Industrial Lithium-Ion Battery Market Size – By Chemistry, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Industrial Lithium-Ion Battery Market Size

The global industrial lithium-ion battery market was estimated at USD 4.8 billion in 2024 and is set to grow at a CAGR of 11.9% from 2025 to 2034. Industrial lithium-ion batteries are the preferable choice of rechargeable battery used in machines, medical equipment and other heavy equipment. Increasing industrialization and urbanization is driving market growth. Moreover, rising renewable energy is also increasing demand for industrial lithium-ion batteries. Renewable energy generation capability is projected to increase by two folds by 2030 across the world. Moreover, developing countries such as China and India are witnessing growth in electrification of auto industry.
 

As the industrial lithium-ion batteries are widely used in many industrial application areas government authorities have established favorable policies to further bloom the demand for industrial lithium-ion batteries. For instance, according to the Union budget 2023, Indian government reduced the tariff on industrial lithium-ion batteries from 21% to 13%. Such initiatives would promote Make in India scheme more prominent. For similar purpose, the Indian government launched ‘Mission LiFE’ program for transfer of value-effective technology of recycling lithium-ion battery to startups and recycling firms.
 

Additionally, owing to the skyrocketing demand of industrial lithium-ion batteries, companies in the industry have enhanced their development capacity and restructured a neat distribution network; thus declining cost of lithium-ion battery. For reference, in 2023, The Ministry of Mines, India and Mineral Security Partnership (MSP) partnered to ease supply of minerals such as Nickel and Cobalt. Along with, India recorded reduction in cost of lithium-ion battery from USD 1400/kWh in 2010 to less than USD 150/kWh in 2023. All these factors are significantly increasing the demand for industrial lithium-ion battery globally.
 

Industrial Lithium-Ion Battery Market Trends

The industrial lithium-ion battery industry has been registering a noteworthy positive trend owing to growing demand for effective batteries from various industrial applications such as EV, renewable energy and others. This promotes numerous innovative initiations in the industry. Solid-state batteries being one of these innovations in the field. The technology helps with faster charging of batteries, higher energy density and improved safety against the risk of leaks and fire.
 

Well established players such as Panasonic, and CATL have announced mass production of solid-state lithium-ion batteries to achieve future opportunities for advanced batteries. Due to the enhanced heat stability and longer life cycle of batteries are favored significantly. For instance, in March 2024, a team of scientists at Harvard University created SSB enabled with faster charging as fast as a tank filling for petrol and ensures a life period of around 30 years.
 

Introduction of next generation technologies including artificial intelligence (AI) and machine learning (ML) in battery designs is another trend boosting the industrial lithium-ion battery market in focus. AI enhances the operation and safety of batteries. ML in battery provides real-time monitoring of industrial lithium-ion batteries that offer thermal management, charging-discharging and overcharging status, life period of battery.
 

Various technological innovations further improves production and performance of industrial lithium-ion batteries. Similarly, advancement in industrial lithium-ion battery manufacturing techniques is enhancing the need for industrial lithium-ion batteries. For instance, laser material processing. This technique provides accuracy, speed and reduces carbon emission owing to its electrical conductivity, minimal resistance, and improved heat management.
 

Moreover, advances for environmental conservation across the globe and policies to reduce carbon emissions of many firms are using environmental materials to design batteries. For reference, usage of elements including iron and phosphate in battery’s cathode. The iron phosphate material in cathode improves the shelf life of battery and safety to high temperature. In addition, substituting lithium ions with sodium ions further reduces cost of manufacturing and final product of batteries from 20% to 30%. 
 

Industrial Lithium-Ion Battery Market Analysis

The industrial lithium-ion battery industry reached USD 3.6 billion, USD 4.2 billion and USD 4.8 billion in 2022, 2023 and 2024 respectively.
 

• The LFP battery segment is predicted to reach over USD 4 billion by 2034. The LFP battery consists of iron phosphate as its cathode. The battery provides higher energy density, lower perishability and effective performance. These batteries are majorly used in EVs, industrial machines, marine and aviation. Owing to these factors many American companies such as Tesla, and Ford recently invested into LFP production facility.
   
• Owing to high demand for industrial lithium-ion batteries from different users such as automakers, consumer electronics, various companies and researchers have initiated to invest prominently to develop new technologies and are currently in early stages.
   
• NMC battery segment is expected to register at a 10.4% CAGR through 2034. Owing to these factors, different emerging firms including Lohum, InoBat recently invested into NMC production. In addition, various innovations and adoption of environment-friendly material for cathode development to prevent the energy leak and decline carbon emission.
   

The industrial lithium-ion battery market by application is segmented into military, heavy, industrial equipment, medical, marine and others. The military segment held 24.7% market share in 2024.
 

• Rising disposable income and growing adoption of portable devices the demand for industrial lithium-ion batteries are similarly rising. Industrial lithium-ion batteries are considered ideal choice in drones, GPS, smartphones and radios due to their compact and lightweight design and longer charge-discharge cycle. These drones and UAVs are widely used in military application. Thus, the military application segment is expected to cross USD 3.9 billion by 2034.
   
• Owing to increasing demand for metals such as iron, industrial minerals and other metals. The development of iron ore in FY 2023 crossed 275 million metric ton (MMT) from 258 MMT in FY 2022. This is projected to simultaneously increase the demand for mining equipment and other heavy equipment application segment. These factors is expected to led CAGR for heavy industrial equipment beyond 10.8% by 2034.
   
• Owing to rise in adoption of EV due to rising adoption of environmental friendly transportation and favorable government policies in the field, the industrial lithium-ion battery is expected to witness higher demand. For instance, more than 13.5 million of electric cars were sold globally in 2023. Thus reaching 40 million total number of electric cars on road as of 2023.
   

• The U.S. industrial lithium-ion battery market size crossed USD 1.2 billion, USD 1.4 billion and USD 1.6 billion in 2022, 2023 and 2024 respectively. Favorable government initiatives for battery makers in regional countries such as U.S. is estimated to boost the demand for market. For instance, in September 2024, government of the U.S. announced distribution of award money worth USD 3 billion to local 25 battery manufacturers to motivate indigenous battery production.
   
• Similarly, government support to boost the usage of EVs and development of batteries will enhance the growth of industrial lithium-ion batteries in developing nations such as China. For instance, Chinese government announced extension of its NEV tax reduction and exemption rule until 2027.
   
• Similarly, South Korean companies are putting significant efforts to rise industrial lithium-ion battery development. For instance, SK On a subsidiary of SK group in South Korea introduced strategic initiative to ease supply of domestic lithium and manufacturing and recycling of batteries to increase revenue growth of the company and for emergency management.
   
• Furthermore, Europe is observing growth in the introduction of EV thus instantaneously increasing demand for industrial lithium-ion batteries. For reference by 2030, UK is projected to develop 1.2 million of EVs a year thus enhancing demand for batteries. This growing EV adoption will aid regional market growth.
   

Industrial Lithium-ion Battery Market Share

Top 5 companies including CATL, Panasonic, LG Electronics, BYD and Samsung held a market share of over 40% in 2024. Many market players are operating in industrial lithium-ion battery industry and players are constantly working to build cost-effective industrial lithium-ion batteries.
 

Among these companies CATL is one of the major share holding player in the industrial lithium-ion battery market. Owing to its wide product offerings, vast geological footprint and business partnership with major automakers such as BMW and Ford. The demand for industrial lithium-ion battery is expected to boost as the electric vehicle industry constantly grow, especially in emerging countries such as China, and India.
 

Furthermore, supportive government regulations in the developing and developed countries and economical labor cost further decreases prices of batteries and aids strong uphold of market in the cost-sensitive group of consumers. Other top companies including Panasonic, LG Electronics, BYD and Samsung are also poised to capture significant portions of the market, particularly in affordable electric vehicles and energy storage systems sectors.
 

Some of the key players operating across the industrial lithium-ion battery industry are:

• A123 Systems
• Akku Tronics New Energy Technology
• BYD
• CATL
• Clarios
• Ding Tai Battery Company
• Duracell
• EaglePicher Technologies
• EnerDel
• ENERGON
• Energus Power Solutions
• Exide Technologies
• General Electric
• Hitachi Energy
• Koninklijke Philips
• LG Chem
• Lithium Werks
• Maxell
• SK innovation
• Padre Electronics
• Panasonic Corporation
• ProLogium Technology
• Saft
• Samsung SDI
• Tesla
• Toshiba Corporation
   

Industrial Lithium-ion Battery Market Companies

• CATL is a China based battery maker. The company holds substantial market share in industrial lithium-ion battery market. The company witnessed nearly 20-23% revenue growth in 2023 exceeding USD 57 billion. Their recent initiatives such as battery swapping and subscription based price models will enhance their objective of circular economy and rise in EV adoption. Additionally, affordable batteries have been prominently capturing heavy machineries.
   
• Panasonic a Japanese electronics company that offers in wider range of electronics including lithium-ion batteries for industrial applications. The company’s strategic partnership with automakers, including Tesla has enhanced the revenue yearly. The company’s recent investment strategies with a startup for material manufacturing of sustainable batteries is likely to capture untapped opportunities.
   
• LG Electronics a Japan based subsidiary of LG, operating wide range of electronics offering including lithium-ion batteries. The company witnessed revenue of USD 60.7 billion in 2023. Their recent strategies of mass production for semi solid batteries and introducing lithium batteries for energy storage system to expand the clientele and reduce revenue dependence on EV sector individually. The company has also invested in US based startup manufacturing lithium batteries.
   
• BYD (Build Your Dreams) a China based multinational company with global presence in both electric vehicles (EVs) and battery manufacturing. The company registered a revenue of USD 27.7 billion in Q3, 2024. In addition, recently BYD's next-generation Blade Battery is estimated to launch in 2025, featuring improvements that will boost its range and performance.
   
• Samsung is a South Korean multinational company that held around USD 54 billion revenue in 2023. The company has recently introduced an advanced SSB batteries. The company has also displayed its new batteries for UPS, ESS application range.
   

Industrial Lithium-ion Battery Industry News

• In November 2024, CATL announced the introduction of its second-generation sodium-ion battery production to be initiated in 2025. The new battery in new Freevoy battery pack and combined with conventional lithium-ion battery with superfast charging feature.
   
• In October 2024, Lithium Werks a subsidiary of reliance industry has fully acquired Faradion a sodium-ion battery technology maker based in UK. The parent company also expect to start manufacturing at its battery gigafactory with annual capacity of 30GW.
   
• In October 2024, Exide Technology an established battery manufacturer launched its next generation lithium iron phosphate battery for material handling fleets. The product offers enhanced safety, reliability and total cost of ownership.
   
• In September 2024, Clarios announced the manufacturing of 24 volt lithium ion batteries for heavy duty application range in partnership with Europe based commercial truck manufacturer. The new battery is expected to reduce its downtime and enhanced functioning of batteries.
   
• In March 2024, Panasonic announced joint venture with Indian Oil Corporation Ltd (IOCL) to develop cylindrical lithium-ion batteries. The product are majorly used in consumer electronics, EVs, and power tools.
   
• In January 2022, Toshiba under its product line SCiB battery unveiled 20Ah-HP SCiB, which is a rechargeable lithium-ion battery cell product. The new product provides both high energy and power for the heavy load applications such as fast charging of EV and industrial equipment.
   

The industrial lithium-ion battery market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Chemistry

• LFP
• LCO
• NMC
• Others

Market, By Application

• Military
• Heavy Industrial Equipment
• Medical
• Marine
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina