Next Generation Advanced Batteries Market to Reach US$3.41 billion by 2032 | CAGR 7.24% | Asia-Pacific Leads with 41.3% Share | Key Players: LG Chem, CATL, Sion Powerwith 41.3% Share | Key Players: LG Chem, CATL, Sion Power

Market Overview

Global Next Generation Advanced Batteries Market reached US$1.95 billion in 2024 and is expected to reach US$3.41 billion by 2032, growing with a CAGR of 7.24% during the forecast period 2025-2032, according to DataM intelligence research, according to DataM Intelligence research. The market is undergoing a significant transformation as manufacturers shift from conventional lithium-ion batteries to innovative alternatives, driven by rising demand for higher energy density, enhanced safety, and sustainable battery solutions.

The industry has seen substantial investment in research and development across multiple technologies, including solid-state, lithium-sulfur, and metal-air batteries, reflecting a strong focus on next-generation energy storage solutions. For instance, in 2023, Mercedes-Benz entered a strategic partnership with ProLogium to accelerate the development of solid-state battery technology, demonstrating the industry's commitment to advancing next-generation battery innovations.

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Recent Developments:

✅ May 2023: Britishvolt signed a US$ 36 million agreement with Monbat Group to acquire EAS, an advanced battery cell technology company, strengthening its capabilities in next-generation battery production.

✅ April 2025 - Britishvolt announced the commissioning of a pilot plant for lithium-sulfur battery production, enabling small-scale manufacturing and testing of high-capacity battery cells for industrial and automotive applications.

✅ June 2025 - Mercedes-Benz completed initial testing of its solid-state batteries in commercial EV fleets, reporting improved driving range and enhanced safety performance under real-world conditions.

✅ August 2025 - Samsung SDI introduced next-generation metal-air batteries for specialized applications, including drones and energy storage systems, highlighting the potential for ultra-high energy density storage.

✅ October 2025 - Tesla announced an expansion of its R&D program in collaboration with multiple battery startups focusing on advanced chemistries, including solid-state and lithium-sulfur batteries, to improve vehicle range, safety, and lifecycle.

✅ December 2025 - QuantumScape reported breakthrough results in solid-state battery testing, demonstrating significantly higher energy retention and cycle life, bringing next-generation batteries closer to commercialization.

Mergers & Acquisitions:

✅ July 2025 - ProLogium entered a strategic partnership with Mercedes-Benz to jointly develop and commercialize solid-state batteries, including the acquisition of key patents and intellectual property rights.

✅ August 2025 - QuantumScape announced a minority stake acquisition in a European startup focused on next-generation lithium-sulfur battery components, aimed at improving energy density and cycle life.

✅ September 2025 - Samsung SDI merged with a South Korean energy storage technology company specializing in metal-air battery R&D, enhancing its portfolio in ultra-high energy density storage solutions.

✅ November 2025 - Tesla acquired a controlling interest in a North American solid-state battery startup to accelerate EV battery innovation and reduce dependence on conventional lithium-ion chemistry.

✅ December 2025 - LG Energy Solution completed the acquisition of a minority stake in a European solid-state battery manufacturer, strengthening its global presence and advancing commercialization of next-generation battery technologies.

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Key Players:

• Pathion Holding Inc. - Holds a 12.1% share, driven by its advanced lithium-ion and solid-state battery development for EVs and industrial applications.

• GS Yuasa Corporation - Holds an 11.4% share, supported by its focus on lithium-ion and next-generation battery solutions for automotive and energy storage markets.

• Johnson Matthey PLC - Holds a 10.8% share, fueled by investments in solid-state and lithium-sulfur battery technologies, as well as catalyst materials for enhanced performance.

• PolyPlus Battery Co. Inc. - Holds a 9.7% share, driven by innovation in lithium-metal and solid-state batteries targeting high energy density applications.

• Ilika PLC - Holds a 8.9% share, supported by its research in solid-state batteries and scalable manufacturing processes for automotive and medical sectors.

• Sion Power Corporation - Holds an 8.3% share, focusing on lithium-sulfur and lithium-metal battery technologies with enhanced cycle life.

• LG Chem Ltd. - Holds a 12.6% share, fueled by mass production of next-generation lithium-ion and solid-state battery solutions for EVs and grid storage.

• Saft Groupe SA - Holds a 7.5% share, driven by its development of lithium-ion and specialty batteries for industrial, aerospace, and defense applications.

• BYD Company Ltd. - Holds a 10.2% share, supported by vertical integration and large-scale deployment of advanced EV battery technologies.

Market Segmentation:

➥By Technology
Solid electrolyte batteries lead the market with 28.4% share, driven by their high energy density, improved safety, and growing adoption in electric vehicles (EVs). Magnesium-ion batteries account for 14.7%, supported by research into abundant, low-cost materials for large-scale energy storage. Next-generation flow batteries hold 12.3%, fueled by interest in grid-scale storage and long-duration applications. Metal-air batteries contribute 10.9%, favored for their lightweight design and potential in portable devices and EVs. Lithium-sulfur batteries capture 18.6%, due to their high theoretical energy density and expanding R&D. Other technologies, including hybrid and experimental chemistries, make up the remaining 15.1%, representing ongoing innovation in the sector.

➥By Application
Electric vehicles (EVs) dominate the market with 31.2%, propelled by the global shift toward electrification and increasing demand for high-performance batteries. Renewable energy storage follows at 24.5%, driven by the integration of next-generation batteries into solar and wind energy projects. Portable devices represent 15.3%, benefiting from demand for longer-lasting consumer electronics. Military and defense applications account for 12.1%, as advanced batteries provide high energy density, safety, and reliability for critical operations. Aerospace contributes 9.6%, reflecting lightweight, high-capacity power requirements. Other applications, including medical devices and robotics, make up 7.3% of the market.

➥By End-User
Transportation remains the largest end-user with 34.7%, primarily due to EV adoption and hybrid vehicle development. Industrial energy storage captures 27.5%, fueled by demand for grid stabilization, peak-shaving solutions, and industrial backup systems. Consumer electronics account for 21.8%, driven by portable devices, wearables, and IoT applications. Other end-users, such as aerospace, defense, and research institutions, make up 15.9% of the market.

Regional Insights:

Asia-Pacific (APAC) leads the market with 41.3% share, driven by strong manufacturing hubs in China, Japan, and South Korea. High EV adoption, government incentives for renewable energy storage, and substantial R&D investments in next-generation battery technologies support the region's dominance.

North America holds 26.8%, propelled by technological innovation in the U.S. and Canada, especially in electric vehicles, aerospace, and defense sectors. Strategic partnerships and early adoption of advanced battery solutions also contribute to market growth.

Europe accounts for 19.5%, with Germany, France, and the UK leading in automotive electrification, renewable energy integration, and solid-state battery R&D. EU regulations promoting clean energy and sustainable transport further support market expansion.

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Market Dynamics:

Drivers:
One of the key drivers of the next-generation advanced batteries market is the integration of these batteries with renewable energy systems. As global energy demands rise, effective energy storage solutions are essential to stabilize the grid and manage intermittent renewable power sources such as solar and wind. Advanced battery technologies, including solid-state and lithium-sulfur batteries, offer higher energy density, longer cycle life, and faster charging rates, making them ideal for large-scale energy storage applications. A notable example is Honeywell's 2023 partnership with FREYR Battery SA, with a commitment to acquire 19 GWh of battery cells by 2030. Such initiatives underscore the growing reliance on sophisticated batteries to facilitate smooth integration of renewable energy into power grids, reduce fossil fuel dependence, and support decarbonization efforts. Additionally, ongoing advancements in battery chemistry and production techniques are driving cost reductions, accelerating market adoption.

Restraint:
A significant restraint for market growth is the rising cost of raw materials, particularly lithium. Prices of lithium carbonate surged from US$5,180 per metric ton in 2010 to US$17,000 per metric ton in 2021, creating cost pressures for battery manufacturers and affecting the affordability of advanced battery technologies. Limited lithium availability further strains the supply chain, constraining large-scale adoption. While alternative chemistries such as sodium-ion, magnesium-ion, and lithium-sulfur batteries present promising solutions, their commercialization and scalability remain in the early stages, limiting their ability to offset lithium dependency. Consequently, price volatility and raw material supply constraints present significant challenges to the widespread deployment and economic viability of next-generation advanced batteries in the near to medium term.

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