5 Trends Charging the Battery Market

Li-Cycle plans to open an EV battery recycling plant in Alabama that can process up to 10,000 tonnes (enough for about 20,000 EVs per year), and Ascend Elements has opened its first commercial-scale EV battery recycling facility in Georgia, which also happens to be the largest electric vehicle battery recycling facility in North America.

5. Reduced Battery Costs

Raw material and battery component shortages sent the prices of li-ion batteries soaring in recent years. Indeed, a BloombergNEF survey reported a 7% rise in average pack prices in 2022 due to the shortages, the first increase since the survey began in 2010. This has sparked concern for automakers, as the high costs associated with battery replacement are already considered a top barrier to widespread EV adoption. Nonetheless, the global battery market is worth an impressive $113.5 billion in 2024 and is expected to continue growing.

At present, EV battery packs typically range in cost from $10,000-$12,000, but with manufacturers rushing to develop viable alternatives, this looks set to change in the coming years. Sodium-ion or lithium-sulfur batteries, for example, could be up to two-thirds cheaper than lithium-ion batteries.

Battery Demand and Market Trends—Summary

It’s clear that the global battery industry continues to evolve rapidly, and is driven by strict safety measures, miniaturization, alternative technologies, recycling initiatives, and cost reduction plans. The lithium-ion battery market, in particular, could face a lithium shortage as soon as 2025. Regardless of the changes and adaptations the sector makes, it’s evident that the battery market continues to grow with no indication of slowing down in the coming years.