Battery-Industry Trends to Watch in 2025

TThe battery industry moves at a fast pace and in the torrent of news and tumult of unfolding events, it can be hard to make sense of it all. It’s a sprawling story with a lot of important narrative threads.

Why it matters

The battery industry has become a cornerstone of the global economy, underpinning the rapid growth of electric vehicles (EVs), renewable energy storage, and portable electronics. The global demand for batteries is expected to surge, quadrupling to 4,100 gigawatt-hours (GWh) by 2030, driven by surging EV adoption and ambitious decarbonization targets. The sector’s influence extends beyond commerce, playing a critical role in climate policies and energy security strategies worldwide.

An industry in flux

In recent years, the industry has undergone significant technological and structural shifts. Key developments include the rise of lithium iron phosphate (LFP) batteries, offering cost advantages and enhanced safety for EVs and grid storage, and the emergence of sodium-ion technology as a potential alternative to lithium-ion chemistry. Solid-state batteries have also garnered attention, with manufacturers racing to commercialize higher-energy-density designs. Meanwhile, recycling has gained momentum as supply chain challenges highlight the need for sustainable material sourcing, sparking innovations in recovering lithium, cobalt, and nickel from end-of-life batteries.

The battery industry’s evolution has also reshaped global power dynamics. Countries like China have established leadership in raw material processing and cell manufacturing, while the U.S. and EU have implemented policies to localize supply chains and reduce reliance on imports. The 2022 Inflation Reduction Act and subsequent government funding programs have catalyzed domestic production and partnerships, spurring an unprecedented wave of investment in gigafactories across North America. These shifts highlight the sector’s critical role in advancing clean energy transitions and its ability to redefine industries worldwide.

8 storylines worth following into 2025

Battery-industry news breaks gobally literally multiple times a day, every day. There is a lot to follow and try to evaluate. So, at the cusp of a new year, we would like to step back from this sprawling story and bring to your attention some of its most important narrative threads. Following are eight battery industry trends to watch in 2025.