IEA Analyzes Global Battery Market Size and Supply-Demand Balance

On February 13, the International Energy Agency (IEA) released a report entitled Strong Growth in the Global Battery Market Amid Rising Supply Risks. The report points out that as the global battery industry achieves leapfrog expansion, strategic risks in its highly concentrated supply chain have become increasingly prominent.

① The demand side is characterized by both explosive growth and cost reduction.In 2025, the global lithium battery market exceeded $150 billion in size, with installed capacity surging sixfold compared with 2020. Power batteries and energy storage systems accounted for more than 85% of total demand. Driven by industrial scale effects, the average battery price further dropped by 8% during the year.

② The supply side has exposed significant structural imbalances.

China, Japan and South Korea account for the vast majority of core production capacity. China’s domestic battery output is expected to make up more than 80% of the global total in 2025. Due to heavy reliance on imports and missing supply chain links, production costs in Europe and the United States carry a premium of more than 50% compared with China. In addition, increasingly strict export controls on key battery components in recent years have weakened the resilience of the global supply chain.

To rebuild industrial resilience, the report stresses that regions lacking first-mover advantages need to rely on long-term patient capital investment and underlying technological innovation, deepen strategic coordination with established manufacturers and resource-rich countries, and promote the construction of a diversified supply system.