Global demand for materials used in electric vehicle batteries is expected to reach 22.2 million tonnes by 2036, according to Daniel Parr, Technology Analyst at IDTechEx, Manufacturing Today reported.
Parr said the rapid growth of electric vehicles is reshaping the global materials market as battery designs continue to evolve and new chemistries gain ground. Manufacturers are under pressure to cut costs while improving vehicle range and performance in an increasingly competitive industry.
As electric vehicle adoption gathers pace worldwide, demand for battery materials is rising across different segments. While battery electric passenger cars remain the largest market, growth is also accelerating in buses, trucks, light commercial vehicles and micro-EVs. Each of these segments requires different battery features, influencing the choice of materials based on energy capacity, power output, lifespan and cost.
China, Europe and North America are leading the global shift towards electric vehicles. China remains ahead, with more than half of new car sales in 2024 being electric. However, Europe and North America are expected to gradually close the gap.
Battery preferences vary by region. Lithium iron phosphate batteries are widely used in China because of their lower cost, while nickel-based batteries such as NMC and NCA are more common in Western markets. IDTechEx expects the use of lithium iron phosphate batteries to increase further in Europe and North America in the coming years.
Battery cells make up more than 70 percent of total battery pack material demand, making changes in chemistry particularly significant. The firm forecasts a broader move towards lithium iron phosphate batteries, mainly due to their lower cost per kilowatt-hour. At the same time, NMC batteries are expected to shift towards higher nickel content to improve performance and respond to rising cobalt prices.
On the anode side, silicon is beginning to gain ground and could reduce graphite’s dominance. Higher silicon content can increase energy capacity, especially in high-performance vehicles. However, raw material prices remain unstable. Recent spikes in lithium prices and fluctuations in cobalt prices in 2025 have highlighted ongoing supply and cost challenges for manufacturers.
Beyond battery cells, pack designs are also changing. Companies are working to cut weight and reduce material use to improve efficiency. Aluminium and steel remain standard materials for battery enclosures, but lighter polymer composites such as glass fibre-reinforced plastic and carbon fibre-reinforced plastic are attracting growing interest.
According to IDTechEx, material strategies will play a crucial role in determining the future performance, affordability and large-scale production of electric vehicles.
