South and Central America Battery Market to Reach US$25.80 Billion by 2035, Driven by EV Adoption and Renewable Energy Storage Demand

EV adoption, renewable integration and industrial electrification are boosting lithium-ion and grid-storage demand, creating opportunities in local manufacturing and lithium value chains

Dublin, Sept. 21, 2026 (GLOBE NEWSWIRE) -- "South and Central America Battery Market Size and Share - Growth Analysis Report and Forecast Trends (2026-2035)" has been added to ResearchAndMarkets.com's offering.

The South and Central America battery market was valued at USD 12.45 billion in 2025 and is projected to reach USD 25.80 billion by 2035, expanding at a compound annual growth rate of approximately 9.5% from 2026 to 2035. Market growth is being supported by electric vehicle adoption, renewable energy investment, industrial electrification and increasing demand for reliable backup power across the region.

Brazil, Chile and Argentina are central to the market's expansion. The electrification of transportation is increasing demand for lithium-ion and lead-acid traction batteries, while the deployment of solar and wind power is creating substantial requirements for grid-scale battery energy storage systems. Rising consumer electronics penetration and the continued automation of industrial operations are also broadening the market's long-term growth potential.

Key Market Trends and Insights

• Brazil accounted for approximately 45% of South and Central America battery market revenue in 2025. Its leading position is supported by the region's largest automotive fleet, government incentives for electric mobility and growing investment in domestic vehicle and battery manufacturing.
• Lithium-ion batteries are expected to record the highest technology growth rate, with a projected CAGR of approximately 15% from 2026 to 2035. Demand is being driven by electric vehicles, renewable energy storage projects and portable electronic devices.
• Energy storage systems are forecast to be the fastest-growing application segment. Chile's expanding solar capacity, Brazil's grid-stabilisation requirements and rural electrification programmes across the Amazon and Andean regions are supporting deployment.
• Chile is expected to emerge as the fastest-growing country market for energy storage, reflecting its renewable power ambitions and strategic position within the global lithium supply chain.

Market Size and Forecast

• Market value in 2025: USD 12.45 billion
• Projected market value in 2035: USD 25.80 billion
• Forecast CAGR from 2026 to 2035: Approximately 9.5%
• Largest market in 2025: Brazil
• Fastest-growing energy storage market: Chile

South and Central America holds a strategically important position in the global battery industry because of its extensive lithium resources and expanding renewable energy sector. Chile's Atacama Desert contains a significant share of global lithium resources, while Argentina continues to attract international investment in lithium extraction and cathode material supply chains. These advantages could support the region's transition from raw material exports to higher-value battery production, system integration and related manufacturing.

Brazil remains the principal source of automotive battery demand, supported by a vehicle fleet exceeding 50 million units and the gradual transition toward electric and hybrid mobility. Investment in Brazilian electric vehicle and battery manufacturing is strengthening the domestic supply chain and improving access to advanced battery technologies. The country's established automotive industry and large consumer market are expected to sustain its regional leadership through 2035.

Chile's renewable energy programme is another major battery market growth driver. Expanding solar and wind generation requires energy storage capacity to balance intermittent electricity production, reinforce grid reliability and support green hydrogen projects. The country's renewable energy targets and National Green Hydrogen Strategy are expected to generate sustained demand for large-scale battery installations.

Additional opportunities are emerging in Colombia and Peru, where electric bus programmes are increasing procurement requirements for traction batteries. Telecommunications networks, healthcare facilities, data infrastructure and industrial sites are also investing in backup power solutions. Meanwhile, off-grid battery systems are improving electricity access in remote communities where conventional grid expansion remains difficult.

Key Takeaways

• Brazil leads the South and Central America battery market with an estimated 45% revenue share, supported by automotive demand, electric vehicle adoption and manufacturing investment.
• Lithium-ion technology is projected to be the fastest-growing segment, driven by electric mobility, consumer electronics and renewable energy storage.
• The regional market is forecast to reach USD 25.80 billion by 2035 as transportation electrification, grid modernisation and industrial power requirements accelerate.
• South and Central America's lithium resources provide a strategic foundation for developing integrated battery supply chains and expanding regional manufacturing capacity.

Companies Featured

• Exide Industries Ltd (India)
• BYD Company Ltd (China)
• FIAMM Energy Technology (Italy)
• Panasonic Corporation (Japan)
• EnerSys (United States)
• Duracell Inc (United States)
• Samsung SDI (South Korea)
• LG Chem Ltd (South Korea)

For more information about this report visit https://www.researchandmarkets.com/r/nr9gcj

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