Section 01
Market Synopsis
Global Market Revenue Trajectory (USD) // 2025-2035
Global Lithium-ion Battery Market Revenue, 2025-2035 (USD Billion)
Base Year 2025 | CAGR 16.5% | Source: Faradex Partners, Company Filings
ⓘ Revenue estimates based on disclosed shipment volume and blended selling price data across form factors, cross-checked against a second independent primary source and calibrated to a 2025 base year.
The global lithium-ion battery market size was USD 189.20 Billion in 2025 and is expected to register a revenue CAGR of 16.5% during the forecast period. Market revenue growth is supported by global lithium-ion battery shipments reaching 2,280.5 GWh in 2025, up 47.6% year on year, according to the White Paper for China's Lithium-Ion Battery Industry released jointly by EVTank and the Ivy Economic Research Institute in January 2026. CATL and BYD together accounted for 55.6% of global EV battery installed capacity in 2025 according to SNE Research, both suppliers now producing across prismatic, cylindrical and pouch form factors to serve automotive, energy storage and, increasingly, artificial intelligence data center customers. Samsung SDI reported 2025 annual revenue of KRW 13.27 trillion (USD 9.28 billion) and disclosed that it has begun supplying tabless cylindrical batteries to global power tool customers while separately securing supply contracts exceeding 110 GWh with automotive groups spanning 46-series cylindrical and prismatic formats. These are some of the key factors driving revenue growth of the market.
Cylindrical cell manufacturers, prismatic cell manufacturers, pouch cell manufacturers, and battery pack and module integrators are the commercial categories that constitute the lithium-ion battery market, with form factor selection increasingly driven by application-specific power and energy density requirements rather than by a single dominant industry standard. For instance, in August 2026, Shinheung SEC, South Korea, a key supplier of cap assemblies and current interrupt device components to Samsung SDI, disclosed it was expanding cylindrical battery component production capacity by 20% at its Malaysian plant to address a cylindrical cell shortage driven by demand for battery backup units used in artificial intelligence data centers. Cylindrical cell demand from data center and power tool customers is now large enough to compete directly with automotive customers for the same manufacturing capacity.
However, next-generation large-format cylindrical cells including Panasonic Energy's 4680 have faced repeated commercialisation delays, with full-scale automotive production at the company's Kansas facility, previously targeted for 2025, pushed back again in 2026 pending a confirmed purchase order from its primary customer, and Panasonic has separately repurposed some 4680-linked production lines toward data center power storage systems where demand is more immediate. This divergence between mature and next-generation cylindrical formats illustrates a broader restraint on the lithium-ion battery market: qualification cycles for new cell formats, chemistries and factory processes remain long and unpredictable relative to the pace at which downstream demand is shifting across applications. These factors substantially limit lithium-ion battery market growth over the forecast period.
Section 02
Segment Insights
Form Factor and Other Revenue Share, 2025
Leading segment drives market value
Application Revenue Share, 2025
End-use distribution 2025
Prismatic segment is expected to account for a significantly large revenue share in the global lithium-ion battery market during the forecast period
Based on form factor, the global lithium-ion battery market is segmented into prismatic, pouch, and cylindrical cells. The prismatic segment commands the largest revenue share because CATL and BYD, together accounting for 55.6% of global EV battery installed capacity in 2025 according to SNE Research, have standardised the large majority of their electric vehicle and energy storage product lines on prismatic lithium iron phosphate cells, which offer higher volumetric packing efficiency for large-format battery packs than cylindrical formats and simpler thermal and mechanical management than pouch cells at grid-scale dimensions.
The cylindrical segment is expected to register a rapid revenue growth rate in the global lithium-ion battery market over the forecast period, driven by demand sources outside its traditional automotive and consumer electronics base. Samsung SDI began production of 46-series cylindrical batteries in March 2025, delivering the first 4695 battery modules to an American customer for micro-mobility applications, and has separately disclosed rising demand for high-power tabless cylindrical cells from professional power tool makers and from battery backup unit manufacturers serving artificial intelligence data centers, a demand source that industry suppliers say did not exist at meaningful scale before 2025.
Revenue CAGR by Segment, 2026-2035 (%)
Growth rates by primary segmentation
ⓘ CAGR from primary panel and disclosed shipment and revenue data.
Section 03
Regional Insights
Revenue Share by Region, 2025 vs. 2035 Forecast (%)
Regional shift driven by gigafactory localisation and domestic content policy
Cell Chemistry Asia Pacific — Largest Revenue Share, 2025
Based on regional analysis, the lithium-ion battery market in Asia Pacific accounted for the largest revenue share in 2025. China accounted for 82.8% of global lithium-ion battery shipments in 2025 at 1,888.6 GWh, up 55.5% year on year, according to the EVTank and Ivy Economic Research Institute white paper, with CATL and BYD the two largest global suppliers across prismatic, cylindrical and emerging form factors. South Korea's Samsung SDI reported 2025 revenue of KRW 13.27 trillion despite an operating loss, driven by cylindrical and prismatic battery orders, including a Q3 2025 disclosure of more than 110 GWh in combined 46-series cylindrical and prismatic supply agreements with global automotive groups. Japan's Panasonic Energy continues cylindrical cell production at its De Soto, Kansas facility, which opened in July 2025 as one of North America's largest battery plants, though the plant remains reliant on Japan-based technology transfer for next-generation 4680 production.
Europe
The European lithium-ion battery market is expected to register moderate revenue growth over the forecast period, constrained by high-profile gigafactory setbacks including the Northvolt bankruptcy, while remaining dependent on Chinese and Korean cell imports across all three major form factors for the large majority of automotive and stationary storage demand. The EU Battery Regulation's carbon footprint and recycled content requirements, phased in from August 2025, apply uniformly across prismatic, pouch and cylindrical form factors, and are shaping European automakers' form factor and supplier selection as much as cost or energy density considerations. Domestic European cylindrical cell production remains limited relative to Asian capacity, leaving the region reliant on imports even as pouch and prismatic cell gigafactory investment continues.
North America
The North American lithium-ion battery market is expected to register rapid revenue growth, anchored by cylindrical cell manufacturing at Panasonic Energy's De Soto, Kansas facility and Tesla's own 4680 production lines, alongside a fast-emerging demand source from artificial intelligence data center battery backup units that is placing new pressure on cylindrical cell supply independent of the automotive sector. Panasonic's repeated delay of full-scale 4680 mass production, most recently pushed back again in 2026 pending a confirmed customer purchase order, illustrates the gap between announced next-generation cylindrical capacity and actual qualified output. The Section 45X advanced manufacturing production credit and prohibited foreign entity restrictions continue to shape which cell suppliers North American manufacturers can qualify for tax-credit-eligible production across all three form factors.
Latin America
The lithium-ion battery market in Latin America is expected to register limited revenue growth from a very low base, with the region positioned primarily as a raw material supplier of lithium carbonate and hydroxide from Chile and Argentina rather than as a cell manufacturing base for any form factor. Cell manufacturers in Asia Pacific, Europe and North America continue to source battery-grade lithium feedstock from Latin American producers including SQM, Albemarle and Livent Fenix, while downstream form factor manufacturing and pack assembly capacity remains concentrated elsewhere.
Middle East and Africa
The lithium-ion battery market in the Middle East and Africa is expected to register limited revenue growth from a very low base, with the region's role concentrated in raw material supply, particularly the Democratic Republic of Congo's dominant share of global cobalt mine production relevant to nickel-based prismatic and pouch cells, rather than in cell manufacturing. Saudi Arabia and the United Arab Emirates represent the region's most active demand for finished lithium-ion battery products through large-scale battery energy storage system procurement, but domestic cell manufacturing capacity across any form factor remains at an early planning stage relative to committed production elsewhere.
Section 04
Indicative Price Trends
Lithium-ion Battery Market Indicative Price Trends, Q2 2025 vs. Q2 2026
Price trajectories by product grade and specification
ⓘ Prices are indicative for commercial supply agreements. Source: Faradex Partners primary panel.
| Product / Grade | Q2 2025 | Q2 2026 | Direction | Key Driver |
|---|
| Prismatic LFP cell
EV/ESS grade (USD/kWh) | 76 | 67 | ▼ Declining | Continued cell manufacturing overcapacity |
| 21700 cylindrical cell
power tool/BBU grade (USD/kWh) | 88 | 95 | ▲ Rising | AI data center BBU demand outpacing supply |
| 46-series cylindrical cell
automotive grade (USD/kWh) | 130 | 118 | ▼ Declining | Samsung SDI production scale-up |
| Pouch cell
consumer/EV grade (USD/kWh) | 98 | 90 | ▼ Declining | LFP substitution pressure on pouch NMC |
| Battery-grade lithium carbonate
(USD/tonne) | 10,800 | 9,600 | ▼ Declining | Continued Chinese lithium supply growth |
Section 05
Strategic Developments
August 2026
In August 2026, Shinheung SEC, South Korea, disclosed it was expanding cylindrical battery cap assembly and current interrupt device production capacity by 20% at its Malaysian plant, from 80 million to 100 million units monthly, to address a cylindrical cell component shortage driven by rising demand for battery backup units used in artificial intelligence data centers.
May 2026
In May 2026, Panasonic Energy, Japan, again delayed full-scale mass production of its 4680 cylindrical automotive battery at its Kansas facility, previously targeted for 2025 and then for the end of March 2026, pending a confirmed purchase order from its primary automotive customer, and separately repurposed some 4680-linked production lines toward data center power storage systems.
February 2026
In February 2026, Samsung SDI, South Korea, disclosed 2025 annual revenue of KRW 13.27 trillion, reported securing 46-series cylindrical cell orders and large-scale prismatic LFP contracts for energy storage systems, and confirmed it had begun supplying high-power tabless cylindrical batteries to global power tool customers.
October 2025
In October 2025, Samsung SDI, South Korea, reported securing supply contracts totalling more than 110 GWh with global automotive groups covering both 46-series cylindrical and prismatic battery formats, alongside introducing its Samsung Battery Box 1.7 and SBB 2.0 prismatic energy storage system products for local manufacturing in the United States.
March 2025
In March 2025, Samsung SDI, South Korea, began production of 46-series cylindrical batteries at its Cheonan, South Korea facility, becoming the first Korean battery maker to supply 46-series cells to overseas customers, with initial 4695 battery modules shipped from its Vietnam subsidiary for micro-mobility applications.
July 2025
In July 2025, Panasonic Energy's De Soto, Kansas facility, USA, opened as one of North America's largest battery manufacturing plants, entering volume production of 2170 cylindrical cells for electric vehicles even as the co-located 4680 technology transfer from Wakayama, Japan, remained stalled.
Section 06
Competitive Landscape
Competitive Positioning: Global Shipment Scale vs. Form Factor Breadth
Faradex qualitative competitive indices, 2025
ⓘ Faradex qualitative indices derived from disclosed shipment volumes and product line breadth. Not a financial valuation.
CATL
CHINA // Multi-format cells (prismatic, cylindrical, pouch) // 39.2% global EV battery share, 464.7 GWh installed 2025
CATL is the largest global lithium-ion battery supplier by disclosed 2025 EV battery installations, at 464.7 GWh and a 39.2% market share according to SNE Research, the only supplier globally exceeding a 30% share. Its competitive advantage rests on manufacturing scale across prismatic lithium iron phosphate cells for the bulk of its EV and energy storage volume, combined with 2025 lithium battery sales of 661 GWh across power, energy storage and other applications and manufacturing capacity of 772 GWh. CATL's ability to serve automotive, stationary storage and, increasingly, data center customers from the same manufacturing base gives it a scale advantage that single-format or single-application competitors cannot easily replicate.
| Company | Country | Specialisation | Position / Scale | Faradex Assessment |
|---|
| CATL | China | Multi-format cells (prismatic, cylindrical, pouch) | 39.2% global EV battery share, 464.7 GWh | HIGH |
| BYD | China | Prismatic Blade Battery, vertically integrated | 16.4% global EV battery share, 194.8 GWh | HIGH |
| LG Energy Solution | South Korea | Pouch and cylindrical cells | 9.2% global EV battery share, 108.8 GWh | HIGH |
| Samsung SDI | South Korea | 46-series cylindrical and prismatic cells | KRW 13.27 Tn 2025 revenue, 110+ GWh order book | MEDIUM-HIGH |
| Panasonic Energy | Japan | Cylindrical cells (2170, 4680) | De Soto, KS plant; 4680 delayed to 2026+ | MEDIUM |
| CALB | China | Prismatic and pouch cells | 5.3% global EV battery share, 62.8 GWh | MEDIUM |
| Gotion High-Tech | China | Prismatic LFP cells | 4.5% global EV battery share, 53.5 GWh | LOWER |
CATL
BYD
LG Energy Solution
Samsung SDI
Panasonic Energy
CALB
Gotion High-Tech
SK On
EVE Energy
Svolt Energy
Tesla Energy
Shinheung SEC
Section 08
Key Questions Answered
- 01What is the global lithium-ion battery market size in 2025 and what CAGR is expected during 2026-2035?
- 02What global lithium-ion battery shipment volume did EVTank and the Ivy Economic Research Institute report for 2025?
- 03Why is Panasonic Energy's 4680 cylindrical battery mass production delayed, and what has the company done with the affected production lines?
- 04What cylindrical battery component capacity expansion did Shinheung SEC announce in August 2026, and what demand source is driving it?
- 05What 2025 revenue and order book did Samsung SDI report, and which cell formats drove its automotive supply contracts?
- 06Why does the prismatic segment account for the largest form factor revenue share in the global lithium-ion battery market?
- 07Why does the cylindrical segment register the fastest revenue growth rate in the global lithium-ion battery market over the forecast period?
- 08What share of global lithium-ion battery shipments did China account for in 2025?
- 09What global EV battery installation share did CATL and BYD hold in 2025 according to SNE Research?
- 10When did Panasonic Energy's De Soto, Kansas battery plant open, and what cell format does it currently produce at volume?
Section 09
Table of Contents
Section 10
Scope of Research
This report covers the global lithium-ion battery 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.
