Europe Battery Market Size, Share & Analysis, By Type (Lithium-ion Battery, Lead-acid Battery, Nickel–cadmium Battery, Nickel-metal Hydride Battery, and Others), By State (Primary and Secondary), By Application (Electric Mobility, Energy Storage, Consumer Electronics, and Others), and Regional Forecast, 2025-2032

The Europe battery market size was worth USD 27.80 billion in 2024 and is estimated to grow to USD 30.40 billion in 2025. The market is projected to be worth USD 60.32 billion in 2032, exhibiting to grow at a CAGR of 10.28% during the forecast period.

The increase in electric vehicle (EV) adoption is one of the most significant factors for the growth of the Europe market. EU emission limits, government incentives, and changing consumer behaviors favoring clean mobility purchasing decisions are driving EV sales across the region. Electric vehicles require lithium-ion battery sourcing for performance and range. An increase in production and sales of EVs creates yet another straight line increase in battery demand. Regarding individuals outside of manufacturers, European automakers Volkswagen, BMW, Stellantis, and others are planning major battery production infrastructure to meet the growing demand, as are aspiring new battery companies, including start-up Northvolt.

In August 2025, Lyten, the world leader in lithium-sulfur batteries, announced they signed a binding agreement to acquire Northvolt's remaining assets in Sweden and Germany. The assets being acquired include Northvolt Ett and Ett Expansion (Skellefteå, Sweden), Northvolt Labs (Västerås, Sweden), and Northvolt Drei (Heide, Germany). Lyten is also acquiring all of the remaining Northvolt intellectual property (IP), and many members of the current Northvolt executive team plan to transfer to Lyten.

Europe Battery Market Trends

Increase in Solid-State and Next-Gen Batteries to Drive Market Growth

The battery industry in Europe is about to be spurred by the focus on solid-state and next-generation batteries. Solid-state batteries have higher energy density, charge faster, are safer, and last longer than lithium-ion batteries. Volkswagen, BMW, Stellantis, and new entrants such as Northvolt, Verkor, and Inobat are heavily investing in research, development, and pilot production of solid-state batteries and next-gen chemistries. In addition, the European Battery Alliance, backed by the EU, is also innovating and scaling technologies with advanced chemistries to decrease reliance on imports, thereby boosting Europe's competitive edge in the global battery supply chain.

In February 2024, ACC (Automotive Cells Company), a European battery cell manufacturer, announced that it had secured €4.4 billion (USD 4.7 billion) in debt financing aimed at funding the construction of three gigafactories focused on lithium-ion battery cell production located in France, Germany, and Italy.

Key takeaways

• In the by application segmentation, electric mobility accounted for around 54.72% of the Europe battery Market in 2024.
• In the by type segmentation, lithium-ion battery is projected to grow at a CAGR of 11.10% in the forecast period.
• In the by state segmentation, the secondary battery accounted for around 69.98% of the Europe battery Market in 2024.
• The Europe battery Market in Germany was worth USD 8.63 billion in 2024.
• In the by region segmentation, Germany is projected to grow at a CAGR of 12.51% in the forecast period.

Europe Battery Market Growth Factors

EU Green Deal and Net Zero Goals to Boost Market Growth

The two major influencing factors for the Europe market, driving change, are the European Green Deal and the EU's objective to achieve net-zero carbon emissions by 2050. EVs (electric vehicles), renewable energy, and energy storage systems are driven by these initiatives, which require advanced batteries, often referred to as battery storage. The European Union (EU) is supporting domestic production of batteries to achieve net-zero emissions by 2050 by supporting national projects through the European Battery Alliance. Further, pressing forward in R&D and sustainable chemistries to turn batteries into a net-zero product, and supporting the proliferation of gigafactories. This massive policy push is increasing demand for batteries and decreasing reliance on imports, generating momentum in the region and growth of the larger regional market.

In November 2023, Stellantis, a major automaker, and CATL, a Chinese company, announced plans to establish a European facility to manufacture lithium-iron-phosphate (LFP) batteries. The two companies entered a non-binding memorandum of understanding (MoU), which highlighted details of the roadmap and future value chain opportunities in the region.

Europe Battery Market Restraints

Supply Chain Disruptions to restrain Market Growth

The Europe market is extremely reliant on imports of key raw materials (e.g., lithium, cobalt, nickel, and graphite, of which almost all are mined and processed outside of Europe). There are already relatively limited facilities for domestic mining and refining. If locations are not based in Europe, then significant reliance will correspondingly be facilitated through suppliers within China, Congo, Chile, and Indonesia. This reliance will expose the market to volatility affixed to political relations (i.e., foreign affairs crises), unexpected government policies (i.e., trade- or export-regulations, export bans, and others), and shipping delays which would affect supply, cost, and material shortages.

As demand for EV and energy storage batteries is rapidly increasing globally, competition for these raw materials is also growing. Consequently, these vulnerabilities in the supply chain will slow the progression of gigafactories and add higher production costs. However, ultimately limit Europe’s prospects of delivering on its EV and renewable energy capacity targets and unavoidably restrict growth in the market.

Europe Battery Market Segmentation Analysis

By Type

Based on type, the market is divided into lithium-ion battery, lead-acid battery, nickel-cadmium battery, nickel-metal hydride battery, and others. Among these, the lithium-ion battery accounted for the highest market share and it is anticipated to show the fastest growth during the forecast period.

The dominance of lithium ion batteries in the Europe market is due to Europe being among the fastest growing markets for electric vehicles, due to strong EU regulations on emissions, sufficiently available subsidies, and consistent demand from consumers, promoting the use of lithium-ion batteries. The growing use of renewables, from solar and wind projects, also requires large-scale energy storage systems, where lithium-ion batteries are being used for this purpose. For instance, the lithium iron phosphate (LFP) is a lithium-ion battery chemistry known for its high safety, long cycle life, and thermal stability, making it widely used in electric vehicles and stationary energy storage.

In May 2024, A sodium-ion battery venture coordinated by German battery manufacturer Varta AG received EUR 7.5 million (USD 8 million) in funding from the Federal Ministry of Research and Education.

Lead acid batteries are growing in demand across Europe. This is due to their affordability, proven reliability, and their predominant role in traditional vehicles for starting, lighting, and ignition (SLI). Lead-acid batteries are also critical in backup power applications (telecom towers, UPS, and data centers) where affordability and proven operation are essential.

By State

Based on state, the market is bifurcated into primary and secondary. Among these, the secondary battery accounted for the highest Europe battery market share, and it is anticipated to grow at a faster rate during the forecast period.

The European battery market is dominated by secondary batteries (rechargeable batteries, including, but not limited to, lithium-ion and lead-acid) due to their viability for reusability, affordability over an extended time horizon, and suitability for high-utilization applications. The growth of electric vehicles (EVs) and the use of renewable energy for energy storage systems has driven demand for rechargeable batteries, particularly lithium-ion batteries.  In September 2024, the BMW Company launched a new era of e-mobility models named NEUE KLASSE. This model is leveraging, for the first time, newly developed round battery cells that are optimized for the new architecture.

In Europe, the primary battery segment is the second dominant segment of the battery market. Primary batteries are widely used in low-drain and portable applications due to critical attributes for these applications: long shelf life and reliability.

By Application

Based on application, the market is segmented into electric mobility, energy storage, consumer electronics, and others. Among these, electric mobility accounted for the highest share, and it is anticipated to show the fastest growth.

The electric mobility sector is the largest segment of the battery market, and the automotive sector is quickly growing within the Europe market due to the rise of electric vehicle (EV) adoption and hybrid vehicles, largely helped along by EU emission regulations, government incentives, and consumer demand for clean mobility.

In July 2024, Ampere is leading the company's pioneering battery plan for the Renault Group with LFP technology and Cell-to-Pack solutions. A strategic plan that will cause enormous changes in record time. It is evidence of Ampere's commitment to drastically reducing vehicle costs and democratizing electric mobility in Europe.

The consumer electronics segment is expanding within the Europe market due to increasing demand for smartphones, laptops, tablets, wearables, and IoT-enabled devices. Lithium-ion batteries are preferred energy sources as they have good energy density with a lightweight construction and long cycle life.

By Country

Based on country, the market is segmented into the U.K., Germany, France, Italy, Spain, and rest of Europe.

The European battery market is expanding due to electric vehicle (EV) growth, increasing renewable energy storage systems, and strong policy support from the European Union's Green Deal and Net Zero targets. There is a concerted effort by major automotive manufacturers and energy companies to build regional supply chains through numerous investments into gigafactories and advanced battery technologies, including solid-state and next-generation lithium-ion. Europe battery market growth is pushed further by increasing demand from consumer electronics, industrial applications, and backup power systems.

In August 2024, the European competition authority approved two joint ventures between Suez, Eramet, and the Renault subsidiary, The Future Is Neutral (TFIN). The joint ventures will operate in the recycling of end-of-life batteries from electric vehicles (EVs) and rejects and scrap from the production of lithium-ion batteries (LIB).

The German battery market is expanding due to the country representing Europe's automotive heartland and the significant push toward electrification and renewable energy. Germany is home to leading automotive makers such as Volkswagen, BMW, and Mercedes-Benz, which are investing heavily in electric vehicle (EV) and domestic battery production.

List of Key Companies in the Europe Battery Market

Northvolt, ACC, and Britishvolt are prominent battery makers in the European battery industry, focused on manufacturing EV batteries, relevant regional gigafactories, and partnerships with major automobile manufacturers.

In March 2025, LG Energy Solution announced it had signed an agreement with PGE (Poland's largest company in the energy sector) to supply 981MWh of grid-scale ESS batteries in 2026-2027. The two companies will work together to develop a battery energy storage plant in Żarnowiec, Poland, where PGE plans to launch the project commercially in 2027.

LIST OF KEY COMPANIES PROFILED

• CATL (China)
• LG Energy Solution (South Korea)
• Panasonic (Japan)
• BYD (China)
• Samsung SDI (South Korea)
• SK Innovation (South Korea)
• GS Yuasa Corporation (Japan)
• Saft Groupe SA (France)
• FIAMM SpA (Italy)
• Toshiba Corporation (Japan)
• EnerSys (U.S.)
• East Penn Manufacturing Co. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• In June 2025, SAMSUNG SDI announced that it signed an agreement with Tesvolt, the German full-service provider of innovative energy storage solutions for public utilities and commerce, to supply batteries for energy storage systems. Under the terms of the agreement, SAMSUNG SDI will supply SBB (SAMSUNG Battery Box) to Tesvolt by the end of the month. Tesvolt is to integrate with the Samsung Battery Box (SBB), the power conversion system (PCS), and the cybersecurity system, and use its own proprietary ESS solution for European customers.
• In December 2024, Volkswagen Group will invest C$69 million (USD 48.1 million) for a 9.9% stake in lithium miner Patriot Battery Metals to secure raw materials for electric vehicles. This investment is the European carmaker’s first in the mining sector. It includes a deal to provide Volkswagen with 100,000 metric tons of lithium over 10 years. This amount represents a quarter of the production from the first phase of Patriot Battery Metals’ project in Canada, according to the mining company.

REPORT COVERAGE

The Europe battery market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the growth in the battery market. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for the Europe market.

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