Battery Materials Market

How big is Battery Materials Market in 2026?

The battery materials market is estimated at USD 64.5 billion in 2025 and is expected to reach USD 68.4 billion in 2026. Sales of battery materials are projected to grow at a 6.1% CAGR and reach USD 123.7 billion by 2036.

Adoption of battery materials is widening from car packs into grid storage and two-wheelers, with USD 64.5 billion estimated for the battery materials market in 2025. For 2026, sales of battery materials are expected at USD 68.4 billion, and a 6.1% CAGR through 2036 is projected to raise them to USD 123.7 billion. Albemarle reported an average realized price of USD 19.53 per kg of lithium carbonate equivalent for the June 2026 quarter, up 60.5%, and Energy Storage volume rose 11% to 65 kT.[1] Cathode makers pass lithium costs to cell plants through index-linked contracts, so each tonne of cathode shipped in 2026 carries a higher invoice value even before volumes grow.

For cell makers and carmakers, the recent results also change the contract terms on offer. Umicore said earnings in Battery Materials Solutions increased in the first half of 2026, mostly on accruals for take-or-pay compensation linked to contractual volumes, as selected customer platforms ramp up at a slower pace.[2] A delayed vehicle programme now turns into a cash payment to the cathode supplier, so purchasing teams are signing smaller committed volumes with options for later years. In FMI's estimate, index-linked lithium pricing paired with flexible volume bands will give buyers the lowest cost risk through 2036.

Key Market Trends & Insights

• Lithium-ion materials are expected to hold 62.9% of battery type sales in 2026, with lead-acid grids, oxides and plates at an estimated 30.4%. Higher cathode material prices turned operating profit at LG Chem Advanced Materials positive in Q2 2026, on KRW 999 billion of division revenue.[3]
• Within application, car traction packs lead, and electric vehicles are projected to hold 38.5% share in 2026, ahead of starter batteries under automotive at about 21.4% and portable devices near 17.6%.

Regional Highlights

• New lithium-ion cell plants for two-wheelers and cars put India at 6.9% through 2036, ahead of the 6.1% global CAGR and first in the country table.
• New film and cathode projects hold Canada and South Korea within 0.1 point of each other, at 6.6% and 6.5%. Cell plant build-outs keep the United States at 6.4%, with Germany two-tenths of a point behind at 6.2%. Mature cell fleets leave the United Kingdom at 5.8% and Japan, the slowest, at 5.7%.
• AESC opened cell production at Sunderland in December 2025 with an initial 15.8 GWh of capacity for the third-generation Nissan Leaf.[4]

Market Size & Forecast

Table 1: Market Size and Forecast for the Battery Materials Market (USD billion and percentage), 2025 to 2036

Metric	Value
2025 Market Size	USD 64.5 billion
Estimated Market Size in 2026	USD 68.4 billion
Projected Market Size by 2036	USD 123.7 billion
CAGR, 2026 to 2036	6.1%
Added Revenue, 2026 to 2036	USD 55.3 billion
Market Expansion Multiple	1.8x

Orders for battery materials follow cell plant start-ups, as each new line qualifies cathode, anode, separator and electrolyte suppliers over several months of sample testing before volume buying begins. LG Chem expects battery materials sales to increase on the ramp-up of cathode shipments to new customers.[3] Exide Energy Solutions commissioned a 6 GWh first phase in Bengaluru in September 2026 and plans supplies by the end of the fiscal year.[5] Grid storage adds a second buyer group, and with a forecast 9.1% CAGR for the battery energy storage system market, storage projects are pulling LFP cathode and graphite into stationary orders. FMI estimates USD 55.3 billion of extra battery materials sales over the decade, and the battery materials market in 2036 would then be about 1.8 times the 2026 size. Slower vehicle launches remain the main risk, as Umicore saw when selected customer platforms ramped up at a slower pace.[2]

Lithium Pricing, Cathode Contracts and Separator Supply

Lithium pricing sets the value of cathode sales. Albemarle grew Energy Storage net sales by USD 559 million to USD 1.3 billion in April to June 2026, and adjusted EBITDA for the segment rose 229% to USD 723 million on higher lithium pricing.[1] Albemarle also announced plans to place Kemerton Train 1 in Australia into care and maintenance. Cathode buyers on spot-linked contracts will see invoices move with these prices, and buyers on fixed contracts will face reopeners.

Separator and cathode supply is moving closer to North American and Japanese cell plants. Asahi Kasei opened a Hipore wet-process separator coating line at the Celgard site in Charlotte, North Carolina, with commercial production due in the second half of fiscal 2026, and Toyota Tsusho holds capacity rights.[6] Sumitomo Metal Mining and Toyota signed a joint development agreement in October 2025 for the mass production of cathode materials for all-solid-state batteries.[7] Local film and cathode capacity shortens freight and customs steps for cell makers in both regions.

Table 2: Price, Contract and Capacity Indicators for the Battery Materials Market (price, sales and capacity), 2025 to 2026

Indicator	Data Point	Relevance	Source
Albemarle average realized lithium price, Q2 2026	USD 19.53 per kg LCE; up 60.5%	Cathode input cost	[1]
Albemarle Energy Storage volume, Q2 2026	65 kT LCE; up 11%	Lithium supply to cathode plants	[1]
Umicore Battery Materials Solutions, H1 2026	Revenues and adjusted EBITDA up on take-or-pay accruals	Contract terms for cell makers	[2]
LG Chem Advanced Materials, Q2 2026	Revenue KRW 999 billion; operating profit KRW 20 billion	Cathode price recovery in South Korea	[3]
Asahi Kasei Charlotte coating line, August 2026	Hipore wet-process separator; output from H2 FY2026	Separator supply in North America	[6]
Exide Energy Solutions Bengaluru, September 2026	6 GWh Phase I commissioned	New cell demand in India	[5]
AESC Sunderland, December 2025	15.8 GWh initial capacity	Cell demand in the United Kingdom	[4]

Analyst Perspective

“I expect the decade’s strongest cathode contracts to come from LFP lines for grid storage and low-cost cars, as those buyers sign multi-year volumes and pass lithium costs through. Separator and cathode plants built beside the new cell factories in North America and India will be unlocking a fresh round of grid-scale cathode orders for suppliers, and I expect lead-acid materials to grow only at replacement pace.”

- Nikhil Kaitwade, Principal Consultant, Future Market Insights.

How is the battery materials market segmented?

The market is segmented into battery type, application, and region. Lithium-ion materials are expected to lead battery type with 62.9% share in 2026, and electric vehicles lead application with 38.5%.

By battery type: lithium-ion, lead-acid, and others.

By application: electric vehicles (EVs), automotive, portable devices, industrial, and others.

By region: cathode, anode, separator and electrolyte buyers in North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and Middle East and Africa.

Why do lithium-ion materials lead battery materials sales by battery type?

Lithium-ion materials are expected to lead battery type sales with 62.9% share in 2026, against an estimated 30.4% for lead-acid and 6.7% for other chemistries.

Table 3: Battery Type Share for the Battery Materials Market (percentage share), 2026

Battery Type	Estimated Share (2026)
Lithium-Ion	62.9%
Lead-Acid	30.4%
Others	6.7%
Total	100.0%

Table 4: Battery Type Leadership and Market Growth for the Battery Materials Market (segment and CAGR percentage), 2026 to 2036

Metric	Value
Global CAGR (2026 to 2036)	6.1%
Leading Segment	Lithium-Ion

Every traction pack, phone cell and storage rack now uses lithium-ion chemistry, and lithium-ion materials are expected to lead with a 62.9% share in 2026. One lithium-ion cell needs a cathode, a graphite anode, a separator film and an electrolyte, and the cathode carries lithium, nickel or iron phosphate priced by the tonne, so value per kWh runs high. Lead-acid, an estimated 30.4%, keeps starter batteries, forklifts and telecom backup, as lead plates cost little and recyclers return most of the lead to smelters. Forecasts for the lead acid battery market point to a 3.1% CAGR, which holds lead oxide and grid alloys well below the battery materials market pace. Other chemistries, about 6.7%, cover nickel-metal hydride for hybrids plus sodium-ion and flow batteries at early volume. Higher cathode prices returned LG Chem Advanced Materials to an operating profit in Q2 2026.[3] Cell makers choosing chemistry for a new line will pick lithium-ion, and lead-acid buyers will keep replacing like for like.

• Nickel-rich NMC, LFP and graphite anode powders, wet and dry separator films and carbonate electrolytes make up lithium-ion volume.
• Asahi Kasei held a grand opening on 20 August 2026 for a Hipore separator coating line in Charlotte, North Carolina.[6]

Why do electric vehicles lead battery materials sales by application?

Electric vehicles are projected to lead application sales with 38.5% share in 2026, ahead of automotive starter batteries at an estimated 21.4% and portable devices at about 17.6%.

Table 5: Application Share for the Battery Materials Market (percentage share), 2026

Application	Estimated Share (2026)
Electric Vehicles (EVs)	38.5%
Automotive	21.4%
Portable Devices	17.6%
Industrial	16.3%
Others	6.2%
Total	100.0%

A single car pack of 60 kWh holds as much cathode as thousands of phone cells, so electric vehicles are projected to lead with a 38.5% share in 2026. Automotive starter batteries, an estimated 21.4%, follow the conventional and hybrid fleet and use mostly lead-acid materials at a low cost per unit. Portable devices, about 17.6%, buy small volumes of high-voltage cobalt cathode for phones, laptops and tools, and unit growth there is flat. Industrial users, near 16.3%, cover forklifts, telecom towers, data center backup and grid storage, and grid storage brings the newest orders inside the group. Pack builders also buy foils and thermal materials, and a projected 10% CAGR for the battery pack foils market follows the rise in pack assembly. Others, 6.2%, include e-bikes, marine and medical devices. AESC builds cells at Sunderland for the third-generation Nissan Leaf.[4] Carmakers will keep the largest contracts, and storage integrators will be the buyers to watch.

• Battery electric cars, plug-in hybrids, e-buses and electric two-wheelers form the electric vehicle base.
• Exide Energy Solutions said in September 2026 that the Bengaluru plant will first make LFP cells and supply NMC cells to OEMs.[5]

What are the drivers, restraints, and opportunities in the battery materials market?

New cell factories and storage projects keep cathode and anode orders growing. Volatile lithium prices and slow vehicle launches put pressure on suppliers, and solid-state and local supply projects open new contracts.

• Driver: Each new cell factory qualifies a full set of cathode, anode, separator and electrolyte suppliers, so plant openings create multi-year buyers for battery materials.
• Restraint: Lithium and nickel prices swing sharply, and cathode makers carrying inventory bought at high prices lose margin when contract prices reset lower.
• Opportunity: Carmakers and governments want cathode and separator capacity close to cell plants, which favours suppliers ready to build in North America, Europe and India.

Cell Plant Openings Create Long-Term Buyers

Adoption of new materials happens at the cell plant gate, since a qualified supplier usually stays on a line for the full life of the plant. AESC started Sunderland production at 15.8 GWh of initial capacity, with recruitment toward about 1,000 staff.[4] Exide Energy Solutions commissioned 6 GWh near Bengaluru in September 2026.[5] Each commissioned line turns into steady monthly orders for cathode powder, anode graphite and separator rolls.

Lithium Price Swings Squeeze Cathode Margins

Key challenges for cathode producers start with metal prices that can halve or rise by half within a year. Albemarle reported a realized price of USD 19.53 per kg LCE for Q2 2026, against USD 12.17 a year earlier.[1] Umicore described a highly competitive market and is prioritising cost-base reduction and tight control of capital expenditures in Battery Materials Solutions.[2] FMI data indicate that suppliers without index-linked contracts carry the widest swings, and those producers will push buyers toward pass-through clauses.

Local and Solid-State Supply Opens New Contracts

Growth of the battery materials market will also come from supply built close to cell makers. Asahi Kasei is building a wet-process separator plant in Canada, which the company says is on schedule.[6] Toyota aims to launch battery electric vehicles with all-solid-state batteries in 2027 to 2028, using cathode material developed with Sumitomo Metal Mining.[7] Early solid-state cathode work feeds the cathode materials for solid state battery market, and the first suppliers qualified there will hold long contracts.

Which country CAGRs are profiled in the battery materials market?

Table 6: Country CAGR Comparison for the Battery Materials Market (CAGR percentage), 2026 to 2036

Country	CAGR (2026 to 2036)
India	6.9%
Canada	6.6%
South Korea	6.5%
United States	6.4%
Germany	6.2%
United Kingdom	5.8%
Japan	5.7%

How do country-level CAGRs compare in the battery materials market?

Battery makers in India are moving from pack assembly to cell making, and Exide commissioned 6 GWh in Bengaluru in September 2026.[5] Those plants give India a 6.9% CAGR, the quickest in the table. Canada, at 6.6%, gains from separator and cathode plants built for North American cell makers. On FMI's forecast, South Korea grows at 6.5%, as LG Chem and other cathode makers ship to new overseas customers. The United States and Germany are close together, on 6.4% and 6.2%, with new separator and cathode lines beside local cell plants. The United Kingdom, at 5.8%, relies on a few gigafactories, and Japan, at 5.7%, has the oldest cell base and grows slowest.

• First domestic cell gigafactories are adding demand across India.
• Canada attracts separator and cathode plants that feed North American cell makers.
• Cathode exporters such as LG Chem keep South Korea close to the top of the table.
• Local content rules pull separator and cathode lines into the United States.
• Schwarzheide gives Germany a fully automated cathode plant for European cell makers.
• Sunderland cell output carries most demand for battery materials in the United Kingdom.
• Japanese chemical groups are moving toward solid-state cathode and separator exports.

Full report country CAGRs cover: India first and Canada second, then South Korea, the United States and Germany, all faster than the 6.1% global pace; the United Kingdom and Japan below; every other standard country grouped by region.

Country-wise Analysis

India Battery Materials Market Outlook (2026 to 2036)

Demand for battery materials in India is moving from imported cells to local cell lines. Exide Energy Solutions commissioned the 6 GWh first phase of the Devanahalli plant in Bengaluru in September 2026, starting with LFP cells and planning NMC cells for OEMs.[5] Local cell making brings orders for cathode powder, graphite and separator film into the country, which supports a 6.9% CAGR for India through 2036, the fastest rate in the table.

Key takeaway: Local cell lines set the pace in India.

Canada Battery Materials Market Outlook (2026 to 2036)

Asahi Kasei is building a wet-process separator plant in Canada and says construction is on schedule, with the Charlotte coating line completing a regional supply base.[6] Separator and cathode plants in Canada serve car and cell makers on both sides of the border, and the projected rate for Canada is 6.6%, second in the table.

Key takeaway: Separator and cathode plants carry Canada above the global pace.

South Korea Battery Materials Market Outlook (2026 to 2036)

South Korean cathode makers sell to cell plants at home and abroad. LG Chem reported KRW 999 billion of Advanced Materials revenue in Q2 2026 and a return to operating profit on higher cathode prices and separator shipments.[3] The company expects battery materials sales to increase as cathode shipments to new customers ramp up. FMI estimates South Korea at 6.5%.

Key takeaway: Export cathode contracts keep South Korea ahead of the global rate.

United States Battery Materials Market Outlook (2026 to 2036)

Cell makers in the United States are buying more local separator and cathode material. Asahi Kasei held a grand opening on 20 August 2026 for a Hipore wet-process separator coating line at the Celgard site in Charlotte, North Carolina, with commercial output due in the second half of fiscal 2026.[6] Local supply of this kind supports a 6.4% CAGR for the United States, in FMI's estimate, and pack builders also buy thermal materials, with the battery thermal interface gels market on a projected 6.5% CAGR.

Key takeaway: Local film and cathode supply drives the United States.

Germany Battery Materials Market Outlook (2026 to 2036)

BASF renewed a long-term supply agreement in September 2025 for cathode active materials made at Schwarzheide, the only fully automated large-scale CAM plant in Europe.[8] Contracted output from that site serves European cell makers, and a likely 6.2% CAGR keeps Germany close to the battery materials market as a whole.

Key takeaway: Contracted cathode output from Schwarzheide anchors Germany.

United Kingdom Battery Materials Market Outlook (2026 to 2036)

Sunderland is the centre of cell making in the United Kingdom. AESC opened a gigafactory there with an initial 15.8 GWh of capacity to supply the new Nissan Leaf built next door, and expansion to as much as 35 GWh has been discussed without a commitment.[4] Imported cathode and anode material feeds that plant, and the United Kingdom is projected at 5.8%, below the global CAGR.

Key takeaway: One large gigafactory sets demand in the United Kingdom.

Japan Battery Materials Market Outlook (2026 to 2036)

Japanese material makers are preparing for the next battery format. Toyota and Sumitomo Metal Mining signed a joint development agreement on 8 October 2025 to mass-produce a highly durable cathode material for all-solid-state batteries, with BEV launches targeted for 2027 to 2028.[7] Domestic car battery volumes are mature, so FMI analysts expect Japan to grow at 5.7%, the slowest pace in the table, until solid-state lines scale.

Key takeaway: Solid-state cathode work is the growth lever for Japan.

Who are the notable companies in the battery materials market?

Umicore, Albemarle, LG Chem, BASF, Asahi Kasei, Sumitomo Metal Mining, Mitsubishi Chemical Group, Kureha, Resonac, Entek, Dow and DuPont are the profiled companies.

Top companies operating in the battery materials market include cathode makers, lithium producers and separator and chemical suppliers, and the companies FMI profiles cover each step. Energy Storage at Albemarle sold 65 kT LCE in Q2 2026.[1] Group revenues at Umicore rose 7.1% to EUR 1.9 billion in the first half of 2026.[2] Higher cathode prices returned LG Chem Advanced Materials to profit.[3] BASF, Asahi Kasei, Sumitomo Metal Mining, Mitsubishi Chemical Group, Kureha, Resonac, Entek, Dow and DuPont complete the group.

• Cathode and precursor makers: Umicore, LG Chem, BASF and Sumitomo Metal Mining.
• Lithium producers: Albemarle.
• Separator, electrolyte, binder and anode suppliers: Asahi Kasei, Mitsubishi Chemical Group, Kureha, Resonac, Entek, Dow and DuPont.

Competitive Benchmarking: Battery Materials Market

Table 7: Competitive Benchmarking for the Battery Materials Market (qualitative documentation ratings), 2026

Company	Cathode	Lithium Supply	Separator and Components	Recency
Umicore	High	Low	Low	High
Albemarle	Low	High	Low	High
LG Chem	High	Low	Medium	High
Asahi Kasei	Low	Low	High	High
BASF	High	Low	Low	Medium

Each rating reflects how much a company documented in releases from 2025 and 2026 for that column, and none implies a market share.

Key Developments in the Battery Materials Market

• On 28 September 2026, Energetica India reported that Exide Energy Solutions had commissioned the 6 GWh first phase of a Bengaluru lithium-ion cell plant.[5]
• On 26 August 2026, Asahi Kasei announced the opening of a Hipore wet-process separator coating line in Charlotte, North Carolina.[6]
• On 5 August 2026, Albemarle reported Energy Storage adjusted EBITDA of USD 723 million for Q2 2026.[1]
• On 31 July 2026, Umicore raised group guidance to slightly above EUR 1 billion of adjusted EBITDA for 2026.[2]
• On 31 July 2026, LG Chem said battery materials sales would increase with cathode shipments to new customers.[3]
• In December 2025, AESC began cell output at the 15.8 GWh Sunderland gigafactory.[4]
• On 8 October 2025, Sumitomo Metal Mining and Toyota agreed to co-develop mass production of all-solid-state battery cathode material.[7]
• On 2 September 2025, BASF renewed a long-term cathode active materials supply agreement for Schwarzheide.[8]

Key Players in the Battery Materials Market

Cathode and Precursor Makers

• Umicore
• LG Chem
• BASF
• Sumitomo Metal Mining

Lithium Producers

• Albemarle

Separator, Electrolyte, Binder and Anode Suppliers

• Asahi Kasei
• Mitsubishi Chemical Group
• Kureha
• Resonac
• Entek
• Dow
• DuPont

Battery Materials Market - Report Scope

Table 8: Report Scope for the Battery Materials Market (coverage fields and definitions), 2026 to 2036

Coverage field	Report scope
Market breakdown	Battery type; application; region
Quantitative units	USD billion
Market definition	Active and inactive materials used to make rechargeable cells, including cathode and anode materials, separators, electrolytes, binders, foils and lead oxides and grids, sold to cell and battery makers for vehicles, devices and industrial storage.
Regions covered	North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia and Pacific; Middle East and Africa
Countries covered	United States; Canada; Brazil; Mexico; Argentina; Chile; Germany; France; United Kingdom; Italy; Spain; Benelux; Nordics; Poland; Czech Republic; Romania; Hungary; China; Japan; South Korea; India; ASEAN; Australia and New Zealand; GCC Countries; South Africa; Türkiye; Israel
Key companies profiled	Umicore, Albemarle, LG Chem, BASF, Asahi Kasei, Sumitomo Metal Mining, Mitsubishi Chemical Group, Kureha, Resonac, Entek, Dow, DuPont
Forecast period	2026 to 2036

Battery Materials Market - Research Methodology

Table 9: Research Methodology for the Battery Materials Market (research methods and approach), 2026 edition

Method	Approach
Data Sources	Lithium producer and cathode maker results, separator and cell plant releases, carmaker announcements and trade press from May 2025 onward.
Desk Research	Desk research covers lithium pricing, cathode contracts, separator capacity, cell plant openings and solid-state development.
Market Sizing and Forecasting	Sizing starts from the 2026 base of USD 68.4 billion and the 6.1% CAGR for 2026 to 2036.
Data Validation	Prices, volumes and capacities were checked against the company release or article that first carried them.

Battery Materials Market by Segments

Battery Materials Market segmented by Battery Type:

• Lithium-Ion
• Lead-Acid
• Others

Battery Materials Market segmented by Application:

• Electric Vehicles (EVs)
• Automotive
• Portable Devices
• Industrial
• Others

Battery Materials Market by Region

• North America
  • United States
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• Western Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Benelux
  • Nordics
• Eastern Europe
  • Poland
  • Czech Republic
  • Romania
  • Hungary
• East Asia
  • China
  • Japan
  • South Korea
• South Asia and Pacific
  • India
  • ASEAN
  • Australia and New Zealand
• Middle East and Africa
  • GCC Countries
  • South Africa
  • Türkiye
  • Israel

Research Sources and Bibliography

• [1] Albemarle Corporation. (2026, August 5). Albemarle Reports Second Quarter 2026 Results. https://www.albemarle.com/us/en/news/albemarle-reports-second-quarter-2026-results
• [2] Umicore. (2026, July 31). Half Year Results 2026. https://www.umicore.com/en/media/newsroom/half-year-results-2026/
• [3] LG Chem. (2026, July 31). 2Q 2026 Earnings Release. https://www.lgchem.com/upload/file/ir-events/2Q_2026_earnings_release_ENG.pdf
• [4] Battery-Tech Network. (2025, December 17). AESC Opens New Sunderland Gigafactory to Supply Nissan Leaf. https://battery-tech.net/battery-markets-news/aesc-opens-new-sunderland-gigafactory-to-supply-nissan-leaf/
• [5] Energetica India. (2026, September 28). Exide Commissions 6 GWh Phase I Lithium-Ion Cell Manufacturing Facility. https://www.energetica-india.net/news/exide-commissions-6-gwh-phase-i-lithium-ion-cell-manufacturing-facility
• [6] Asahi Kasei. (2026, August 26). Asahi Kasei Unveils New Wet-Process Separator Coating Line in North Carolina. https://www.asahi-kasei.com/news/2026/e280826
• [7] Toyota Motor Corporation. (2025, October 8). Sumitomo Metal Mining and Toyota Collaborate on Mass Production of Cathode Materials for All-Solid-State Batteries. https://global.toyota/en/newsroom/corporate/43380876.html
• [8] BASF SE. (2025, September 2). BASF Battery Materials renews long-term cathode active materials supply agreement for Schwarzheide. https://www.basf.com/global/en/media/news-releases/2025/09/p-25-159

This bibliography is provided for reader reference. The full report contains the complete reference list and detailed citations.

This Report Answers

• How big is the battery materials market during 2026?
• What market size is projected by 2036?
• Which battery type holds notable share?
• Which application holds notable share?
• Which countries have notable growth?
• Which companies are notable in the market?