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October 13, 2025|Information & Technology

What Are the Top 16 Traction Battery Companies in 2025? | Global Growth Insights

The global traction battery market has emerged as one of the fastest-growing segments within the energy storage and electric mobility industry, playing a critical role in the global shift toward sustainable transportation and industrial electrification. According to Global Growth Insights, the market was valued at USD 57.9 billion in 2023 and is expected to reach USD 69.5 billion by 2024, ultimately soaring to USD 302.01 billion by 2032, reflecting an impressive CAGR of 20.14% during the forecast period (2024–2032). This remarkable expansion highlights the accelerating adoption of electric vehicles (EVs), hybrid machinery, and renewable energy-driven storage systems across multiple industries.

A traction battery, also known as a drive battery or electric propulsion battery, is a high-capacity rechargeable energy source designed to power the electric traction motors of vehicles such as electric cars, forklifts, buses, trams, and industrial trucks. These batteries are distinct from conventional automotive batteries as they are engineered to deliver sustained high power output, deep discharge cycles, and long operational lifespans under demanding load conditions. The most widely used technologies in the traction battery space include lithium-ion, lead-acid, and increasingly, solid-state and lithium-iron phosphate (LFP) chemistries, which offer enhanced safety, higher energy density, and improved efficiency.

The growing transition toward electrified transportation, supported by government initiatives such as the U.S. Inflation Reduction Act, the EU Green Deal, and China’s New Energy Vehicle (NEV) policy, has significantly boosted demand for traction batteries. In addition to passenger EVs, sectors such as logistics, railways, construction equipment, and material handling are rapidly electrifying their fleets to reduce carbon emissions and operational costs.

Leading global manufacturers, including LG Chem, Panasonic Corporation, BYD Company, Samsung SDI, and GS Yuasa, are heavily investing in battery gigafactories, advanced chemistry development, and recycling infrastructure to secure supply chain resilience and long-term sustainability.

USA Growing Traction Battery Market

The United States traction battery market is witnessing exceptional growth, driven by the rapid adoption of electric vehicles (EVs), expansion of renewable energy storage infrastructure, and strong policy support from the federal government. In 2024, the U.S. traction battery market was valued at approximately USD 18.6 billion, and it is projected to reach USD 22.8 billion by 2025, accounting for nearly 33% of the global market share. With major automakers transitioning toward full electrification, the U.S. is positioning itself as one of the world’s most dynamic traction battery hubs.

Several factors contribute to this growth trajectory. The Inflation Reduction Act (IRA) of 2022 has played a transformative role by incentivizing domestic production of lithium-ion batteries and offering substantial tax credits for EV buyers and battery manufacturers. As a result, the number of planned battery gigafactories in the U.S. exceeded 30 projects by 2025, led by companies such as Panasonic, LG Chem, BYD, and Tesla, aiming to localize supply chains and reduce dependency on Asian imports.

The EV segment remains the largest consumer of traction batteries in the U.S., accounting for over 65% of total demand in 2025, supported by surging sales of electric passenger cars and commercial fleets. In parallel, the industrial traction battery market—covering forklifts, material-handling vehicles, and mining equipment—represents approximately 18% of domestic demand, driven by warehouse automation and green logistics initiatives.

The country’s renewable energy storage segment also contributes significantly, using traction-grade lithium-ion systems to stabilize grid performance. Furthermore, the U.S. Department of Energy (DOE) has allocated over USD 3.5 billion in funding for battery material processing and recycling facilities, strengthening circular economy capabilities.

With growing consumer acceptance, technological innovation, and national-level sustainability goals, the U.S. traction battery market is expected to expand robustly over the coming decade. By 2032, the United States is forecasted to maintain a CAGR of around 19–20%, securing its position as a global leader in the next-generation electric mobility and energy storage revolution.

How Big Is the Traction Battery Industry in 2025?

The global traction battery industry in 2025 is projected to reach a valuation of approximately USD 69.5 billion, reflecting a robust expansion from USD 57.9 billion in 2023. The market is anticipated to grow at a CAGR of 20.14% during the forecast period (2024–2032), ultimately soaring to USD 302.01 billion by 2032, according to Global Growth Insights. This remarkable surge is fueled by the accelerating electrification of transportation, industrial automation, and renewable energy integration across key global markets.

Asia Pacific remains the epicenter of traction battery production and consumption, accounting for around 48% of the global market share in 2025, primarily driven by China, Japan, and South Korea. These nations lead in manufacturing capacity and technological innovation, supported by large-scale investments in lithium-ion and emerging solid-state battery technologies. Meanwhile, Europe holds approximately 22% of the market share, propelled by strong EV policies, such as the European Union’s “Fit for 55” initiative, which mandates accelerated carbon reduction and electrification across the transport sector.

The North American market contributes about 25% of the global share, led by the United States’ rapid expansion of EV infrastructure and battery gigafactory development under the Inflation Reduction Act (IRA). The remaining 5% is attributed to emerging regions in Latin America, the Middle East, and Africa, where traction batteries are increasingly used for renewable energy storage and electric public transport.

By application, electric vehicles (EVs) dominate the traction battery industry, holding nearly 72% of global demand in 2025, while industrial vehicles and energy storage systems together account for the remaining 28%.

The year 2025 marks a pivotal moment in the evolution of the traction battery market — transitioning from niche energy storage to a mainstream global powerhouse, driving sustainability, innovation, and industrial transformation across continents.

Global Distribution of Traction Battery Manufacturers by Country in 2025

Rank Country Global Market Share (%) Key Companies Highlights (2025)
1 China 36% BYD Company, CATL, LG Chem (China Ops) World’s largest traction battery producer; strong EV demand and domestic supply chain integration.
2 Japan 17% Panasonic Corporation, GS Yuasa, Hitachi Chemical Advanced lithium-ion and solid-state R&D; strong partnerships with Toyota, Honda, and Nissan.
3 South Korea 14% Samsung SDI Co. Ltd., LG Chem, SK On Major supplier for global EVs; significant exports to North America and Europe.
4 United States 11% East Penn Manufacturing, Enersys, Johnson Controls Expanding gigafactory network under the Inflation Reduction Act; focus on domestic lithium sourcing.
5 Germany 7% Hoppecke Batteries, Banner Batterien GmbH Strong industrial traction battery manufacturing and partnerships with European automakers.
6 India 5% Amara Raja Batteries, Exide Industries Rapidly growing EV battery ecosystem supported by “Make in India” and FAME II policies.
7 Greece 3% Systems Sunlight S.A. European leader in industrial traction and energy storage solutions; expanding export capacity.
8 Turkey 2% Mutlu Akü Developing regional hub for automotive and forklift battery manufacturing.
9 United Kingdom 2% Enersys (UK), Britishvolt (emerging) Investing in local gigafactories and EV battery recycling initiatives.
10 Rest of the World 3% Emerging manufacturers in Brazil, Canada, and France Expanding industrial traction battery production for logistics and rail sectors.
Total 100% Global Traction Battery Manufacturing Distribution (2025)

Regional Traction Battery Market Share & Opportunities (2025)

The global traction battery market in 2025 reflects a highly regionalized growth pattern shaped by evolving industrial priorities, electric mobility targets, and manufacturing capacities. The year marks a major transition where Asia Pacific, North America, and Europe together account for more than 90% of the global traction battery market, each contributing unique growth dynamics and innovation ecosystems.

Asia Pacific – 48% Market Share

Asia Pacific dominates the global traction battery market, capturing approximately 48% of total market share in 2025. This leadership is primarily driven by China, Japan, and South Korea, which collectively account for over 75% of Asia Pacific’s traction battery production capacity.

North America – 25% Market Share

The North American traction battery market holds approximately 25% of global share in 2025, anchored by the United States, which contributes over 80% of the region’s production. The U.S. market is bolstered by federal support through the Inflation Reduction Act (IRA), aiming to strengthen domestic manufacturing and reduce reliance on imports.

Europe – 22% Market Share

Europe captures around 22% of the global traction battery market in 2025, led by Germany, France, and the Nordic countries. The region’s focus on carbon neutrality, EV mandates, and renewable energy storage continues to drive demand. The European Green Deal and Fit for 55 initiatives are further boosting electrification across both automotive and industrial sectors.

Rest of the World (Latin America, Middle East, Africa) – 5% Market Share

Although smaller in scale, the Rest of the World holds about 5% of global traction battery share in 2025, with emerging production bases in Brazil, UAE, and South Africa. These regions are gradually entering the electric mobility value chain through government incentives and public-private partnerships.
Opportunities: High potential lies in electric buses, mining vehicles, and renewable off-grid storage systems, particularly in countries investing in sustainable infrastructure. Multinational firms are targeting these regions for assembly plants and aftersales battery support networks, fostering localized employment and technology transfer.

Global Growth Insights unveils the top List Global Traction Battery Companies:

Company Headquarters CAGR (2025–2032) Revenue (2024) Geographic Presence Key Highlights & Latest Updates (2025)
East Penn Manufacturing Lyon Station, Pennsylvania, USA 7.9% USD 3.6 Billion North America, Europe Expanded production of industrial traction and EV lead-acid batteries; invested in new lithium-ion facility in the U.S. Midwest.
Johnson Controls Milwaukee, Wisconsin, USA 8.2% USD 25.3 Billion Global (Americas, Europe, Asia Pacific) Focused on next-gen energy storage systems for EVs; launched battery management software to enhance efficiency and lifecycle tracking.
Samsung SDI Co. Ltd. Yongin, South Korea 12.6% USD 15.2 Billion Global (Asia, North America, Europe) Opened new gigafactory in Indiana (U.S.) with Stellantis; introduced high-density prismatic lithium-ion traction batteries.
Enersys Reading, Pennsylvania, USA 9.5% USD 3.4 Billion North America, Europe, Asia Unveiled new TPPL (Thin Plate Pure Lead) traction batteries; expanding R&D investment in lithium-based hybrid systems.
Systems Sunlight S.A. Athens, Greece 10.1% USD 930 Million Europe, Middle East, Africa Launched lithium-ion product line for forklifts and material handling; expanding battery recycling capacity in Northern Greece.
LG Chem Seoul, South Korea 13.8% USD 42.7 Billion Global (Asia, North America, Europe) Invested USD 2 billion in U.S. battery plant expansion; developing high-energy density NCMA lithium-ion batteries for EV traction systems.
BYD Company Shenzhen, China 18.5% USD 71.4 Billion Global (China, Europe, Latin America) Leading global EV and battery producer; launched “Blade Battery” technology expansion in Europe and Latin America; increased energy density by 12% YoY.
Haze Batteries Shenzhen, China 8.9% USD 410 Million Asia, Middle East, Africa Focused on deep-cycle gel and VRLA batteries for industrial traction and renewable applications; expanding export partnerships in Africa.
Hoppecke Batteries Brilon, Germany 9.1% USD 620 Million Europe, North America Introduced lithium-ion modular traction systems for automated warehouse vehicles; enhanced sustainability standards for EU manufacturing plants.
Hitachi Chemical Co. Ltd. Tokyo, Japan 10.4% USD 5.9 Billion Asia, North America, Europe Expanded lithium-titanate (LTO) battery production; partnered with Honda to advance solid-state EV battery development.
Exide Technologies Milton, Georgia, USA 7.7% USD 3.1 Billion North America, Europe, Asia Restructured its North American business; focused on smart energy storage solutions for forklifts and industrial EVs.
Banner Batterien GmbH Leonding, Austria 6.8% USD 410 Million Europe Expanded traction battery distribution network across Central Europe; investing in sustainable battery material recycling.
Amara Raja Batteries Tirupati, India 11.2% USD 1.7 Billion Asia, Middle East, Africa Launched India’s largest lithium-ion cell manufacturing facility; collaborated with Indian automakers for EV battery localization.
GS Yuasa Kyoto, Japan 9.8% USD 4.6 Billion Global (Asia, Europe, North America) Developing lithium-ion and nickel-metal hydride batteries for hybrid vehicles; established joint venture with Honda for solid-state battery R&D.
Mutlu Akü Istanbul, Turkey 7.2% USD 540 Million Europe, Middle East, North Africa Expanding automotive and forklift battery manufacturing; focusing on export-driven growth in the Middle East and Eastern Europe.
Panasonic Corporation Osaka, Japan 14.5% USD 76.3 Billion Global (Asia, North America, Europe) Expanded Nevada gigafactory operations with Tesla; announced mass production of 4680 cylindrical traction cells with 15% higher energy density.

High-End & Specialty Traction Battery Manufacturers (2025)

The high-end and specialty traction battery segment represents the cutting edge of the global energy storage industry, focusing on premium performance, advanced chemistries, and specialized applications such as electric buses, rail transport, mining vehicles, material handling, defense, and heavy industrial machinery. By 2025, this segment accounts for around 19% of the total global traction battery market, valued at approximately USD 13.2 billion, and is forecasted to expand at a CAGR of 21.6% (2025–2032).

These manufacturers distinguish themselves through technological innovation, long cycle life, rapid charging capabilities, and enhanced thermal management systems. The emphasis is on solid-state batteries, lithium-titanate (LTO), lithium-sulfur (Li-S), and advanced nickel-manganese-cobalt (NMC) chemistries, which offer superior power delivery and reliability in extreme environments.

  1. Panasonic Corporation (Japan)

Panasonic remains at the forefront of high-end traction battery manufacturing, producing the advanced 4680 cylindrical cells in collaboration with Tesla. These batteries deliver 15% higher energy density and improved heat management, making them ideal for electric trucks and premium EVs. In 2025, Panasonic expanded its Nevada and Kansas gigafactories, further strengthening its presence in North America and Asia.

  1. Samsung SDI Co. Ltd. (South Korea)

Samsung SDI focuses on high-nickel NCA and NCM chemistries and continues to be a leader in solid-state traction battery development. In 2025, the company announced pilot production of all-solid-state batteries, offering 50% longer range and enhanced safety for electric buses and trucks. Strategic partnerships with BMW, Stellantis, and Rivian reinforce Samsung SDI’s dominance in high-performance vehicle applications.

  1. LG Chem / LG Energy Solution (South Korea)

LG Chem is a global powerhouse specializing in long-life, high-power lithium-ion traction systems. Its NCMA (Nickel-Cobalt-Manganese-Aluminum) cathode batteries offer increased power density and longer service cycles, designed for commercial EVs and heavy machinery. In 2025, LG expanded its Ohio and Michigan facilities, targeting domestic U.S. EV battery supply chains under the IRA policy.

  1. BYD Company (China)

BYD’s Blade Battery, based on lithium-iron-phosphate (LFP) technology, remains one of the most robust and safest traction battery solutions globally. In 2025, BYD extended its Blade technology to electric buses, mining vehicles, and logistics fleets, enhancing operational reliability and thermal stability. The company’s European and Latin American expansion underscores its growing influence beyond China.

  1. GS Yuasa Corporation (Japan)

GS Yuasa continues to pioneer lithium-titanate (LTO) and nickel-metal hydride (NiMH) batteries tailored for hybrid rail and industrial traction applications. In 2025, the company strengthened its collaboration with Honda to develop solid-state EV batteries and launched industrial energy storage modules optimized for forklifts and mining trucks.

  1. Hitachi Chemical Co. Ltd. (Japan)

Hitachi Chemical (now part of Showa Denko Materials) is known for its LTO-based high-endurance batteries with ultra-fast charging capabilities. These batteries are increasingly used in automated guided vehicles (AGVs), electric buses, and heavy-duty applications. In 2025, Hitachi launched its next-generation high-safety LTO series, offering over 15,000 charge-discharge cycles, targeting logistics and industrial automation sectors.

  1. Systems Sunlight S.A. (Greece)

Systems Sunlight specializes in industrial-grade lithium-ion traction batteries used in material handling, warehousing, and mining operations. The company’s Li.ON FORCE platform, launched in 2025, provides real-time energy monitoring, modular scalability, and enhanced safety systems. The firm also expanded its battery recycling plant in Komotini, Greece, aligning with EU sustainability goals.

  1. Enersys (USA)

Enersys leads the industrial traction and motive power segment, supplying batteries for forklifts, warehouse vehicles, and heavy transport systems. Its TPPL (Thin Plate Pure Lead) and lithium-hybrid systems have gained traction for high-cycle operations. In 2025, Enersys announced its new NX Li-ion series, providing 25% higher operational efficiency and integrated IoT-based health monitoring.

  1. Hoppecke Batteries (Germany)

Hoppecke is a key European player in the specialty traction battery segment, offering customized battery systems for electric trains, underground mining vehicles, and industrial AGVs. The company’s Trak-Air system, with smart ventilation and digital BMS (Battery Management System), ensures optimal temperature regulation and extended service life.

  1. Amara Raja Batteries (India)

Amara Raja is emerging as a high-end lithium-ion system manufacturer catering to EVs, grid storage, and industrial traction vehicles. In 2025, it launched India’s first Giga-scale Lithium Cell Manufacturing Hub in Andhra Pradesh, equipped for NCMA chemistry production. Its batteries are now used in electric buses, forklifts, and off-grid renewable projects.

Conclusion

The global traction battery industry in 2025 stands as a cornerstone of the world’s transition toward clean mobility, industrial electrification, and sustainable energy systems. Valued at USD 69.5 billion in 2025 and projected to grow to USD 302.01 billion by 2032 at a CAGR of 20.14%, the sector is witnessing rapid transformation driven by innovation, policy support, and increasing demand across automotive, logistics, and energy sectors.

The market’s expansion is fueled by the accelerating global shift toward electric vehicles (EVs) and the adoption of high-performance traction batteries in heavy machinery, rail transport, and renewable energy storage. Asia Pacific, led by China, Japan, and South Korea, continues to dominate global production, contributing nearly 48% of total market share, thanks to extensive manufacturing capabilities and robust supply chain ecosystems. Meanwhile, North America and Europe are aggressively localizing production through government incentives and gigafactory investments, strengthening regional self-reliance and reducing import dependence.

Leading manufacturers such as Panasonic Corporation, LG Chem, BYD Company, Samsung SDI, and GS Yuasa are pioneering advancements in solid-state and high-density lithium-ion technologies, enabling longer lifespans, faster charging, and safer energy storage systems. Established Western players, including Enersys, East Penn Manufacturing, Johnson Controls, and Exide Technologies, are increasingly adopting hybrid chemistries, digital monitoring systems, and recycling-based circular business models to stay competitive.

The rise of high-end and specialty manufacturers—notably Systems Sunlight S.A., Hoppecke Batteries, and Amara Raja Batteries—reflects the diversification of traction battery applications beyond electric mobility into industrial automation, renewable integration, and smart warehousing. Simultaneously, emerging startups are capitalizing on innovations in battery management software (BMS), AI-based diagnostics, and next-generation chemistries such as solid-state and lithium-sulfur.

Looking ahead, the global traction battery market will be defined by four pivotal forces:

Technological Innovation – Transition to solid-state and AI-optimized energy systems.

Sustainability Focus – Circular economy models and large-scale battery recycling initiatives.

Supply Chain Localization – Strengthened domestic manufacturing ecosystems in key regions.

Industrial Electrification – Expanding applications beyond vehicles into mining, logistics, and grid storage.

In essence, 2025 marks the inflection point for the traction battery industry — a decade that will determine the future of energy mobility and decarbonized industrial power. With governments, manufacturers, and innovators aligned toward a shared vision of electrification, the traction battery sector is not merely powering vehicles — it is powering the global clean energy revolution.

FAQs – Global Traction Battery Companies (2025)

Below are the most frequently asked questions regarding the global traction battery market, its key players, regional distribution, and future trends. These insights provide a concise overview of how this sector is driving the global shift toward electrification and sustainable energy.

  1. What is a Traction Battery?

A traction battery is a high-capacity rechargeable battery designed to power the electric drive systems of vehicles and industrial machinery. Unlike standard automotive batteries, traction batteries deliver continuous high power output for extended durations, making them essential in electric vehicles (EVs), forklifts, trains, and renewable energy storage systems. These batteries are typically lithium-ion, lead-acid, or solid-state-based, depending on application and performance requirements.

  1. How big is the global traction battery industry in 2025?

The global traction battery market is valued at USD 69.5 billion in 2025, up from USD 57.9 billion in 2023, and is projected to reach USD 302.01 billion by 2032, growing at a CAGR of 20.14% (2025–2032). The growth is primarily driven by the rising adoption of electric vehicles (EVs), industrial electrification, and renewable energy storage integration worldwide.

  1. Which regions dominate the traction battery market?
  1. Who are the top traction battery companies in 2025?

Key global players leading the industry include:

  1. What technologies are driving innovation in traction batteries?

Key technologies shaping the market include:

  1. What are the main applications of traction batteries?

Traction batteries are primarily used in:

  1. What are the latest developments among leading traction battery companies in 2025?
  1. What opportunities exist for startups and emerging players?

Startups are finding opportunities in:

  1. What challenges are traction battery companies facing?

Key challenges include:

  1. What is the future outlook for the traction battery market beyond 2025?

The traction battery industry is expected to witness exponential growth through 2032, driven by electrification of transport and industry. By then, the market will likely exceed USD 300 billion, with strong integration of solid-state batteries, AI-driven BMS, and green energy infrastructure. The focus will shift from capacity expansion to sustainability, efficiency, and recycling, defining the next phase of global energy innovation.