The electric vehicle market has been steadily growing in recent years as part of global efforts to reduce harmful emissions and increase the overall sustainability of road transport. Demand for individual vehicle parts including battery cells and motors has therefore ramped up as a result. A wide range of electric vehicle technologies are covered in IDTechEx's portfolio of Electric Vehicles Research Reports and Subscriptions, which includes market forecasts, key players, and the latest developments.
Li-ion battery opportunities for EVs
Li-ion batteries have long been the dominant chemistry choice for electric vehicle batteries, and this is expected to continue over the next ten years. The Li-ion market for EVs is expected to hit US$320 billion in 2036, growing from US$170 billion in 2026 at a compound annual growth rate of 6.5%. Despite slowed down electric vehicle uptake across the US and Europe, these figures show that the market will remain strong globally, with car sales in China having been faster than expected.
Key drivers for Li-ion batteries for the EV market are outlined in IDTechEx's report, "Li-ion Batteries and Battery Management Systems for Electric Vehicles 2026-2036: Technologies, Forecasts, and Players". With the EV market not only including cars, but vehicles such as trucks and light commercial vehicles too, demand will be spread across a number of transportation types that are looking to electrify. The increased focus on battery management systems (BMS), also outlined by IDTechEx, will help to drive the uptake of Li-ion batteries. Performance improvements, safer fast-charging, and extending battery life will be some of the main goals for BMS in EVs, the developments of which may create increased interest for fleet operators. Software and hardware developers in the BMS sector will also see more opportunities as EVs become more widespread and in need of improved management technologies.
Battery chemistries and materials
The potential for innovation across battery chemistries will also create scope for increased value and improved performance of EVs, with more players likely to enter the space. The many components within battery cells, from additives and electrolytes to cathode and anode materials, creates room for new developments to take off. Alongside this, localizing supply chains, seen in Europe and North America, may also act as incentives for switching up battery chemistries, with a focus on sourcing materials that allow for a decrease in reliance on global supply chains. Finding alternative material sources, particularly for critical materials like nickel, cobalt, lithium, and manganese, is also an opportunity that could expand global production by potentially reducing prices, with the development of new mines and different extraction methods. IDTechEx's report, "Materials for Electric Vehicle Battery Cells and Packs 2026-2036: Technologies, Markets, Forecasts", predicts the global material demand for EV batteries to hit 22.2 million tonnes by 2036, growing at a compound annual growth rate of 11.8% from 2025, with the overall market expected to hit US$179 billion.
Movements across motors
Necessary for creating motion, motors for electric vehicles differ from regular motors, as they use electrical energy from the battery rather than mechanical energy generated from fuel. The movement away from rare-earth (RE) use is an emerging trend amongst motor designs, according to IDTechEx's report, "Electric Motors for Electric Vehicles 2026-2036: Technologies, Materials, Markets, and Forecasts", to reduce reliance on non-renewable, costly, and hard to source materials. Permanent magnet (PM) motors are expected to maintain dominant market share over the next decade, though RE-free PM motors are likely to emerge, with Tesla expecting to release these into the market, alongside switched reluctance motors (SRMs), which are also designed to be rare-earth free and hold a small market share.
For more information, visit IDTechEx's portfolio of Electric Vehicles Research Reports and Subscriptions for the latest research across the EV sector, including forecasts, players, and key developments expected to shape the landscape over the coming decade.
