Secondary Battery Market to Grow 5.6 Times by 2035... "Annual Growth Rate of 15.4%"

As electric vehicles are believed to be passing through the chasm phase of temporary growth stagnation, the lithium-ion battery market is steadily growing and is expected to expand 5.6 times compared to now in 10 years.

On the 21st, secondary battery market research firm SNE Research revealed in its report titled "2024 Global Lithium-Ion Battery (LIB) Application Mid-to-Long-Term Outlook" that the demand for lithium-ion batteries for small IT devices, various electric vehicles (xEV), and energy storage systems (ESS) will reach a total of 5,570 gigawatt-hours (GWh) by 2035. This is approximately 5.6 times the 994 GWh demand in 2023, with an average annual growth rate of about 15.4%.

2023~2035 Lithium-ion Battery (LIB) Market Forecast (Unit: GWh). Source: SNE Research

By application, the demand for various electric vehicles in 2035 is expected to account for 4,760 GWh, representing 85% of the total. ESS demand is projected to be 618 GWh, or 11%, while small IT device demand is expected to be 193 GWh, accounting for 3%.

Last year, demand for various electric vehicles was 700 GWh (70%), ESS was 185 GWh (19%), and small device demand was 109 GWh (11%). Electric vehicles are forecasted to grow at an average annual rate of 17.3% over the next 10 years. ESS is expected to grow by 10.6%, and small devices by 4.9%.

An SNE Research official stated, "xEV demand, including plug-in hybrid vehicles (PHEV) and battery electric vehicles (BEV), including commercial vehicles, is expected to reach approximately 74.95 million units sold by 2035," adding, "The small lithium-ion battery market, including xEVs and ESS equipped with small cells, will generate a demand of 1.3 terawatt-hours (TWh) by 2035."