IDTechEx forecasts that the global lithium-ion (Li-ion) battery market will exceed US$325 billion by 2036, representing a CAGR of 7.0%.
Its latest research, Li-ion Battery Market 2026-2036: Technologies, Players, Applications, Outlooks and Forecasts, highlights that annual production capacity will rise from nearly 500GWh in 2020 to close to 5,000GWh by 2036. More than half of this capacity will be concentrated in China, which as of 2024 controlled over 75% of global battery output thanks to rapid gigafactory development and government subsidies.
Key suppliers include CATL, BYD and Gotion in China, LG Chem and Samsung SDI in Korea, and Panasonic in Japan. Panasonic and LG Chem continue to focus on North American and European markets. The top six players accounted for more than 65% of global sales in 2025, with CATL alone responsible for 37% of sales in 2024. By 2025, global lithium-ion battery production capacity had already surpassed 2,500GWh.
Gigafactory development remains a multi-year, high-cost undertaking, requiring US$50–100 million per GWh. Outside China, slower growth in electric vehicles and energy storage markets has limited investment, while geopolitical tensions have caused delays and cancellations. Examples include LG’s Lansing facility, initially planned with GM Motors, and Gotion’s Michigan project, which faced local opposition. Northvolt has also seen setbacks, entering bankruptcy and halting production at several sites. Lyten has moved to acquire Northvolt’s facilities, though this delays rollout in both the US and Europe.
Despite these challenges, IDTechEx expects Li-ion global capacity to nearly double over the next decade, with US and European gigafactories increasing their share of the total.
Image: Lithium-Ion Battery Production capacity by Location for 2020 to 2031, source: IDTechEx
