The Europe Li-Ion battery market is estimated is poised to grow from US$21.445 billion in 2025 to US$34.948 billion in 2030 at a CAGR of 10.26%.
Lithium-Ion batteries are based rechargeable battery chemistry and offer high energy density, temperature tolerance, and longer performance life owing to which they find applicability in charging automotive batteries, consumer electronics and energy storage system such as solar rooftops. Europe is one of the integral regions where Lithium-ion demand is gaining traction which is majorly due to booming EV adoption and investment in renewable energy storage systems.
To optimize the growing demand, various companies are investing in Europe, for instance, in July 2024. TaiSan, the UK company manufacturing sodium batteries for the automotive industry, announced a raise of £1.3 million, an investment to accelerate the development of its battery electric vehicle (BEV) technology. TaiSan is targeting a 20 percent cost saving at GWh-level, available as a drop-in solution at existing lithium-ion production facilities. Further, in May 2023, BMZ Group, a lithium-ion batteries company in Germany, announced that its Mainhausen-based subsidiary VISATRONIC GmbH, acquired in March 2023, is looking forward to a major expansion of production capacity.
The growing pollution and carbon emission has become a major concern in Europe owing to emphasis towards sustainable fuel is showing significant growth. The electric vehicles has provided future oriented approach for tackling carbon footprint owing to which demand for EV batteries is experiencing positive traction.
For instance, according to the IEA (International Energy Agency), the electric vehicle battery demand has significantly grown over the years, with an increase of 38.71% in 2022 from the previous year and 43.41% in 2023. The demand has witnessed a growth from 93 GWh/year in 2021 to 129 GWh/year in 2022 and 185 GWh/year in 2023.
Europe is one of the major regions where investment in renewable energy such as solar is booming, fueled by the implementation of zero-carbon emission policies and objective to achieve carbon neutrality. Lithium-ion batteries act as a medium of storage for the power generated through such source, and with the growing solar installation the demand for lithium-ion batteries is also anticipated to show positive traction.
For instance, according to the International Energy Agency’s “Trends in Photovoltaic Application 2024” report, the total combined solar installation capacity in Europe reached 58.2 GW for which major economies namely Germany constituted for 15 GW followed by Spain with 8.9 GW.
Besides lithium-ion batteries other battery chemistries are also available in the market such as sodium-ion batteries, lithium-sulfur battery, hydrogen fuel cell and graphene batteries. Some of these batteries such as sodium-ion are available in abundant in comparison to lithium-ion which makes their production and supply more convenient.
Hence, with the ongoing investment coupled with strategic collaboration with automakers to bolster large scale production of batteries, the market for lithium-ion will slowdown. Moreover, the geopolitical tension has impacted the supply chain of battery material across countries which is also expected to restrain the market expansion.
Based on industry, the automotive sector is expected to constitute for a remarkable market share and is poised for significant expansion fueled by the booming electric vehicle penetration in Europe. Hence, there has been a steady increase in the number of new electric car registrations from 600 in 2010 to approximately 1,74 million in 2021, accounting for 18% of new registrations as per the European Environmental Agency. These figures grew in 2022, when almost 22% of newly registered passenger cars were electric. BEVs accounted for 12.2% of overall new automobile registrations in 2022, while PHEVs represented 9.4%.
Further, numerous businesses have set themselves up to provide European-made battery cells to the electric vehicle sector. By 2023, European-produced cells were expected to provide 80% of the continent's needs. Companies are responding to the growing demand from the automobile sector as needed owing to the reserved growth potentials of up to 1,500 GWh/a, guaranteeing that a local supply of battery cells is feasible going forward.
Based on geography, Germany lithium-ion battery market is anticipated to show steady growth fueled by the growing renewable energy projects in country. Germany is one of the world leaders in the field of renewable energy, particularly wind and solar energy, the demand for efficient energy storage systems to stabilize the supply and consumption of energy is growing. In this regard, lithium-ion batteries are a good way to store excess energy coming from these renewable energy sources, thus promoting the integration of a low-carbon energy network. Technological developments in batteries are also making other metrics like energy density and developed life to improve the ubiquity of lithium-ion batteries in other voluminous non-automotive applications.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Europe Lithium Ion (Li-Ion) Battery Market Size in 2025 | US$21.445 billion |
| Europe Lithium Ion (Li-Ion) Battery Market Size in 2030 | US$34.948 billion |
| Growth Rate | CAGR of 10.26% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | Germany, France, United Kingdom, Spain, Italy, Other |
| List of Major Companies in Europe Lithium Ion (Li-Ion) Battery Market |
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| Customization Scope | Free report customization with purchase |
Europe Li-Ion Battery Market is analyzed into the following segments follows:
Page last updated on: September 23, 2025