Italy Battery Market Size, Share & Industry 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 Italy Battery market size was worth USD 4.90 billion in 2024. It is estimated to grow to USD 5.30 billion in 2025 and reach USD 9.59 billion by 2032. The market is projected to grow at a CAGR of 8.85% during the forecast period.

Italy is experiencing a significant growth in the demand for battery energy storage systems (BESS) as it shifts toward renewable energy sources. The need for batteries in Italy is rising due to the country’s fast-paced energy transition and electrification objectives. A key factor behind this trend is the growth of renewable energy sources, especially solar and wind which demand effective energy storage solutions to manage grid variations and maintain stability. The growing use of electric vehicles (EVs), along with by government incentives and European Union decarbonization goals, is also significantly driving up the demand for lithium-ion batteries.

As per its national energy and climate plan (PNIEC), Italy aims for a total storage capacity of 22.5 GW by 2030, which includes 11 GW of utility-scale batteries, 8 GW from pumped hydro, and 4 GW in distributed residential storage. By mid-2023, approximately 2.3 GW (around 3,946 MWh) of residential-scale storage systems had already been installed, totaling 311,189 units. The grid operator Terna estimates that fulfilling the EU “Fit-for-55” decarbonization objectives will necessitate the installation of 71 GWh of new grid-scale storage (approximately 8.9 GW at an 8-hour duration) by 2030.

According to Rabobank, Italy has about 1 GW of operational grid-scale BESS, with 1.75 GW currently under construction and another 1.2 GW announced, indicating a need for roughly 11 GW more of BESS capacity to achieve a 15 GW target. Additionally, in the first half of 2024, the share of grid-connected storage systems increased by 25%, reaching a total of 4.5 GW of power; there was a notable rise in standalone, utility-scale installations. Moreover, by August 2025, Italy had approved 361 MW of new battery storage projects across the regions of Lazio, Puglia, and Sardinia.

Italy Battery Market Trends

Growing Demand for Electric Vehicle Battery Packs to Drive the Battery Market Growth

Italy battery market growth is driven by notable advancement in the "Pioneer" initiative at Rome–Fiumicino Airport, where repurposed electric vehicle battery packs (from manufacturers such as Nissan, Mercedes, and Stellantis) are now creating a 10 MWh energy-storage system, contributing to the decarbonization of airport operations and reducing approximately 16,000 tons of CO₂ over a decade.

At the forefront of long-duration storage, Energy Dome’s carbon dioxide-based battery technology is gaining momentum as its groundbreaking facility in Sardinia (20 MW) is close to completion, and is a sustainable energy solution.

Additionally, Enel is looking into a collaboration with Masdar to enhance utility-scale battery deployment in Italy, which complemented an upcoming Terna auction for energy-storage capacity in September 2025, indicating a developing market structure that offers more bidding opportunities.

Finally, Italy’s favorable regulatory environment and profitable battery revenue models have established it as one of Europe's most appealing markets for storage investment, with predictions of achieving 9 GW of battery capacity by 2030.

Key takeaways

• In the by type segmentation, lithium-ion battery accounted for around 47.67% of the Market in 2024.
• In the by state segmentation, secondary is projected to grow at a CAGR of 9.25% in the forecast period.
• In the by application segmentation, electric mobility accounted for around 54.14% of the Market in 2024.

Italy Battery Market Growth Factors

Rapid Expansion of Renewable Energy Integration & Grid Modernization to Boost Market Growth

Italy’s increasing demand for batteries is driven by a combination of interconnected factors such as renewable energy integration, grid modernization, and the growing popularity of decentralized battery systems. In addition, there is a significant surge in investments for modernizing and digitizing the grid. The national grid operator Terna has committed to investing USD 18.15 billion by 2028 and over USD 23.1 billion by 2032 to improve transmission capacity, flexibility, and interconnections across regions, essential infrastructure for large-scale battery integration. Also, the new storage models are becoming increasingly popular across the country. Vehicle-to-grid (V2G) pilot initiatives such as the 32 bidirectional fast chargers located at Turin’s Mirafiori hub allow electric vehicles to serve as distributed energy storage, promoting the use of decentralized battery systems.

• For instance, in 2024, the swift growth of renewable energy achieved a remarkable 41.2% share of electricity generation from renewables 2024, necessitating storage solutions to handle variability. Renewable capacity grew by 7.5 GW within the year, totaling 76.6 GW, alongside an increase in battery storage.

Italy Battery Market Restraints

High Upfront Capital Costs to Limit the Market Growth

The battery market in Italy faces a significant hurdle in growing due to the high initial capital expenses for large-scale lithium ion battery installations. While smaller battery systems are easier to obtain, they still involve significant upfront challenges. In Europe, including Italy, the average cost for installing battery storage in 2024 was between USD 330 USD 440 per kWh, equating to USD 330,000 and USD 440,000 per MWh. Furthermore, current projections indicate that the investment costs for rooftop PV systems with battery storage range from USD 550 to USD 770 per kWh, or USD 550,000 to USD 770,000 per MWh, which is considerably higher than conventional generation assets.

• For instance, as reported by Terna, the capital investment for utility-scale lithium-ion batteries ranges from USD 227,700 to USD 250,800 per MWh.

Segmentation Analysis

By Type

Based on type, the market is divided into lithium-ion battery, lead-acid battery, nickel-cadmium battery, nickel-metal hydride, and others.

Among these, the lithium-ion battery accounted for the highest Italy battery market share, and it is anticipated to show the fastest growth during the forecast period. Italy's increasing demand for lithium-ion batteries is fueled by a strong combination of electrification, renewable energy growth, and the expansion of infrastructure. Consequently, public charging infrastructure has seen significant growth. In addition, Italy currently boasts over 26,000 charging stations, which represented more than a 30% increase in 2023. While this improves access to EVs, the demand for grid-connected storage solutions is also on the rise, further emphasizing the importance of battery integration.

• For instance, in early 2025, sales of electric vehicles (EVs) experienced a remarkable surge, and registered units rose by 75% compared to March 2024, bringing Italy's electric vehicle count to almost 300,000 by the end of March. This surge intensifies the need for lithium-ion batteries, both for vehicles and to support grid capacity.

By State

Based on the state, the market is bifurcated into primary and secondary.

Among these, the secondary battery accounted for the highest market share, and is anticipated to grow at a faster rate during the forecast period. Italy is experiencing a rapid increase in the demand for secondary (rechargeable) batteries, fueled by government incentives and the growing popularity of energy objectives across Europe. A significant driver of this trend is the “Superbonus” tax incentive established in April 2022, which provides up to 110% in tax credits for residential green improvements, including energy storage systems, solar panels, and heat pumps. This program has significantly promoted the use of rechargeable batteries in households, particularly when paired with rooftop solar PV systems.

• For instance, Italy has received approval from the European Commission for a substantial USD 19.47 billion subsidy aimed at constructing centralized electricity storage capacity targeting the installation of 9 GW/71 GWh of long-duration storage by 2030. This considerable investment is a direct endorsement of deploying secondary batteries at the utility level.

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. Electric mobility in Italy is experiencing rapid growth, driven by increasing demand supported by robust government incentives, the expansion of infrastructure, and changing consumer preferences. In the first quarter of 2025, registrations of fully electric vehicles (BEVs) surged by 75.4% compared to the previous year, reaching a total of 23,019 units, with market share climbing from 2.9% to 5.2% relative to Q1 2024. This increase showcases both the backlog of demand due to previous delays and the newfound assurance regarding incentives. The charging network is also advancing. Furthermore, national subsidy programs persist in encouraging adoption and grid scale energy storage as of August 2025, new initiatives announced nearly USD 660 million in EV subsidies, providing up to USD 11,000 for individuals and USD 22,000 for small enterprises, provided that older combustion vehicles are scrapped. These favorable measures are specifically aimed at decreasing pollution levels and enhancing air quality in urban areas.

• For instance, by the end of December 2024, Italy had established 64,391 public charging stations, distributed across more than 33,400 infrastructures at 22,000 different sites. This enhancement of the network greatly alleviates range anxiety, a crucial obstacle to the acceptance of electric vehicles.

List of Key Companies in Italy Battery Market

Saft Groupe SA, FIAMM SpA, and EnerSys are few prominent players in the market. Saft, a battery specialist that is a part of TotalEnergies, develops and produces advanced lithium and nickel battery systems. These include energy storage solutions for renewable sources, micro-grids, and railway infrastructure, thereby aiding Italy's initiatives to enhance electrification and strengthen grid resilience. FIAMM Energy Technology S.p.A., located in Montecchio Maggiore, operates production facilities in Avezzano and Veronella. The company produces a range of batteries for automotive and industrial applications, including conventional lead-acid batteries as well as state-of-the-art lithium rack systems, serving both original equipment manufacturers and the energy storage sector throughout Italy and Europe. EnerSys, a prominent company in energy storage solutions, provides reserve and motive power batteries that are utilized across Italy in telecommunications, data centers, industrial vehicles, and energy storage applications for EV fast-charging through its “New Ventures” energy management options.

The other companies with a considerable presence in the market include EVE Energy Co. LTD, Toshiba Corporation, Exide Industries Ltd, Tesla, Inc., and other small & medium-sized market players. These companies are making strategic moves, such as expanding their battery manufacturing capacities, collaboration with automakers to boost annual production capacity, production of energy storage system battery packs, and others.

LIST OF KEY COMPANIES PROFILED

• CATL (China)
• LG Energy Solution (South Korea)
• Panasonic (Japan)
• BYD (China)
• Samsung SDI (South Korea)
• SK Innovation (South Korea)
• Saft Groupe SA (France)
• FIAMM SpA (Italy)
• GS Yuasa Corporation (Japan)
• EVE Energy Co. LTD (China)
• Toshiba Corporation (Japan)
• Exide Industries Ltd (India)

KEY INDUSTRY DEVELOPMENTS

• August 2025: Italian renewable energy developer GreenGo has received approval for its 120-MW/480-MWh battery energy storage system (BESS) project located in San Sostene, Calabria. The stand-alone storage facility is among the largest currently approved in Italy, according to the company’s announcement. In just 18 months following its acquisition, GreenGo has moved the project to a fully authorized asset, with approval granted 13 months after the application was submitted. The company now possesses a total of 249.5 MW in authorized storage capacity.
• August 2025: Italy has announced new battery initiatives totaling 648 MW. This has authorized a 120 MW battery energy storage system (BESS) designed by BESS Sessa Aurunca S.r.l. This facility will be constructed on agricultural land in Sessa Aurunca, close to Caserta, featuring 392 battery containers along with 49 power conversion systems. It will link to the grid through a newly established substation.
• March 2025: Copenhagen Infrastructure Partners (CIP) has teamed up with GC Storage Services (GCSS) through its Flagship Fund CI V to create a pipeline of large-scale battery storage systems (BESS) in Italy, totaling 2.3GW. This partnership will concentrate on launching stand-alone battery projects in both Northern and Southern Italy. The initial project is expected to be construction-ready by 2025.

REPORT COVERAGE

The Italy 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 growing battery demand across various applications, battery penetration in major markets, and technological advancements. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for Battery.

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Report Scope & Segmentation