
• Additionally, the development of solid-state batteries, which are expected to be the next leap in battery technology, relies heavily on lithium, solidifying its long-term importance in the industry.
• Nickel is the fastest-growing, with a CAGR of 15.46% in the forecast period. This is mainly because of its increased use in high energy density batteries.
• Considerable attention is being focused toward nickel-rich battery chemistries, such as NMC and NCA technologies, where nickel is helpful in reducing the dependency of cobalt, in improving battery performance, and with regard to the driving range of EVs.

The metals analyzed in this report are:

• Lithium (Largest Category)
• Nickel (Fastest-Growing Category)
• Cobalt
• Others

Cell Chemistry Analysis

• The lithium–iron phosphate cell chemistry will experience the highest CAGR, of 14.31%, during the forecast period due to its higher energy density and capacity.
• The number of R&D projects that manufacturers are working on to develop LFP batteries and their ability to produce the cells have significantly increased in the recent past, thus contributing to the growth of the lithium-ion battery metals market.
• CATL is currently the largest producer of LFP batteries, which are used by Tesla for its short- and medium-range electric cars made in Shanghai; CATL also exports these to Europe. Similar to this, many other players in the LFP battery industry have been boosting their R&D budgets and portfolio-enhancing investments.
• Nickel manganese cobalt is the largest category with the market share, of ~40%, in 2024 due to the increased demand for high-energy-density batteries in EVs and portable electronics.
• NMC batteries provide a balance that could otherwise be achieved between energy density, safety, and longevity, making them highly useful to manufacturers of EVs seeking more extended performance-oriented ranges.

The cell chemistry analyzed in this report are:

• Nickel Manganese Cobalt (Largest Category)
• Nickel Cobalt Aluminum
• Lithium Manganese Oxide
• Lithium Iron Phosphate (Fastest-Growing Category)

Lithium-ion Battery Metals Market Geographical Outlook

• The APAC region, which currently consumes the highest amount of lithium-ion battery metals, is largest region with a market share of ~45% in 2024.
• The demand for the metals used to make Li-ion batteries is primarily driven by the rising demand for EVs.
• Because EVs are being adopted at a high pace in Japan, Australia, South Korea, and India, the demand for automotive Li-ion battery cathode and anode materials continues to surge in the region.
• China is the largest shareholder in the regional market due to its growing EV industry. In the same vein, with popular models, such as the Corolla Hybrid and Accord Hybrid, Toyota and Honda, respectively, have dominated the hybrid vehicle market in China.
• North America is the fastest-growing region, with the CAGR of 13.43% in the forecast period.
• This is due to the increasing adoption of electric vehicles, pro-government incentives, and a growing number of investments in the production of domestic battery manufactures.
• The U.S. is the most significant contributor to growth in the North America region, based on the policies adopted to enhance the adoption of electric vehicles, advancement in battery manufacture technology, and localization of supply chains for batteries through the Inflation Reduction Act and partnerships with automobile companies to reduce reliance on foreign suppliers.

The regions and countries analyzed in this report are:

• North America (Fastest-Growing Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • France
  • U.K.
  • Spain
  • Italy
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • South Africa
  • Saudi Arabia (Largest and Fastest-Growing Country Market)
  • U.A.E.
  • Rest of MEA

Lithium-ion Battery Metals Market Share

The lithium-ion battery metals market is fragmented in nature due to the presence of several key players. The presence of various cell chemistries, such as Nickel Manganese Cobalt (NMC), Lithium Iron Phosphate (LFP), and Nickel Cobalt Aluminum (NCA), caters to specific needs, further dividing the market among companies focusing on particular technologies. Moreover, given the swift growth rate in the EV and renewable energy sector, several new entrants and startups have entered the market.

Lithium-ion Battery Metals Market News

• In February, 2024, Albemarle Corporation announced a definitive agreement with the BMW Group to supply battery-grade lithium. This partnership aims to support BMW in producing high-performance, premium electric vehicles (EVs).
• In November 2023, China Molybdenum Co. Ltd. announced the successful stable production of its Bikita Lithium Mine 2 million tons/year (Lithium Spodumene) Expansion and Reconstruction Project. Once fully operational, the project is expected to produce 300,000 tons of chemical-grade lithium spodumene concentrate annually.
• In September 2023, BASF TODA Battery Materials LLC and Nanotech Energy announced a collaboration to produce lithium-ion batteries using recycled metals. The partnership will also involve American Battery Technology Co. and Toda Advanced Materials to establish a battery value chain based in North America.
• In May 2023, L&F of Korea received a license from CAMX Power for its GEMX advanced cathode material platform, designed for lithium-ion batteries.