Next Generation Batteries Market

Market Definition

The market refers to the industry focused on developing and commercializing advanced battery technologies that offer improved energy density, safety, lifespan, and charging speed compared to conventional batteries. 

These batteries are used in electric vehicles, consumer electronics, grid energy storage, aerospace, and medical devices, supporting the growing need for efficient, high-performance energy storage solutions across various sectors. This report outlines the primary drivers of market growth, emerging trends, and evolving regulations shaping the industry.

Next Generation Batteries Market Overview

The global next generation batteries market size was valued at USD 1940.6 million in 2024 and is projected to grow from USD 2087.9 million in 2025 to USD 3566.7 million by 2032, exhibiting a CAGR of 7.85% during the forecast period. 

The market is driven by the growing need for efficient energy storage to support renewable energy integration and grid stability. Simultaneously, solid-state batteries are emerging as a leading solution due to advances in energy density, charging speed, and commercialization progress.

Major companies operating in the next generation batteries industry are Contemporary Amperex Technology Co., Limited., LG Energy Solution, BYD Motors Inc., Gotion, Inc., Amprius Technologies, Mitsubishi Chemical Group Corporation., IDTechEx Ltd, Sion Power Corporation, EVE Energy Co., Ltd., LG Energy Solution, SAMSUNG SDI Co., Ltd., Panasonic Energy Co., Ltd., SK Inc., QuantumScape Battery, Inc., and Solid Power Inc.

The market is experiencing growth due to the rising global demand for electric vehicles, which require batteries with greater energy density, faster charging, and longer lifespan. Recent advancements such as solid-state cell validation and high-capacity battery integration into demonstration fleets have improved range and efficiency, aligning with EV performance expectations. 

As manufacturers scale up production to meet increasing EV adoption, the demand for high-performance battery technologies continues to surge, positioning next-generation batteries as essential components in the transition to cleaner, electrified transportation.

• In October 2024, Stellantis advanced its electrification strategy by integrating solid-state batteries with over 390 Wh/kg energy density into a demonstration fleet of Dodge Charger Daytona EVs on the STLA Large platform. Scheduled for launch by 2026, this initiative represents a key step toward mass-producing high-performance, next-generation electric vehicles with enhanced efficiency and cost-effectiveness.

Key Highlights:

1. The next generation batteries market size was recorded at USD 1940.6 million in 2024.
2. The market is projected to grow at a CAGR of 7.85% from 2025 to 2032.
3. Asia Pacific held a market share of 35.77% in 2024, with a valuation of USD 694.2 million.
4. The lithium-ion technology segment garnered USD 590.2 million in revenue in 2024.
5. The energy storage segment is expected to reach USD 1067.9 million by 2032.
6. Europe is anticipated to grow at a CAGR of 7.77% during the forecast period.

Market Driver

Rising Demand for Efficient Renewable Energy Storage

The market is driven by the rising demand for efficient energy storage solutions essential for integrating intermittent renewable energy sources like solar and wind. Reliable storage systems ensure grid stability, energy availability during peak demand, and reduced reliance on fossil fuels. 

Advances in battery technologies have enhanced storage capacity, charge-discharge efficiency, and lifecycle, supporting large-scale renewable deployments. As renewable energy adoption accelerates the need for advanced batteries to store and manage clean power continues to propel market growth.

• In May 2025, ABB launched Battery Energy Storage Systems-as-a-Service (BESS-as-a-Service), a Zero-CapEx solution designed to accelerate renewable energy adoption. Targeting industries like data centers and logistics, it offers a quarterly service model covering hardware, software, maintenance, and optimization.

Market Challenge

Limited Availability of Raw Materials Like Lithium and Cobalt Affects Production

The next generation batteries market faces a significant challenge due to the limited availability of critical raw materials like lithium and cobalt. These elements are essential for advanced battery chemistries and concentrated in a few geographic regions, leading to supply chain risks and price volatility.

To address this, market players are diversifying supply sources, investing in mining partnerships, and developing alternative chemistries such as sodium-ion and lithium-iron phosphate. Additionally, firms are expanding battery recycling initiatives to recover valuable materials and reduce dependence on newly mined resources, promoting long-term supply stability.

Market Trend

Adoption of Solid-State Batteries

The market is witnessing a strong shift toward solid-state batteries as a preferred energy storage solution, reflecting ongoing advancements in energy density, charging speed, and operational efficiency. Solid-state technology is gaining traction as manufacturers focus on enhancing thermal performance, expanding temperature tolerance, and enabling high-power delivery. 

With progress in validating large-format cells for practical applications, the trend indicates a move toward more reliable, compact, and efficient battery solutions, positioning solid-state batteries as a prominent innovation in the evolving energy storage landscape.

• In April 2025, Stellantis and Factorial Energy achieved a milestone by validating automotive-sized solid-state battery cells with 375 Wh/kg energy density, supporting commercial use. Factorials FEST technology enables fast charging from 15% to 90% in 18 minutes, operates between -30°C and 45°C, and delivers high power up to 4C. Stellantis plans to integrate these batteries into a demonstration fleet by 2026, focusing on pack design, vehicle integration, range, and cost improvements.

Next Generation Batteries Market Report Snapshot

Segmentation	Details
By Type	Lithium-ion, Solid-State, Sodium-ion, Flow, Zinc-ion, Others
By End Use	Electric Vehicles, Consumer Electronics, Energy Storage, Uninterruptible Power Supply, Data Centers & Telecommunication, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

 Market Segmentation:

• By Type (Lithium-ion, Solid-State, Sodium-ion, Flow, Zinc-ion, and Others): The lithium-ion segment earned USD 580.2 million in 2024 due to its widespread adoption across electric vehicles and consumer electronics driven by its high energy density, reliability, and established supply chain infrastructure.
• By End Use (Electric Vehicles, Consumer Electronics, Energy Storage, Uninterruptible Power Supply, Data Centers & Telecommunication, and Others): The electric storage segment held 29.90% of the market in 2024, due to the increasing integration of renewable energy sources and the rising need for grid stabilization and peak load management solutions.

Next Generation Batteries Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific next generation batteries market share stood at 35.77% in 2024 in the global market, with a valuation of USD 694.2 million. The Asia Pacific region dominates the market due to its robust manufacturing infrastructure and strategic investments in advanced battery production facilities. 

Significant expansion of domestic battery manufacturing capacity, strengthens the region’s ability to meet the growing demand for electric vehicles and energy storage solutions. This strong production capacity, supported by ongoing technological progress and favorable government policies, is driving the market in Asia Pacific.

• In September 2024, Subaru and Panasonic Energy collaborated to develop next-generation cylindrical lithium-ion batteries for Subaru’s BEVs. They will jointly establish a new battery factory in Oizumi, Japan, alongside production at Panasonic’s Osaka facility, targeting a combined annual capacity of 20 GWh by 2030 to meet growing BEV demand.

Europe is poised for significant growth at a robust CAGR of 7.77% over the forecast period. The next generation batteries industry in Europe is driven by significant investments in advanced battery production and technology development. Expansion of domestic manufacturing facilities and strategic collaborations enhance the region’s capacity to meet growing demand for electric vehicles and renewable energy storage.

Regulatory Frameworks

• In the U.S., the Federal Consortium for Advanced Batteries (FCAB) and the Department of Energy’s Energy Storage Research Alliance (ESRA) promote innovation and strengthen domestic supply chains to support the development and production of advanced battery technologies.
• In India, the Bureau of Indian Standards (BIS) sets safety and EV charging standards for batteries, while the Central Pollution Control Board (CPCB) regulates battery waste management and recycling, ensuring environmental compliance for next-generation battery technologies.
• In Europe, the European Commission (EC) establishes key policies and regulations, including the EU Battery Directive and the new EU Battery Regulation, which focus on sustainability, safety, and recycling standards for batteries.

Competitive Landscape

Companies in the next generation batteries market are actively pursuing strategies such as mergers, acquisitions, partnerships, and joint ventures to strengthen their market position. Key players are also investing in capacity expansions, establishing new production facilities, and launching advanced battery technologies. 

These initiatives are aimed at securing supply chains, scaling manufacturing operations, and entering new geographic markets, reflecting intensified competition and efforts to capitalize on emerging opportunities within the evolving energy storage landscape.

• In May 2024, Arkema and ProLogium strengthened their collaboration on next-generation lithium ceramic battery materials for e-mobility by exchanging a letter of intent in Paris. ProLogium plans to establish an advanced R&D lab in France and its new demonstration line in Taiwan and upcoming gigafactory in Dunkirk, France aim to support large-scale production for electric vehicle applications.

List of Key Companies in Next Generation Batteries Market:

• Contemporary Amperex Technology Co., Limited.
• LG Energy Solution
• BYD Motors Inc.
• Gotion, Inc.
• Amprius Technologies
• Mitsubishi Chemical Group Corporation.
• IDTechEx Ltd
• Sion Power Corporation
• EVE Energy Co., Ltd.
• LG Energy Solution
• SAMSUNG SDI Co., Ltd.
• Panasonic Energy Co., Ltd.
• SK Inc.
• QuantumScape Battery, Inc.
• Solid Power Inc.

Recent Developments (Agreements/New Product Launch)

• In May 2025, Samsung SDI showcased next-generation batteries in the InterBattery Europe 2025 at Messe Munich. The showcased products include UPS for AI data centers and containerized Energy Storage Systems for renewable energy, highlighting its eco-friendly technologies to a global audience.
• In March 2025, Samsung SDI began production of its 46-series next-generation cylindrical cells in the U.S., initially targeting micro-mobility applications. The company also outlined plans to expand the use of these cells into the electric vehicle segment. 
• In December 2024, QuantumScape announced the development, installation, and launch of Cobra, its next-generation heat treatment equipment for ceramic solid-state separator production. The system is designed to support scalable and cost-efficient manufacturing, contributing to the company's efforts to commercialize solid-state battery technology. Cobra enables higher-volume processing of separators, supporting the advancement of solid-state lithium-metal batteries for electric vehicle applications at an industrial scale.
• In November 2024, LG Energy Solution announced a five-year supply agreement with Rivian for 67 GWh of advanced 4695 cylindrical batteries. These next-generation batteries offer high energy density, long-range, and enhanced safety. These batteries will be produced at LG’s Arizona plant and supplied to Rivian’s Illinois facility for its R2 model.