Lithium-ion battery market projected to reach $348 billion by 2032

The global lithium-ion battery market is expected to grow significantly, rising from an estimated $113.63 billion in 2025 to $348.37 billion by 2032, representing a compound annual growth rate (CAGR) of 17.5% between 2026 and 2032. This expansion is primarily driven by the increasing adoption of electric vehicles (EVs), rising demand for renewable energy storage systems, and advancements in consumer electronics.

In 2025, global production is estimated at approximately 2,300 GWh, with automotive batteries accounting for over 65% of the market. China currently dominates the sector, representing more than 80% of global production. However, capacity expansion is also underway in Europe, North America, Japan, and South Korea.

Parallel to general battery growth, the dry electrode materials market is also seeing rapid development. Valued at $1.24 billion in 2025, this niche sector is projected to reach $6.76 billion by 2035, growing at a CAGR of 18.5%. Dry electrode technology offers a solvent-free manufacturing alternative that can reduce energy consumption, production costs, and factory footprints, making it a key area of investment for major players like Tesla, CATL, and Panasonic Energy.