Global Secondary Battery Market - Size, Share, Trends, Opportunities, and Forecast, 2021-2031F | EV and Grid Storage Demand to Propel Market to USD 233.09 Billion by 2031

EV adoption, renewable energy storage, solid-state innovation and closed-loop recycling drive demand, while supply-chain diversification helps mitigate mineral risks.

Dublin, Oct. 23, 2026 (GLOBE NEWSWIRE) -- "Secondary Battery Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F" has been added to ResearchAndMarkets.com's offering.

The Global Secondary Battery Market is projected to grow from USD 115.16 billion in 2025 to USD 233.09 billion by 2031, registering a CAGR of 12.47%. Market expansion is being driven by the worldwide transition to electric mobility, rising demand for lithium-ion batteries and increasing deployment of stationary energy storage systems that support renewable power integration.

Automotive electrification remains a major source of secondary battery demand. According to the Cobalt Institute, global cobalt demand exceeded 200,000 tonnes in 2024, with the electric vehicle sector accounting for 43 percent of consumption. This share highlights the growing influence of electric vehicle production on battery materials, cell manufacturing and investment across the global supply chain.

Market Drivers: Rapid electric vehicle adoption is encouraging automakers and battery manufacturers to expand production of high-capacity lithium-ion cells. These batteries are required to increase vehicle range, support heavier electric platforms and help automotive companies meet decarbonization targets. The International Energy Agency's Global EV Outlook 2024 reported that global electric car sales reached approximately 14 million in 2023, representing a 35 percent increase from the previous year. In response to automotive-led demand, global investment in battery manufacturing climbed to USD 115 billion in 2023.

Renewable energy storage is also creating significant growth opportunities for the Global Secondary Battery Market. Utility-scale and residential battery systems help manage the variable output of wind and solar generation while supporting grid balancing, energy time-shifting and frequency regulation. In May 2024, the International Energy Agency reported that power-sector battery storage deployment more than doubled during 2023, reaching 42 GW worldwide. This growth reinforces the importance of battery technology in grid modernization and the transition away from Fossil fuel-based power systems.

Market Challenges: The concentration of critical mineral refining and battery manufacturing in a limited number of regions creates substantial supply chain risk. Dependence on a small group of production hubs leaves the market vulnerable to geopolitical instability, trade restrictions, logistical disruption and regulatory changes. These factors can increase costs, delay production schedules and slow investment in electric mobility and energy storage infrastructure.

Data from the China Automotive Battery Innovation Alliance illustrates the extent of this geographical concentration. China produced 107.8 GWh of power and other batteries in January 2025. This production volume demonstrates the global market's reliance on one major manufacturing jurisdiction and underscores the need for diversified sourcing, regional production capacity and RESILIENT supply networks.

Market Trends: The commercialization of solid-state battery technology is accelerating as manufacturers pursue higher energy density, improved safety and better performance than conventional liquid-electrolyte systems. Industry participants are investing in solid electrolyte development and automotive-grade cell validation to address thermal management and vehicle range limitations. In March 2024, Samsung SDI announced plans to mass-produce all-solid-state batteries with an energy density of 900 Wh/L by 2027.

Battery recycling and closed-loop supply chains are also reshaping the industry by increasing the recovery of lithium, nickel and cobalt from used battery packs. Hydrometallurgical processing can reduce dependence on newly mined resources and turn end-of-life batteries into a more reliable source of production materials. In October 2024, Mercedes-Benz Group AG opened a mechanical-hydrometallurgical recycling plant with annual capacity of 2,500 tonnes and a recovery rate exceeding 96 percent.

Key Market Players:

• Umicore
• Retriev Technologies
• American Battery Technology Company
• Li-Cycle
• Aqua Metals
• Battery Solutions
• Recupyl
• Gopher Resource
• Glencore Recycling
• Retech Recycling Technology AB.

Report Scope: The Global Secondary Battery Market report evaluates market size, growth opportunities and industry trends across technology, application and regional segments.

Secondary Battery Market, by Technology:

• Lead-acid Batteries
• Lithium-ion Batteries
• Others

Secondary Battery Market, by Application:

• Automotive Batteries
• Industrial Batteries
• Portable Batteries

Secondary Battery Market, by Region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Key Attributes:

For more information about this report visit https://www.researchandmarkets.com/r/mtl6vg

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