Nickel Metal Hydride (NiMH) Battery Market

The global nickel metal hydride battery market size was USD 3.40 Billion in 2025 and is expected to register a revenue CAGR of 6.9% during the forecast period. Market revenue growth is supported by continued record hybrid electric vehicle demand, with Toyota selling 4.4 million hybrid vehicles globally in 2025, more than any other automaker, and hybrids accounting for nearly 40% of Toyota's global sales in fiscal year 2025. Toyota Battery Co., formerly known as Primearth EV Energy (PEVE) and renamed effective October 1, 2024 following Toyota's March 2024 buyout of Panasonic's remaining stake, remains the world's largest disclosed dedicated hybrid battery manufacturer, producing prismatic nickel metal hydride and lithium-ion battery packs at its Kosai, Shizuoka and Taiwa, Miyagi facilities in Japan. These are some of the key factors driving revenue growth of the market.

Prismatic nickel metal hydride battery manufacturers, cylindrical and AA/AAA-format rechargeable nickel metal hydride cell manufacturers, and bipolar nickel metal hydride developers are the commercial categories that constitute the nickel metal hydride battery market, with hybrid electric vehicle powertrains the dominant demand source ahead of consumer rechargeable batteries and industrial and medical applications. For instance, in August 2026, Toyota announced plans to roll out next-generation hybrid batteries beginning in 2027, targeting 5 million hybrid sales in a single year and converting Japanese battery production lines serving approximately 600,000 vehicles to the new pack design, though the company did not disclose the chemistry of the next-generation battery, leaving open whether it will be an improved nickel metal hydride design, a lithium-ion pack, or another chemistry entirely.

However, Toyota, the market's largest single demand source, has been progressively shifting its highest-volume nameplates toward lithium-ion battery packs, with lithium-ion already equipping the Prius, Corolla, Corolla Cross, and higher trim levels of the RAV4 in key markets, even as the company states that bipolar nickel metal hydride remains its preferred choice for hybrid models sold in other markets. This chemistry bifurcation within a single automaker's own hybrid lineup, rather than a uniform industry-wide shift away from nickel metal hydride, creates genuine ambiguity about the technology's medium-term trajectory, and Toyota's undisclosed chemistry choice for its 2027 next-generation hybrid battery programme leaves the largest single swing factor in this market's forecast unresolved. These factors substantially limit nickel metal hydride battery market growth over the forecast period.

Based on type, the global nickel metal hydride battery market is segmented into prismatic, cylindrical and AA/AAA-format, and bipolar architectures. The prismatic segment commands the largest revenue share because Toyota Battery Co. and other hybrid powertrain suppliers manufacture the large majority of automotive nickel metal hydride packs in prismatic cell format, optimised for the specific voltage, packaging and thermal management requirements of hybrid electric vehicle battery packs, a format that has proven reliable enough that, according to industry sources, more than 16 million Toyota hybrids have been sold globally without a single battery-pack fire caused by thermal instability.

The bipolar segment is expected to register the fastest revenue growth rate in the global nickel metal hydride battery market over the forecast period, from a smaller base than conventional prismatic designs. Toyota has continued deploying bipolar nickel metal hydride architecture in select hybrid models as an alternative to lithium-ion, with the company describing bipolar nickel metal hydride as remaining the preferred choice in markets outside the United States even as its flagship US nameplates including the Prius and Corolla have moved to lithium-ion, reflecting bipolar NiMH's ability to narrow the power density gap with lithium-ion while retaining nickel metal hydride's non-flammable, dendrite-free safety profile.

• 01What is the global nickel metal hydride battery market size in 2025 and what CAGR is expected during 2026-2035?
• 02How many hybrid vehicles did Toyota sell globally in 2025, and what share of Toyota's sales did hybrids represent?
• 03What is Toyota Battery Co., and how did it come to be a wholly owned Toyota subsidiary?
• 04What next-generation hybrid battery plans did Toyota announce in August 2026, and what chemistry will they use?
• 05Which Toyota nameplates use lithium-ion batteries instead of nickel metal hydride, and which continue to rely on NiMH?
• 06Why does the prismatic segment account for the largest type revenue share in the global nickel metal hydride battery market?
• 07Why does the bipolar segment register the fastest revenue growth rate in the global nickel metal hydride battery market over the forecast period?
• 08What safety record has nickel metal hydride demonstrated across Toyota's hybrid vehicle fleet?
• 09Why does Asia Pacific lead the global nickel metal hydride battery market by 2025 revenue share?
• 10What was Prime Planet Energy & Solutions, and how does it differ from Toyota Battery Co.?

This report covers the global nickel metal hydride 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.