The global battery thermal interface materials market size was USD 1.84 Billion in 2025 and is expected to register a revenue CAGR of 12.3% during the forecast period. Market revenue growth is supported by expanding EV battery pack production and the transition from module-based to cell-to-pack battery architectures that substantially increase thermal interface material consumption per kilowatt-hour of battery capacity by eliminating the thermal management buffer that module housings previously provided between cells and cooling plates. Battery thermal interface materials including thermal gap filler pads, thermal gels, phase change materials, and thermally conductive adhesives are applied at the cell-to-cooling-plate interface, module-to-cooling-plate interface, and busbar-to-heatsink interface to reduce thermal resistance and ensure uniform cell temperature distribution that minimises temperature-induced capacity fade and cycle life reduction across the battery pack lifetime.
For instance, in March 2026, Henkel AG, Germany, confirmed qualification of its Bergquist GP3500LV thermal gap filler compound at BYD Blade Battery cell-to-pack production lines in Shenzhen, achieving thermal conductivity of 3.5 watts per metre kelvin at 2 millimetre applied thickness with dispensing viscosity below 180,000 centipoise enabling automated dispensing at 120 grams per second from Henkel's robotic dispensing head, the first thermal gap filler compound qualification at a BYD Blade Battery CTP production line from a Western thermal interface material supplier with simultaneously confirmed 3.5 W/mK conductivity and automated dispensing compatibility. These are some of the key factors driving revenue growth of the market.
However, thermal interface material from Chinese suppliers including Shenzhen Huachuang Micro Heat Exchange Technology, Dongguan Shinco Thermal, and Zhejiang Nuoshen New Material has captured approximately 60% of Chinese battery pack thermal interface material procurement at ASPs 35% to 50% below Western equivalents, with Chinese cell manufacturers and pack assemblers accepting Chinese thermal interface material for domestic automotive programs where thermal performance specifications are met at lower material cost. The increasing thermal conductivity requirements for fast-charging cell-to-pack architectures above 5 watts per metre kelvin create a premium specification tier where Western thermal interface material suppliers including Henkel, 3M, and Dow retain a thermal conductivity advantage that Chinese suppliers have not fully closed. These factors substantially limit battery thermal interface materials market growth over the forecast period.
Based on product type, the global battery thermal interface materials market is segmented into thermal gap filler pads, thermal gap filler compounds and gels, phase change materials, thermally conductive adhesives, and thermal encapsulants. The thermal gap filler pad segment commands the largest revenue share because pre-formed silicone-based gap filler pads at 2 to 4 millimetre thickness are the dominant thermal interface material format for high-volume automotive battery pack assembly, providing consistent thickness control and easy automated assembly integration compared with dispensed compounds that require precise dispensing volume control and gel management.
The thermal gap filler compound and gel segment is expected to register a rapid revenue growth rate in the global battery thermal interface materials market over the forecast period. Cell-to-pack architecture adoption in LFP and NMC automotive programs where cell height variation of plus or minus 0.5 millimetre requires compliant gap-fill at variable thickness between cell surfaces and cooling plates is driving adoption of pumpable dispensed thermal gap filler compounds that accommodate cell height variation that rigid pre-formed pads cannot accommodate without surface contact gaps that create thermal resistance.
Based on regional analysis, the Battery Thermal Interface Materials Market market in Asia Pacific accounted for the largest revenue share in 2025. China is the dominant country, hosting the world's largest concentration of lithium-ion cell manufacturing capacity at producers including CATL, BYD, CALB, and EVE Energy, and the majority of upstream battery material processing for cathode active materials, electrolyte solvents, and anode graphite. China's battery supply chain depth extends from lithium carbonate and cobalt sulphate refining through separator and copper foil production to cell assembly and pack integration, giving Chinese producers a vertically integrated cost advantage over all other regional competitors. South Korea is the second-largest country by revenue in Asia Pacific, with LG Energy Solution, Samsung SDI, and SK On operating NMC cell gigafactories in Korea and at European and North American sites, with Korean producers holding the highest automotive qualification breadth for EU and US OEM programs outside China. Japan contributes through Panasonic Energy's NCA and NMC cylindrical cell production, Sumitomo Metal Mining's NCA cathode active material, and Toyo Aluminium's carbon-coated cathode current collector foil, among other speciality material suppliers whose process know-how is not replicated at equivalent scale in other regions. India is an emerging market for battery assembly and two-wheeler battery applications, with Tata Group, Ola Electric, and Reliance New Energy announced manufacturing investments that are expected to create sub-regional demand for battery materials and components through the forecast period.
The European Battery Thermal Interface Materials Market market is expected to register rapid revenue growth over the forecast period. The EU Battery Regulation, effective from 2024 and 2026 for progressive provisions, is the primary regulatory driver reshaping European battery supply chain investment, imposing mandatory recycled content thresholds, carbon footprint disclosure, and supply chain due diligence requirements that incentivise European domestic production of battery materials, components, and recycling services. Germany is the largest European market, hosting Volkswagen Group Gigafactory Salzgitter, BMW and Mercedes-Benz cell procurement programs, BASF battery materials development at Schwarzheide, and Umicore's Hoboken recycling campus in adjacent Belgium providing European certified recycled material supply. Sweden and Finland host Northvolt's restructured gigafactory program in Skellefteå and Fortum Battery Recycling at Harjavalta respectively, providing Northern European cell production and recycling infrastructure that supplies Nordic and Baltic OEM demand. France and Spain are expanding their battery manufacturing base through Renault's Douai ElectriCity gigafactory, Stellantis's ACC joint venture in Douvrin, and AESC's Sunderland UK facility, with Airbus and Safran driving aerospace battery demand in France. The IMF-confirmed disruption to Strait of Hormuz seaborne flows in 2026 has increased European battery supply chain attention to Middle Eastern raw material route vulnerability, accelerating European investment in alternative lithium, nickel, and cobalt supply chains through Canadian and Australian critical mineral agreements.
The North American Battery Thermal Interface Materials Market market is expected to register rapid revenue growth, driven by IRA Sections 30D, 45X, and 48C incentive provisions that collectively create USD 7,500 per vehicle consumer tax credits, USD 35 per kilowatt-hour cell manufacturing production credits, and investment tax credits for gigafactory capital expenditure that have attracted over USD 80 billion of announced battery manufacturing investment since August 2022. The United States is the dominant North American market, with Tesla Gigafactory Texas 4680 cell production, GM Ultium Cells joint venture with LG Energy Solution at Ohio and Tennessee, Panasonic Energy's Kansas facility, and Samsung SDI's Indiana plant representing the largest confirmed IRA-eligible cell production investments. Canada benefits from lithium and nickel critical mineral production in Ontario and Quebec, with First Cobalt, Vale, and Glencore Sudbury operations providing IRA-eligible cobalt and nickel feedstock for US battery supply chains under the US-Canada USMCA critical minerals framework. Mexico is emerging as a battery pack assembly location for US market vehicles produced by Stellantis and General Motors at Saltillo and Ramos Arizpe facilities, with USMCA rules of origin requirements driving battery component localisation decisions across the North American automotive supply chain. The FEOC restriction effective from 2025 battery component provisions excludes Chinese, Russian, North Korean, and Iranian battery material sourcing from IRA-eligible vehicle programs, creating a structural driver for non-Chinese battery supply chain development that is the primary commercial narrative for North American battery investment through the forecast period.
The Battery Thermal Interface Materials Market market in Latin America is expected to register moderate revenue growth from a low base, with Chile and Argentina representing the primary battery-relevant economies through their dominant positions in global lithium brine production. Chile holds the world's largest confirmed lithium reserves in the Atacama and Maricunga salars, with SQM and Albemarle producing battery-grade lithium carbonate and lithium hydroxide at production costs below USD 4 to USD 6 per kilogram that no other global lithium source can match. The March 2025 Chilean government confirmation of CODELCO state participation in 50% of incremental Atacama production represents the most significant Chilean lithium governance change since 1979, adding a government counterparty to all future Atacama lithium offtake agreements. Argentina's Lithium Triangle resource in Jujuy, Salta, and Catamarca provinces is being developed by Livent Fenix, Allkem Sal de Vida, and Sigma Lithium Grota do Cirilo, with Argentine lithium qualifying as IRA-eligible under the US-Argentina critical minerals arrangement announced in 2024. Brazil is developing its battery manufacturing base through Stellantis and GM EV assembly investments at São Paulo and Minas Gerais sites, with domestic lithium spodumene production at Sigma Lithium providing a local feedstock base for future Brazilian battery material processing investment.
The Battery Thermal Interface Materials Market market in the Middle East and Africa is expected to register limited revenue growth from a low base, with the DRC representing the region's most significant battery supply chain position through its 73% share of global cobalt mine production. The DRC's Tenke Fungurume and Katanga Mining copper-cobalt operations, operated by China Molybdenum and Glencore respectively, are the world's largest cobalt producing mines and the origin of the majority of global battery-grade cobalt supply chain. The US-Iran conflict and IMF-confirmed disruption to Strait of Hormuz seaborne flows from March 2026, affecting approximately 20% of global oil and seaborne LNG, has introduced supply route uncertainty for battery raw materials exported from Gulf region ports including cobalt hydroxide shipments from Dar es Salaam and Durban that transit the Arabian Sea shipping lanes affected by conflict-related disruption. South Africa holds 70% of global manganese ore reserves, supplying Chinese processing facilities that convert ore to battery-grade manganese sulphate for LMFP and NMC cathode precursor production, with South32 and Anglo American Kumba evaluating in-country manganese sulphate conversion to capture higher value from the manganese ore export chain. Morocco and Egypt are developing battery assembly and EV manufacturing capacity targeting European export markets under EU-Morocco and EU-Egypt association agreement preferential tariff frameworks, with Renault's Tangier and Stellantis's Kenitra Morocco facilities providing the industrial base for potential battery component supply chain development.
| Product / Grade | Q2 2025 | Q2 2026 | Direction | Key Driver |
|---|---|---|---|---|
| Thermal gap filler pad 3-5 W/mK ($/kg) | 42 | 40 | ▼ Declining | Market dynamics |
| Dispensable gel 5-6 W/mK ($/kg) | 68 | 64 | ▼ Declining | Market dynamics |
| Phase change material 9 W/mK ($/kg) | 124 | 118 | ▼ Declining | Market dynamics |
| Thermal adhesive busbar ($/kg) | 84 | 80 | ▼ Declining | Market dynamics |
| Chinese thermal gap filler ($/kg) | 22 | 21 | ▼ Declining | Market dynamics |
| Company | Country | Specialisation | Position / Scale | Faradex Assessment |
|---|---|---|---|---|
| Henkel AG | Germany | Bergquist gap filler compound | 3.5 W/mK, BYD Blade CTP qualified | HIGH |
| Dow Inc | USA | DOWSIL TC-6015 thermal gel | 6.0 W/mK, IRA-eligible NA CTP qualified | HIGH |
| 3M Company | USA | 5590H thermal gap filler pad | 5.5 W/mK, Samsung SDI NMC90 qualified | HIGH |
| Parker Hannifin | USA | Chomerics G990 phase change | 9 W/mK after phase change, EU qualified | MEDIUM-HIGH |
| Momentive | USA | SilCool 8085 busbar adhesive | 4.5 W/mK, 2.2 MPa shear, automotive rel | MEDIUM |
| Shenzhen Huachuang | China | Thermal gap filler compounds | CNY 1.4Bn, CATL/BYD/SAIC supply | MEDIUM |
| Shin-Etsu Chemical | Japan | Silicone thermal interface materials | Japanese cell manufacturer supply | LOWER |
| Laird Performance Materials | UK | Thermal interface pads | European automotive pack market | LOWER |
This report covers the global battery thermal interface materials market across all major segments and geographic regions. Primary research combines panel conversations with industry experts and is cross-referenced against company annual reports and government agency data. All market size figures use 2025 as the base year with a 2026-2035 forecast period.