The battery market is growing rapidly, but so are the risks of addiction
The global battery market continues to grow dynamically. According to the International Energy Agency (IEA), its value will exceed $150 billion in 2025, representing a more than 20 percent year-on-year increase. Batteries have become a key technology not only for the development of electromobility, but also for the energy transformation, data centers and modern industry.
Batteries are a strategic technology
However, rapid growth also brings risks. Battery production is highly concentrated, with more than 80% of global production coming from China. Europe and the US are building their own capacities, but they are still largely dependent on importing components and processing raw materials from Asia. This concentration increases the vulnerability of supply chains to geopolitical tensions, trade disputes or production outages.
Batteries are a strategic technology for the decarbonization of both transport and energy. If their development is to be sustainable in the long term, countries will have to diversify production, strengthen domestic capacities and ensure stable supplies of critical raw materials. Otherwise, rapidly growing demand may hit limits that will threaten the pace of the global energy transformation.
Price decline
Demand for lithium-ion batteries is currently approximately six times higher than in 2020. More than 70% of consumption still falls on electric vehicles. The second fastest growing segment is large-scale battery storage (BESS), which plays a crucial role in the integration of renewable energy sources. Their share of total demand exceeds 15% and continues to grow.
However, a positive trend is the decline in prices. In 2025, global battery prices decreased by an average of 8%, with some technologies, such as lithium iron phosphate (LFP) batteries, experiencing even more significant price reductions. Technological progress and increasing competition are thus supporting the wider use of batteries in both transport and energy. cies are thus supporting the wider use of batteries in both transport and energy.