Secondary Battery Market

Market Definition

The market covers rechargeable batteries designed for repeated use through electrochemical energy reversal. These batteries are produced using lithium-ion, nickel-metal hydride, or lead-acid formulations, depending on application needs. Manufacturing involves electrode preparation, cell assembly, and precise electrolyte filling.

They are widely used in Electric Vehicles (EVs), consumer electronics, medical devices, and industrial backup systems. The market’s scope includes evolving battery chemistries and integration into energy storage solutions.

The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Secondary Battery Market Overview

The global secondary battery market size was valued at USD 93.92 billion in 2024 and is projected to grow from USD 103.34 billion in 2025 to USD 211.72 billion by 2032, exhibiting a CAGR of 10.79% during the forecast period.

The market is driven by the rising demand for efficient energy storage in renewable power systems and continuous advancements in battery chemistry. Improved performance, safety, and lifespan of lithium-based technologies are driving the adoption of secondary batteries across industries, reinforcing their role in modern energy infrastructure and mobility solutions.

Major companies operating in the secondary battery industry are Contemporary Amperex Technology Co. Limited, BYD Company Ltd., LG Chem, Samsung SDI, Panasonic Energy Co., Ltd., Tesla, Amperex Technology Limited, EVE Energy Co., Ltd., SK On Co., Ltd., GS Yuasa International Ltd., EnerSys, Johnson Controls, Saft, Hitachi High-Tech India Private Limited, and East Penn Manufacturing Company.

The rapid adoption of EVs has created strong demand for high-performance rechargeable batteries. Secondary batteries, especially lithium-ion types, are central to EV operations, due to their energy density and long lifecycle.

Leading automotive manufacturers continue to scale EV production, pushing battery suppliers to increase capacity and invest in advanced chemistries. This growing reliance on battery-powered mobility is a key contributor to the growth of the market.

• In July 2024, Indonesia inaugurated its first EV battery plant in Karawang, West Java, a joint venture between Hyundai Motor Group and LG Energy Solution. With an annual production capacity of 10 GWh, the plant aims to supply batteries for Hyundai's EVs, including the Kona Electric SUV. This initiative is part of a $9.8 billion deal signed in 2020, positioning Indonesia as a key player in the global EV supply chain.

Key Highlights

1. The secondary battery industry size was valued at USD 93.92 billion in 2024.
2. The market is projected to grow at a CAGR of 10.79% from 2025 to 2032.
3. Asia Pacific held a market share of 57.73% in 2024, with a valuation of USD 54.22 billion.
4. The lead acid segment garnered USD 54.37 billion in revenue in 2024.
5. The motor vehicles segment is expected to reach USD 76.47 billion by 2032.
6. The automotive segment secured the largest revenue share of 41.16% in 2024.
7. The market in North America is anticipated to grow at a CAGR of 10.92% during the forecast period.

Market Driver

"Growth in Renewable Energy Storage"

The rising integration of renewable energy sources such as solar and wind has led to higher demand for energy storage systems. Secondary batteries are essential for stabilizing supply, storing excess energy, and managing grid fluctuations.

Governments and utilities across regions are adopting battery storage solutions to support clean energy goals. This shift toward decentralized and sustainable power infrastructure is accelerating the growth of the secondary battery market globally.

• In February 2025, Saudi Arabia officially connected its largest battery energy storage system (BESS) to the grid in Bisha, Asir province. The 500 MW/2,000 MWh facility, featuring 122 prefabricated storage units designed by China's BYD, is now the world's largest operational single-phase energy storage project. This development aligns with Saudi Arabia's Vision 2030, aiming to derive 50% of its energy from renewable sources.

Market Challenge

"Limited Availability of Raw Materials"

A major challenge for the growth of the secondary battery market is the limited & uneven availability of key raw materials like lithium, cobalt, and nickel. Supply chain disruptions and geopolitical risks further affect material sourcing and pricing.

Key market players are investing in battery recycling technologies to recover valuable metals from used batteries. Several manufacturers are also exploring alternative chemistries that use more abundant materials.

Strategic partnerships with mining firms and localization of supply chains are helping secure long-term access to resources, ensuring stable production and supporting the continued expansion of the market.

Market Trend

"Technological Advancements in Battery Chemistry"

Continuous improvements in battery materials, including solid-state electrolytes and silicon anodes, are making secondary batteries more efficient and safer. These innovations are extending battery life, increasing charge speed, and reducing thermal risks. With strong investment in battery R&D by private and public sectors, new formulations are being commercialized at scale. The pace of innovation influences the expansion of the secondary battery market.

• In October 2024, ProLogium Technology unveiled a 100% silicon composite anode battery, certified by TÜV Rheinland, at the Paris Motor Show. The battery achieves a volumetric energy density of 749 Wh/L and can charge from 5% to 80% in just 8.5 minutes, setting new standards for fast-charging capabilities in EVs.

Secondary Battery Market Report Snapshot

Market Segmentation

• By Type (Lead Acid, Lithium-ion, Nickel Metal Hydride, and Others): The lead acid segment earned USD 54.37 billion in 2024, due to its low cost, proven safety, and widespread use in backup power systems and automotive applications.
• By Application (Electronics, Motor Vehicles, Industrial Batteries, Portable Devices, and Others): The motor vehicles segment held 34.94% share of the market in 2024, due to the large-scale adoption of EVs, which require high-capacity rechargeable batteries for performance, range, and energy efficiency.
• By Industry Vertical (Chemical and Petrochemical, Oil and Gas, Energy and Power, Automotive, and Others): The automotive segment is projected to reach USD 89.17 billion by 2032, owing to the rising production and sales of electric vehicles, which demand reliable, high-energy-density rechargeable batteries to meet performance and emission standards.

Secondary Battery Market Regional Analysis

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

Asia Pacific secondary battery market share stood at around 57.73% in 2024, with a valuation of USD 54.22 billion. Asia Pacific is home to several of the world’s largest battery manufacturers.

Companies like CATL, LG Energy Solution, BYD, and Panasonic operate major production facilities in the region. Their large-scale manufacturing capabilities support consistent supply, economies of scale, and cost competitiveness. 

This industrial concentration significantly contributes to the growth of the market in Asia Pacific, as manufacturers are well-positioned to serve both regional and global demand. Moreover, the region has developed an integrated EV supply chain, including battery materials, cell manufacturing, module assembly, and vehicle production.

This well-established ecosystem enables faster product development and localized procurement. The mature supply chain in Asia Pacific is a crucial enabler of the sustained growth of the market across automotive and mobility sectors.

• In September 2024, Panasonic Energy completed its preparations for the mass production of 4680 cylindrical lithium-ion batteries for automotive use. The company upgraded its Wakayama facility in Western Japan to function as the primary production site for these new cells. This factory is expected to significantly improve product quality and overall competitiveness, with newly tested manufacturing processes at the site planned for rollout across Panasonic’s global production network.

The secondary battery industry in North America is poised for significant growth at a robust CAGR of 10.92% over the forecast period. The region is witnessing major investments from automakers and startups to expand its EV offerings.

Car manufacturers are securing long-term battery supply agreements and building joint battery production facilities to meet the rising demand for secondary batteries. This transition is creating consistent demand for high-capacity rechargeable batteries. The alignment of vehicle electrification with battery supply strategies continues to support the growth of the market in North America.

Regulatory Frameworks

• In the U.S., the Mercury-Containing and Rechargeable Battery Management Act (1996) regulates the sale, disposal, and recycling of nickel-cadmium and sealed lead-acid batteries, banning mercury in most battery types. The Inflation Reduction Act (2022) supports domestic battery manufacturing through EV tax credits tied to local sourcing. Additionally, export control policies under the U.S. Department of Commerce regulate the overseas transfer of advanced battery technologies for national security purposes.
• The European Union's Battery Directive (2006/66/EC) restricts hazardous substances, mandates labeling, and sets minimum targets for battery collection and recycling. The directive supports safe production and disposal practices. Additionally, the Waste Electrical and Electronic Equipment (WEEE) Directive obligates producers to finance proper recycling processes for electronic waste, including batteries.
• China’s Regulation on the Control of Pollution from Electronic Information Products (China RoHS II) restricts the use of toxic substances in batteries and requires proper labeling. National standards mandate safety, recycling, and performance benchmarks for battery production. The Ministry of Industry and Information Technology (MIIT) enforces these rules, aiming to reduce environmental risks and promote domestic battery innovation in alignment with China’s green development policies.
• Japan’s Act on the Rational Use of Energy establishes performance standards for battery efficiency and energy-saving technologies. The Waste Management and Public Cleansing Act regulates the treatment of hazardous waste, including secondary batteries, requiring proper disposal and recycling practices. These laws, managed by the Ministry of the Environment and the Ministry of Economy, Trade and Industry (METI), ensure responsible lifecycle management and promote low-emission technologies.

Competitive Landscape

Market players are focusing on expanding their product portfolios by introducing new battery technologies tailored to evolving energy storage needs. This strategic move is helping companies stay competitive and meet changing industry demands.

Manufacturers are improving battery performance while addressing specific applications like electric mobility and grid storage by investing in advanced chemistries and faster charging solutions.

• In April 2025, Contemporary Amperex Technology Co. Limited (CATL) introduced Naxtra, a new brand dedicated to its sodium-ion battery line, with mass production scheduled to begin in December 2025. Alongside this, CATL unveiled the second generation of its fast-charging battery designed for EVs. The first Naxtra-branded product will feature a sodium-ion battery with an energy density of 175 watt-hours per kilogram, closely matching the performance of widely used lithium iron phosphate (LFP) batteries.

List of Key Companies in Secondary Battery Market:

• Contemporary Amperex Technology Co. Limited
• BYD Company Ltd.
• LG Chem
• Samsung SDI
• Panasonic Energy Co., Ltd.
• Tesla
• Amperex Technology Limited
• EVE Energy Co., Ltd.
• SK On Co., Ltd.
• GS Yuasa International Ltd.
• EnerSys
• Johnson Controls
• Saft
• Hitachi High-Tech India Private Limited
• East Penn Manufacturing Company

Recent Developments (Product Launch)

• In April 2025, Jiangsu Highstar Battery Manufacturing Co., Ltd. unveiled its semi-solid-state battery production line in partnership with Guangdong Highstar and WeLion New Energy. This development marks the world’s first mass production of 314Ah high-capacity semi-solid-state batteries, ushering in the "semi-solid era" for secondary batteries. Highstar’s 314Ah prismatic semi-solid battery is also the first 1kWh-class battery cell globally to pass a 5mm nail penetration test without emitting smoke.
• In December 2024, American Battery Technology Company launched its pioneering technologies for both primary battery mineral manufacturing and secondary lithium-ion battery recycling. This achievement represents a significant milestone in the company’s efforts to fast-track the commercialization of its domestic lithium resources.