The rapid ascent of electric vehicles has significantly expanded the global battery market, necessitating innovations in battery form factors to meet diverse automotive needs. The battery market continues to be dominated by prismatic types, which currently account for more than half of total sales. However, trends are shifting notably towards cylindrical solutions, particularly following Tesla’s pioneering adoption of its new 4680 battery model in 2022.
Prismatic batteries remain the market leader with half of a market share in 2023. Pouch batteries hold a steady appeal due to their lightweight and high energy density, making up around 1/3 of the market. Meanwhile, cylindrical types have risen to 20% market share, bolstered by high-profile adoptions by automotive giants such as BMW, Stellantis, and GM.
This evolving landscape indicates a dynamic competition among the three battery types, influenced by critical factors such as driving range, safety, and cost-effectiveness. While prismatic batteries are favored for their robustness and heat dissipation qualities, making them a preferred choice for manufacturers like BMW and Mercedes, pouch batteries are scrutinized for safety concerns despite their design flexibility.
Cylindrical batteries are gaining traction, driven by Tesla’s strategic collaborations with Panasonic to enhance size and reduce costs, underscoring a broader industry trend towards this form factor. As these dynamics unfold, by 2030, the market will see a relative decrease in prismatic batteries to around 38%, while cylindrical and pouch types will increase their shares to 25% and 35%, respectively.
This shifting preference underscores a strategic pivot in the electric vehicle sector from range prioritization to a balanced approach focusing on safety and vehicle distribution, prompting manufacturers to diversify their battery technology investments.
