EV Battery Coolant Market

Market Definition

The market encompasses the production, distribution, and innovation of thermal management fluids designed to regulate the temperature of electric vehicle (EV) batteries. These coolants enhance battery efficiency, safety, and lifespan by preventing overheating and freezing. Key product types include water-glycol mixtures and advanced dielectric fluids.

EV Battery Coolant Market Overview

The global EV battery coolant market size was valued at USD 1,995.4 million in 2023 and is projected to grow from USD 2,076.8 million in 2024 to USD 2,814.3 million by 2031, exhibiting a CAGR of 4.44% during the forecast period.

The market is growing rapidly due to the increasing global adoption of electric vehicles, supported by favorable government policies, rising environmental concerns, and advancements in battery technology. Efficient thermal management is essential for optimizing battery performance, longevity, and safety, making high-quality coolants a critical component in EV systems.

Innovations in coolant formulations, such as dielectric fluids, nanofluids, and phase-change materials, are enhancing cooling efficiency while reducing energy consumption. Automakers and coolant manufacturers are investing in the development of eco-friendly, non-toxic, and recyclable coolants to support sustainability efforts.

Major companies operating in the EV battery coolant industry are BASF, Valvoline Global Operations, Exxon Mobil Corporation, Shell Group, BP p.l.c., TotalEnergies, NewMarket Corporation, Petroliam Nasional Berhad, Engineered Fluids, FUCHS, M&I Materials Ltd, Dober, Arteco, DuPont, Honeywell International Inc., and others.

Additionally, the expansion of fast-charging networks and high-performance EVs, which generate more heat, is boosting the demand for advanced cooling solutions. The rise of autonomous and connected vehicles is fueling the demand for intelligent thermal management systems, ehich generate sensors and AI to optimize battery temperature regulation.

• In October 2024, TotalEnergies and Valeo expanded their partnership at the Paris Motor Show to develop advanced thermal management solutions for EV batteries. The collaboration focuses on an immersive cooling system using liquid dielectric fluids to enhance battery performance, improve energy efficiency, and reduce the carbon footprint of electric vehicles.

Key Highlights

1. The EV battery coolant industry size was valued at USD 1,995.4 million in 2023.
2. The market is projected to grow at a CAGR of 4.44% from 2024 to 2031.
3. North America held a share of 33.75% in 2023, valued at USD 673.5 million.
4. The glycol-based segment garnered USD 1,080.2 million in revenue in 2023.
5. The lead acid segment is expected to reach USD 1,083.5 million by 2031.
6. The battery electric vehicles segment is projected to generate a revenue of USD 1,163.7 million by 2031.
7. Asia Pacific is anticipated to grow at a CAGR of 5.28% over the forecast period.

Market Driver

"Optimizing EV Performance and Battery Longevity"

The growth of the EV battery coolant market is driven by the increasing demand for ultra-fast charging solutions and the growing emphasis on improving battery longevity and efficiency. As the adoption of electric vehicles accelerates, the demand for reduced charging times is increasing among consumers and fleet operators.

However, ultra-fast charging generates substantial heat within battery systems, which can degrade performance and shorten battery lifespan if not properly managed.

This has led to a rising need for innovative cooling solutions that can efficiently dissipate heat, maintain optimal battery temperatures, and support faster charging without compromising safety or energy efficiency. Technologies such as direct liquid cooling and immersion cooling are gaining traction for their superior heat dissipation compared to traditional methods.

Furthermore, manufacturers are focusing on enhancing battery longevity and energy efficiency by optimizing thermal management systems. Effective cooling solutions prevent excessive temperature fluctuations, which can lead to battery degradation over time.

Advanced cooling technologies extend stable operating temperatures, thereby extending battery life, improving vehicle performance, and enhancing energy efficiency.

As electric vehicles gain mainstream adoption, automakers and battery manufacturers are investing heavily in innovative cooling systems to maximize battery lifespan and ensure long-term cost efficiency and sustainability.

• In October 2024, Hyundai Mobis announced the development of a new battery cell cooling material, the ‘Pulsating Heat Pipe’ (PHP). Comprising aluminum alloy and refrigerant, the PHP enhances heat dissipation and reduces charging time by stabilizing internal battery temperatures.

Market Challenge

"Thermal Management Challenges"

A major challenge hindering the expansion of the EV battery coolant market is ensuring effective thermal management while maintaining compatibility with evolving battery chemistries. As EV technology advances, battery systems are becoming more compact with higher energy densities, resulting in greater heat generation.

Without effective thermal management, this can lead to thermal runaway, battery degradation, and safety risks such as fires or explosions. Inadequate cooling can also reduce charging speeds and limit vehicle performance.

Additionally, selecting an appropriate coolant for EV batteries is increasingly complex due to their diverse chemical compositions. Coolants must provide high thermal conductivity, chemical stability, and electrical insulation to prevent short circuits. Moreover, rising sustainability demands are boosting the development of non-toxic, biodegradable, and environmentally friendly formulations.

To address these issues, manufacturers are developing advanced cooling technologies such as immersion cooling, which submerges battery cells in dielectric fluids, and Nanofluid-based coolants enhanced with thermally conductive nanoparticles to improve heat transfer properties.  

Market Trend

"Advancements in Thermal Management Solutions"

The EV battery coolant market is witnessing notable growth, fueled by the need for improved thermal management and battery efficiency. A prominent trend is the adoption of immersion cooling technology, which involves submerging battery cells in dielectric fluids to enhance heat dissipation.

This method offers superior temperature regulation, reduces the risk of thermal runaway, and enables ultra-fast charging, making it a preferred solution for next-generation electric vehicles.

As EVs demand higher energy densities, immersion cooling is emerging as an effective solution to ensure optimal battery performance and longevity. Another key trend influencing the market is the development of innovative cooling materials designed to improve heat transfer efficiency.

Advanced materials, such as phase-change substances, metal-based composites, and specialized thermal interface solutions, are being integrated into cooling systems to enhance battery safety and optimize energy efficiency. These materials help stabilize battery temperatures during fast charging and extreme conditions, thereby improving vehicle performance.

• In January 2024, Arkema launched its Foranext Gaseous Thermal Barrier (GTB) line, specifically designed to enhance EV battery safety by preventing thermal runaway propagation. This innovative technology works in conjunction with immersion cooling fluids, forming a gaseous barrier around overheating battery cells to minimize fire risks.

EV battery coolant Market Report Snapshot

Segmentation	Details
By Coolant	Glycol-based, Water-based
By Battery	Lead Acid, Lithium-Ion, Others
By Vehicle	Battery Electric Vehicles, Hybrid Electric Vehicles, Plug-in Hybrid Electric Vehicles
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, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Coolant (Glycol-based and Water-based): The glycol-based segment earned USD 1080.2 million in 2023 due to its superior heat transfer properties, corrosion resistance, and widespread use in modern EV thermal management systems.
• By Battery (Lead Acid, Lithium-Ion, and Others): The lead acid segment held a share of 38.45% in 2023, attributed to its cost-effectiveness, reliability, and continued use in auxiliary power applications in electric vehicles.
• By Vehicle (Battery Electric Vehicles, Hybrid Electric Vehicles, and Plug-in Hybrid Electric Vehicles): The battery electric vehicles segment is projected to reach USD 1,163.7 million by 2031, propelled by the increasing adoption of fully electric cars, advancements in fast-charging technology, and government incentives promoting zero-emission transportation.

EV Battery Coolant Market Regional Analysis

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

North America EV battery coolant market accounted for a substantial share of 33.75% in 2023, valued at USD 945.7 million. This growth is charaterized by the strong presence of leading EV manufacturers, advancements  in thermal management technologies, and environmental regulations promoting sustainable coolant solutions.

The regional market benefits from high EV adoption rates, significant investments in electric mobility infrastructure, and government incentives that promote the development of efficient battery cooling systems.

The U.S. and Canada have introduced policies to support electric vehicle production through tax credits, emission reduction targets, and investments in EV battery technology.

Furthermore, North America hosts leading leading automotive and battery technology companies, fostering innovation in high-performance coolants that enhance EV efficiency. Rising consumer demand for long-range, high-performance EVs and the expansion of fast-charging networks are fueling the need for advanced cooling solutions.

Additionally, collaborations between automakers and coolant manufacturers are accelerating the development of next-generation thermal management fluids aligned with evolving safety and sustainability standards.

Asia Pacific EV battery coolant industry is expected to register the fastest CAGR of 5.28% over the forecast period. This growth is stimulated by the rapid expansion of the electric vehicle industry, increasing production capacity of EV batteries, and strong government initiatives to promote electric mobility.

Countries such as China, Japan, and South Korea are at the forefront of battery technology innovation, leading to a high demand for efficient thermal management solutions.

China, as the largest producer and consumer of electric vehicles, has adopted aggressive policies to support EV adoption, including subsidies, investments in battery production, and strict emission regulations.

Japan and South Korea are are at the forefront of high-performance lithium-ion batteries development, highlighting the need for advanced cooling solutions to enhance efficiency and safety.

Moreover, Asia Pacific is witnessing increasing investments from global automakers and battery manufacturers due to cost advantages and raw material availability. The rising demand for two-wheelers and commercial EVs, particularly in densely populated countries, is further underscoring the need for effective battery cooling solutions.

Additionally, advancements in coolant formulations, including non-toxic and biodegradable options, are gaining traction in line with regional sustainability goals.

• In February 2024, NORMA Group partnered with an Indian SUV manufacturer to  supply customized cooling water systems for its all-electric SUV fleet. The partnership aims to enhance vehicle efficiency and reduce weight through advanced thermal management solutions. Between 2024 and 2030, approximately 700,000 vehicles are expected to be equipped with NORMA Group’s technology.

 Regulatory Frameworks

• In the United States, EV battery coolants are regulated under the Toxic Substances Control Act (TSCA) to ensure the safety of chemical substances used in coolant formulations. The Environmental Protection Agency (EPA) oversees environmental compliance, including restrictions on hazardous substances, while the National Highway Traffic Safety Administration (NHTSA) sets guidelines for battery safety, including coolant leak prevention.
• In the European Union, EV battery coolants must comply with Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulations, , which govern the safe use of chemicals. The European Chemicals Agency (ECHA) monitors the presence of hazardous substances in coolant formulations.

Competitive Landscape

The EV battery coolant industry is characterized by continuous innovation, strategic collaborations, and increasing investments in advanced thermal management solutions. Key market players are developing high-performance, long-lasting, and environmentally friendly coolants to meet the evolving demands of the electric vehicle industry.

Research and development efforts are directed toward improving heat dissipation, reducing electrical conductivity, and enhancing the compatibility of coolants with next-generation battery technologies.

Companies are actively engaging in strategic partnerships with automakers and battery manufacturers to co-develop customized cooling solutions optimized for specific EV models.

Numerous industry leaders are expanding their production capacities and establishing manufacturing facilities in key regions to strengthen their supply chain and meet growing demand. Additionally, mergers and acquisitions are  being undertaken to strengthen market positions and access advanced technologies.

Sustainability remains a major focus, with investments in biodegradable, non-toxic coolants that align with global environmental regulations. Companies are also adopting smart thermal management systems using sensors and AI to enhance coolant performance and battery efficiency.

Furthermore, businesses are expanding their distribution networks and forming alliances with EV infrastructure providers to support integrationwithin the expanding electric mobility ecosystem.

• In February 2025, Israeli automotive startup Carrar announced plans to raise USD 18 million to establish its first EV battery system production line near Sderot. Specializing in immersion cooling technology  for thermal management and performance enhancement, the company intends to use the funds to expand its workforce and develop scalable production lines near major automakers.

List of Key Companies in EV Battery Coolant Market:

• BASF
• Valvoline Global Operations
• Exxon Mobil Corporation
• Shell Group
• BP p.l.c.
• TotalEnergies
• NewMarket Corporation
• Petroliam Nasional Berhad
• Engineered Fluids
• FUCHS
• M&I Materials Ltd
• Dober
• Arteco
• DuPont
• Honeywell International Inc.

 Recent Developments (New Product Launch)

• In March 2025, TI Fluid Systems introduced a 12V Electric Coolant Pump (eCP) for battery electric vehicles (BEVs) to enhance thermal management efficiency. The eCP features a scalable power range, eco-friendly design, and low noise operation while ensuring precise temperature control.
• In October 2024, XING Mobility unveiled its IMMERSIO CTC battery prototype at the Paris Motor Show. Featuring immersion cooling technology, it enhances fire safety, energy efficiency, and range by integrating battery cells into the chassis.
• In August 2023, MAHLE introduced a bionic battery cooling plate inspired by natural structures, enhancing  cooling performance by 10%, reducing pressure loss by 20%, and ensuring uniform temperature distribution for faster charging and longer battery life.