Cobalt-free Battery Market Size, Share, Growth, and Industry Analysis, By Types (Capacity 115Ah, Others) , Applications (BEV, PHEV) and Regional Insights and Forecast to 2034

Cobalt-free Battery Market Size

The Global Cobalt-free Battery Market size was USD 392 Million in 2024 and is projected to reach USD 425 Million in 2025, USD 471 Million in 2026, and further expand to USD 2584 Million by 2034. This trajectory represents a CAGR of 7.74% during the forecast period, driven by the rising adoption of lithium iron phosphate (LFP) and manganese-rich chemistries. Cobalt-free technologies now account for more than 30% of all lithium-based battery production, with nearly 46% demand from electric vehicles and 35% from stationary energy storage solutions. Environmental and ethical concerns continue to accelerate the shift toward sustainable battery materials globally.

The US Cobalt-free Battery Market is witnessing steady expansion, supported by rising EV production and grid-scale energy storage deployment. More than 28% of battery-related investments in the US are now allocated to cobalt-free chemistries. Government-backed initiatives for sustainable sourcing and local manufacturing have triggered a 33% growth in LFP battery production capacity. Additionally, over 31% of new energy storage pilot projects in the US have adopted cobalt-free alternatives due to lower thermal risk and longer lifespan, reinforcing domestic supply chain resilience.

Key Findings

• Market Size: Valued at USD 392 Million in 2024, projected to touch USD 425 Million in 2025, further expand to USD 2584 Million by 2034 at a CAGR of 7.74%.
• Growth Drivers: Over 34% demand driven by ethical sourcing, 45% EV makers prefer cobalt-free, and 31% rise in storage use.
• Trends: 38% shift toward LFP batteries, 29% adoption in grid storage, and 33% OEMs switching to cobalt-free supply chains.
• Key Players: Panasonic, CATL, LG Energy Solution, SVOLT, BYD & more.
• Regional Insights: Asia-Pacific holds 55% market share due to large-scale EV production; North America follows with 20%, Europe at 17%, and Middle East & Africa collectively account for 8%, driven by renewable storage and ethical sourcing initiatives.
• Challenges: 28% supply chain disruption, 21% raw material sourcing issues, and 15% energy density limitations in cold climates.
• Industry Impact: 44% surge in sustainable battery investment, 37% OEMs restructure supply chains, 25% lifecycle improvement in new designs.
• Recent Developments: 35% rise in LFP adoption, 27% patents filed, 22% capacity expansion across cobalt-free gigafactories globally.

The Cobalt-free Battery Market is undergoing a transformation as sustainability, cost-efficiency, and regional independence drive innovation. Over 55% of global cobalt-free battery production is concentrated in Asia-Pacific, while North America and Europe are growing through policy support and technology investments. More than 33% of automakers now use LFP batteries in new vehicle models, with utility and residential energy storage sectors adopting cobalt-free chemistries at a rate of 29%. These batteries offer up to 40% longer lifecycle and 30% cost savings over traditional cobalt-based alternatives, making them a viable option for future energy systems and transport electrification.

Cobalt-free Battery Market Trends

The cobalt-free battery market is witnessing a sharp shift in technology and manufacturing priorities, driven by environmental concerns, cost advantages, and ethical sourcing issues surrounding cobalt. Lithium iron phosphate (LFP) batteries, a key alternative in the cobalt-free segment, now account for over 31% of the total lithium-ion battery deployment globally. This rise is primarily due to their enhanced safety profile and longer cycle life. Compared to traditional cobalt-based batteries, LFP batteries have demonstrated a 50% reduction in fire risk and a 40% longer life cycle, making them highly favorable for applications in electric vehicles and grid storage. In the electric vehicle (EV) sector, demand for cobalt-free solutions is escalating, with nearly 27% of new EVs now utilizing LFP chemistry. Tesla, BYD, and other leading OEMs have increased their reliance on cobalt-free technology due to its 20% lower production cost. Additionally, the supply chain for LFP batteries is 35% more localized, reducing dependency on unstable cobalt mining regions and ensuring more resilient production timelines. Moreover, the recyclability of LFP materials is 45% more efficient compared to cobalt-rich batteries, enhancing sustainability efforts across the board. The market is further bolstered by government policies and incentives supporting low-cost, ethically sourced battery technologies. As regulatory bodies tighten ESG compliance norms, manufacturers are adopting cobalt-free chemistries to maintain competitive advantage and reduce environmental impact.

Cobalt-free Battery Market Dynamics

DRIVERS

Rising demand for ethical and sustainable batteries

Over 60% of global consumers and 72% of automotive manufacturers now prioritize ethically sourced raw materials, directly impacting battery procurement strategies. With cobalt mining often linked to labor violations and environmental degradation, cobalt-free batteries offer a 48% more sustainable production process. Regulatory compliance pressures have surged by 30%, compelling battery producers to shift toward greener alternatives. This demand shift is also reflected in the industrial sector, where cobalt-free batteries have seen a 25% increase in adoption due to their minimal ecological footprint.

OPPORTUNITY

Expansion in electric mobility and energy storage

The global shift toward e-mobility and decentralized energy solutions presents a major opportunity for cobalt-free batteries. Electric vehicle deployment using LFP technology has grown by 33%, driven by increased performance reliability and affordability. In the energy storage segment, grid-scale cobalt-free battery systems have expanded by 40%, offering utilities longer lifespan and 28% lower maintenance needs. Moreover, commercial and residential solar storage projects using LFP batteries have surged by 36%, capitalizing on their safety and efficiency benefits. With this momentum, cobalt-free battery applications are poised for widespread scaling across emerging and mature markets.

RESTRAINTS

"Limited energy density and performance efficiency"

Cobalt-free batteries, especially lithium iron phosphate (LFP) variants, often face limitations in energy density when compared to traditional cobalt-based chemistries. On average, LFP batteries offer 15% to 20% lower energy density, which can reduce the range of electric vehicles and limit their use in high-performance applications. This limitation has led to 18% of automakers hesitating to fully transition to cobalt-free options for long-range EVs. Additionally, 23% of battery engineers cite thermal performance and cold-weather efficiency as significant barriers, further impacting adoption across colder geographic regions. These performance constraints create a notable restraint in markets requiring high energy output and compact form factors.

CHALLENGE

"Rising costs of alternative raw materials and supply constraints"

As cobalt usage declines, pressure has shifted to alternative materials like lithium, iron, and phosphate, causing price volatility. The cost of lithium extraction has surged by 37%, while iron phosphate processing has seen an increase of 28% due to rising global demand. Furthermore, 34% of manufacturers report disruptions in the phosphate supply chain, particularly in regions dependent on limited mineral exports. This shift has also strained production capacities, with 21% of battery makers facing extended lead times due to material sourcing issues. These challenges complicate scale-up efforts and hinder competitive pricing in the cobalt-free battery ecosystem.

Segmentation Analysis

The cobalt-free battery market is segmented by type and application, each reflecting unique demands and performance expectations across sectors. On the type front, variations like 115Ah cells are gaining market traction for their suitability in commercial electric vehicles and stationary energy storage. Meanwhile, smaller and custom cells fall under the “Others” category, serving a wider base of consumer electronics and light EVs. By application, battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) are the primary adopters. BEVs dominate due to their full reliance on batteries, while PHEVs are increasingly integrating cobalt-free chemistry to meet regulatory emissions benchmarks and lower costs. Each segment plays a distinct role in driving adoption and innovation in the cobalt-free battery landscape.

By Type

• Capacity 115Ah: This type accounts for nearly 29% of total cobalt-free battery deployment due to its high reliability and stable discharge profile. It is particularly favored in commercial EV fleets and utility-scale storage projects. With a lifecycle improvement of 42% compared to traditional cobalt-based cells, the 115Ah capacity type is emerging as a standard for heavy-use environments.
• Others: Representing a more flexible and diverse product category, the “Others” segment includes custom battery modules used in portable electronics and lightweight EVs. This type comprises 38% of the total unit volume in consumer electronics and delivers a 25% lower thermal risk during extended usage. It is especially preferred in regions focused on safety and regulatory compliance.

By Application

• BEV: Battery Electric Vehicles (BEVs) utilize cobalt-free batteries in over 45% of their latest models, particularly in compact and mid-size segments. LFP-based cobalt-free batteries are reducing vehicle cost by 18% while offering a 50% longer cycle life. This segment remains the strongest adopter due to its complete dependence on battery technology for propulsion.
• PHEV: Plug-in Hybrid Electric Vehicles (PHEVs) have integrated cobalt-free batteries in 32% of new models, especially in countries prioritizing sustainable transport. With emissions reduction mandates increasing by 40%, PHEV manufacturers are switching to LFP batteries to balance performance with compliance. The reduced need for rapid charging in hybrids makes cobalt-free chemistry a logical and efficient choice.

Regional Outlook

The cobalt-free battery market is experiencing diversified regional growth, shaped by technological adoption, manufacturing capacity, and policy frameworks. Regions like Asia-Pacific are spearheading production with large-scale adoption across electric mobility and grid storage, while North America and Europe are focused on sustainability goals and localization of supply chains. North America is showing increased investment in LFP-based gigafactories, with over 30% of new capacity announcements centered around cobalt-free chemistries. Europe follows with strong automotive OEM involvement and green mobility subsidies driving demand. Asia-Pacific remains the global production hub, accounting for over 55% of cobalt-free battery output. The Middle East & Africa is emerging with pilot projects and renewable energy integration where cobalt-free batteries are being tested for scalability and cost-effectiveness. Each region is carving a unique trajectory, yet all share a common direction toward ethical sourcing, lower environmental impact, and long-term economic sustainability for next-generation battery technologies.

North America

In North America, the cobalt-free battery market is being driven by strategic investments and regulatory momentum. Over 35% of newly planned EV battery facilities are focused on LFP and other cobalt-free technologies. Adoption of cobalt-free chemistries in the EV sector has grown by 28%, supported by major automakers shifting toward sustainable alternatives. Public-private partnerships and state-level clean energy mandates have further boosted demand, with over 32% of grid-level energy storage pilots opting for cobalt-free solutions. There is a growing push toward localizing the supply chain, reducing dependency on cobalt imports by 41%. These factors are positioning the region as a leader in safe, ethical, and scalable battery production.

Europe

Europe is aggressively transitioning toward cobalt-free batteries, driven by its net-zero commitments and ethical sourcing regulations. Nearly 38% of EV manufacturers across the EU have integrated LFP battery technology into their product lines. Germany, France, and the Nordic countries are leading this shift, with over 40% of government-funded projects supporting cobalt-free battery R&D. Additionally, cobalt-free energy storage systems are seeing a 31% rise in use within commercial and residential solar applications. European battery gigafactories are now producing more than 26% of cobalt-free units intended for intra-regional use. This trend is strengthening supply chain resilience and aligning with EU-wide sustainability goals.

Asia-Pacific

Asia-Pacific remains the dominant force in the cobalt-free battery landscape, accounting for over 55% of total production globally. China alone contributes more than 48% of the region’s output, largely driven by its mass adoption of LFP batteries in electric buses and economy vehicles. Japan and South Korea are also increasing their R&D focus on cobalt-free chemistries, with R&D spending in this segment growing by 29%. Moreover, cobalt-free batteries are used in over 37% of utility-scale renewable energy storage projects across the region. Manufacturers in Asia-Pacific benefit from vertically integrated supply chains and lower production costs, allowing them to scale faster and meet rising domestic and export demands.

Middle East & Africa

The Middle East & Africa is an emerging market for cobalt-free batteries, with growth largely tied to clean energy and off-grid electrification. Over 22% of solar mini-grid projects now incorporate LFP batteries due to their thermal stability and long cycle life. Countries like South Africa and the UAE are investing in pilot programs that utilize cobalt-free chemistries in grid-level storage and e-mobility. Adoption has grown by 19% across sustainable infrastructure initiatives, while local governments are pushing for policies favoring low-cost, low-maintenance storage options. Although the region’s share remains modest, it is expected to accelerate with further investment in battery technology and infrastructure.

List of Key Cobalt-free Battery Market Companies Profiled

Investment Analysis and Opportunities

The cobalt-free battery market is attracting robust investments across both established and emerging economies. Global investments in cobalt-free battery production facilities have increased by 44%, with the majority aimed at LFP gigafactory setups and raw material localization. Over 37% of battery startups now focus solely on cobalt-free chemistries, reflecting a shift in venture capital interest. Additionally, public investments in research and commercialization of LFP and manganese-rich batteries have risen by 31%. Strategic alliances between automakers and battery suppliers have accelerated, with over 29% of EV-related partnerships centered around cobalt-free supply chains. Countries implementing subsidies for ethical and sustainable technologies have experienced a 33% uptick in cobalt-free battery deployment across mobility and grid storage applications. The long-term cost efficiency and environmental compliance of cobalt-free batteries make them a high-potential area for institutional, government, and corporate investors. With expanding demand, infrastructure, and use cases, the sector presents a scalable and future-proof investment opportunity.

New Products Development

New product development in the cobalt-free battery market is advancing rapidly, with companies focusing on high-efficiency, low-cost alternatives to traditional lithium-ion batteries. Over 39% of recent battery patents filed globally are related to cobalt-free chemistries, particularly LFP and lithium manganese iron phosphate (LMFP). CATL, SVOLT, and BYD have introduced next-gen LFP batteries with a 12% to 17% boost in energy density compared to previous versions. More than 27% of new electric vehicle models launched include cobalt-free battery variants, especially in the compact and mid-range segments. Additionally, solid-state cobalt-free battery prototypes have demonstrated a 24% increase in cycle life during pilot testing. In the stationary storage segment, manufacturers are developing modular cobalt-free packs with 20% higher scalability for renewable energy systems. Innovations are also emerging in electrolyte formulations and thermal management systems, further enhancing performance. The focus on cobalt-free R&D is now central to product pipelines, pushing manufacturers to continuously improve safety, efficiency, and sustainability.

Recent Developments

• CATL Unveils LMFP Battery Platform: In 2023, CATL introduced its upgraded lithium manganese iron phosphate (LMFP) battery platform. The innovation delivers up to 15% higher energy density compared to traditional LFP cells and has already been integrated into 22% of newly produced economy EVs in China. This platform not only improves range but also lowers thermal runaway risks by over 30%, making it a major advancement in cobalt-free technology.
• BYD Expands Blade Battery Production: In early 2024, BYD expanded its signature cobalt-free Blade Battery production line, increasing output by 35%. The company now supplies its Blade batteries to over 31% of its EV models, with enhanced structural integrity and a space-saving design that increases pack-level energy by 17%. This move further solidifies BYD’s leadership in the LFP battery space.
• SVOLT Begins LMFP Mass Production: In mid-2023, SVOLT initiated mass production of its LMFP batteries, achieving a 28% cost reduction per kWh compared to earlier chemistries. The batteries, aimed at mid-size electric sedans and storage systems, have seen adoption rates rise by 19% within six months of market entry. SVOLT’s deployment focuses on affordability and safety without compromising performance.
• Panasonic Accelerates Cobalt-Free R&D: Panasonic reported a 33% increase in R&D investment for cobalt-free batteries in 2024. The company’s prototype LFP batteries are being tested across two major Japanese auto brands and have demonstrated 25% longer lifecycle performance under high-temperature conditions. These advancements aim to target both automotive and industrial energy storage sectors.
• LG Energy Solution Partners with OEMs: In 2023, LG Energy Solution formed strategic partnerships with three global EV manufacturers to deploy cobalt-free battery packs. These LFP packs now represent 18% of LG’s total automotive battery shipments. The partnership aims to cut costs by 21% and improve charge-discharge efficiency by 14% across participating vehicle models.

Report Coverage

The cobalt-free battery market report offers a comprehensive analysis across product types, applications, regional dynamics, competitive landscape, and emerging trends. It covers a detailed segmentation based on type—such as 115Ah and others—and applications including BEV and PHEV. More than 45% of the analysis emphasizes the transition from cobalt-based to LFP and LMFP chemistries. Regional coverage includes Asia-Pacific, North America, Europe, and Middle East & Africa, reflecting their respective 55%, 20%, 17%, and 8% market involvement. The report highlights technological innovations and tracks over 30% growth in LFP production announcements and supply chain realignments across major economies. Company profiling spans leading players like CATL, Panasonic, LG Energy Solution, and SVOLT, accounting for a combined 70% of the cobalt-free market landscape. It also outlines recent developments, including strategic alliances, new product launches, and investment patterns. Additionally, the report examines regulatory frameworks influencing 34% of the market decisions, especially in sustainable mobility and energy storage. This extensive coverage offers stakeholders a 360-degree view of the evolving cobalt-free battery ecosystem.