Batteries' importance is increasing across key sectors including autos, power, data centres and beyond
The global lithium-ion battery market exceeded USD 150 billion in 2025, an increase of over 20% from 2024, but its economic and strategic significance extends far beyond market size. Batteries are becoming a cornerstone of the automotive sector, a critical source of flexibility for power systems, and an increasingly important source of back-up power for digital infrastructure, including data centres and artificial intelligence.
Beyond energy, batteries remain indispensable for a wide range of industrial and strategic applications, from portable electronics and unmanned defence systems to emerging technologies such as humanoid robots. As applications diversify and costs continue to fall, batteries are evolving into a foundational component of modern economies. This shift carries far-reaching implications for economic competitiveness, supply security and industrial policy, as battery supply chains remain highly concentrated and technologically complex.
These dynamics are already evident in battery deployment trends, as declining costs and expanding applications continue to drive rapid growth of demand for batteries across sectors.
Battery uptake is expanding around the world amid falling costs
Global lithium-ion battery deployment in 2025 was six times as high as in 2020. Electric vehicles remain the dominant driver of demand, with global sales reaching a new record and accounting for one-in-four cars sold globally. Electric vehicles account for more than 70% of total lithium-ion battery deployment. This is followed by battery energy storage at over 15%, reflecting the growing role of batteries in providing flexibility in power systems.
The situation represents a profound shift from a decade ago. In 2015, nearly half of global battery demand came from portable electronics; by 2025, this share had fallen to below 5%.
