The global market for materials used in electric vehicle (EV) lithium-ion battery cells is projected to reach USD 154 billion by 2036, according to a new report by IDTechEx. The study highlights the growing demand for key battery materials as EV adoption accelerates worldwide.
The report, titled “Materials for Electric Vehicle Battery Cells and Packs 2026–2036”, notes that lithium-ion batteries comprise a range of chemistries, each with distinct material requirements. Among these, nickel-based chemistries such as NMC (nickel manganese cobalt) and NCA, along with lithium iron phosphate (LFP), dominate the EV segment.
LFP batteries, widely used in China, are gaining share in North America and Europe due to their lower cost per kWh, despite relatively lower energy density. In contrast, nickel-based chemistries continue to be used in premium vehicles due to higher energy density, though at a higher cost. The report also points to a shift toward higher nickel content in NMC cells, such as NMC 811, to improve performance and reduce cobalt dependency.
Battery cell materials include cathode elements such as nickel, manganese, cobalt, iron and phosphate, and anode materials like graphite and silicon. Demand for these materials is expected to rise significantly, with total material consumption projected to exceed 17.9 million tonnes by 2036.
The report highlights ongoing volatility in key raw material prices, particularly lithium, nickel and cobalt. Lithium prices, for instance, saw a sharp rise in 2022–23 due to supply constraints and demand growth, and have continued to fluctuate amid mine shutdowns and rising consumption. Cobalt prices have also experienced volatility, including spikes linked to supply disruptions in the Democratic Republic of Congo.
In 2025, IDTechEx estimates raw material costs at $34 per kWh for LFP cells and $39 per kWh for NMC 811 cells, indicating a narrowing cost gap between the two chemistries. These estimates exclude processing and manufacturing costs.
Looking ahead, the report identifies several emerging technologies that could reshape material demand. These include increased use of silicon in anodes, development of solid-state batteries using alternative electrolytes, and new cathode chemistries such as LMFP and LNMO aimed at reducing reliance on cobalt. Other technologies, such as lithium metal and lithium-sulfur batteries, are also under development but are expected to have limited market share in EV applications in the near term.
Overall, the study underscores the growing scale and complexity of the EV battery materials market, driven by evolving chemistries, cost pressures and the global transition to electric mobility.