IDTechEx’s newest report ‘Materials for Electric Vehicle Battery Cells and Packs 2026-2036: Technologies, Markets, Forecasts’
As EV sales increase, demand for EV battery materials grows too. However, as pack and cell designs evolve, material demand trends emerge across many components. Minimising cost and maximising range by improving energy density are the primary considerations for battery pack developers, but the methods for achieving these targets will shift as new cell chemistries and material innovations come online
Opportunities can be found across the materials space for EV battery packs and cells. The focus is primarily on cathode and anode materials, but light-weighting of pack enclosure materials is also gaining interest. In IDTechEx’s new report, ‘Materials for Electric Vehicle Battery Cells and Packs 2026-2036: Technologies, Markets, Forecasts’, these trends are set out in detail, with overall material demand expected to reach 22.2 million tonnes by 2036.
Overview of application markets
The EV market is dominated by battery-electric cars (BEVs). However, there is a significant opportunity in other EV sectors, including buses, trucks, light commercial vehicles, and micro-EVs. Differentiation of cell and pack materials is expected across vehicle sectors, depending on specific application needs such as energy density, power density, and cost.
The EV market is dominated by three regional segments: China, Europe, and North America. China is currently the largest of the three, with over 50% of new car sales in 2024 being electric. However, European and North American markets are expected to catch up over the forecast period. Chemistry trends could vary from region to region. For example, LFP is dominant in China due to low costs, while NMC and MCA are more common in Europe and North America due to higher performance. It is expected, however, that LFP will become more common in Europe and North America in the short- and medium-term.
Battery cell materials
Cell materials account for over 70% of the material demand for EV battery packs. Cell material demand is dependent on chemistry trends, especially on the anode and cathode sides. IDTechEx predicts a general shift towards LFP over NMC over the forecast period, driven by lower costs per kWh, while the NMC share will shift towards higher nickel content, due to higher performance and energy density and rising cobalt prices.
On the anode side, the rise in silicon will correspond to slower graphite growth. This rise is linked to the use of higher-silicon content in silicon additive anodes and the commercialisation of mid- and high-silicon anodes for high-performance applications towards the end of the forecast period.
Raw materials prices are often volatile. For example, lithium price inflation in 2022 and 2023 led to higher battery prices and resulted from a short-term undersupply of lithium relative to EV demand. Cobalt prices are also volatile and have spiked significantly in 2025, potentially accelerating the adoption of higher-nickel NMC.
Pack materials
On the battery pack side, a general trend is towards reducing material demand to increase pack energy density. This includes potential lightweighting of components such as the battery pack enclosure. Aluminium and steel are the incumbent technologies for battery pack enclosures, but composite materials such as glass-fibre-reinforced polymer (GFRP) and carbon-fibre-reinforced polymer (CFRP) are increasingly adopted due to their light weight.
In the new market report from IDTechEx, the EV battery material demand analysis includes:
Market forecasts and analysis
- Granular 10-year forecast of material demand from EV battery cells and packs by material and application. A forecast of the cathode market share by GWh through 2036 is also included.
- Analysis of market shares for EV battery cell suppliers across the three primary regions.
- Discussions of regulations across the three primary regions and their role in EV adoption and materials trends.
Technology trends
- Qualitative and quantitative predictions concerning changes in material trends for battery cell and pack materials, including anodes, cathodes, enclosures, fire protection materials, thermal management materials and more.
- Benchmarking of cell chemistries is also included.
- Evaluation of cell-to-pack ratios and their effect on energy density, and the potential for cell-to-body and cell-to-chassis.
- Evaluation of light-weighting potential for battery pack enclosures, in the form of polymer composite materials.
Cost analysis
- Estimates of LFP, NMC 811, and NMC 532 material costs in 2025, and predictions of future cell costs through 2036.
- Discussion of the effects of price volatility for critical battery materials such as cobalt, lithium, and nickel is also included, as are global material extraction volumes for these three materials up to 2036.
