Global Lithium-ion Battery Demand Surges 32% To 1.3 TWh In 2024: SNE Research

Globally, the lithium-ion battery (LIB) market is rapidly expanding, with demand reaching 1.3 TWh in 2024, up 32% from the previous year, according to a report by SNE Research. The surge, a direct consequence of falling prices for Lithium based storage might yet face a challenge in 2026, as prices have started a climb back. 

By application, demand stood at 115 GWh for IT devices, 898 GWh for electric vehicles (EVs), and 307 GWh for energy storage systems (ESS). Based on its segment-wise analysis, SNE Research said global LIB demand reached 1,320 GWh in 2024, marking a 31.9% year-on-year rise.

While the LIB market initially grew around demand for IT devices, the report noted a shift towards the rapidly expanding EV and ESS segments. Mid- and large-sized LIBs now account for a growing share of the total market. The study categorised LIB demand into three major segments: ESS, EVs, and small-sized batteries used in laptops, smartphones, and similar devices.

IT Segment Driven By Smartphone Battery Growth

LIB demand in the IT segment was largely driven by rising demand for smartphone batteries. The study stated: "As foldable smartphones are becoming popular and more lithium-ion batteries with silicon-anode (Si-anode) materials are used, the energy capacity in smartphones has significantly increased. Foldable smartphones manufactured in China feature LIBs with high energy density."

China leads EV battery growth

Comparing global EV battery trends with China, the report said: "The lithium-ion battery market for electric vehicles saw significant growth in China, which continues to drive the overall market expansion. In 2024, demand for LIBs for EVs in China rose by approximately 40% from the previous year."

Power Grid Applications DominateESS Market 

On ESS batteries, SNE Research noted: "LIBs for the ESS market are primarily used in power grid applications. These accounted for 72% of ESS LIB demand in 2023, rising to 80% in 2024. The share is expected to exceed 83% in the coming years."

SNE Research forecasts that LIB demand in small-sized IT devices will reach 200 GWh, with various consumer electronics contributing to this growth. Overall demand for LIBs across all segments is projected to hit 5.6 TWh by 2035.