Lithium-ion batteries and hydrogen fuel cells are among the most promising emerging technologies driving innovation in key sectors such as automotive and energy storage. IDTechEx’s research portfolios on batteries, energy storage and electric vehicles track the latest developments.
Sustainability meets electrification
Sustainability is a defining concept for the future and is closely tied to the electrification of transport. In 2023, IDTechEx reported battery demand of 800 GWh across various types of electric vehicles, highlighting the significant growth potential of battery technologies.
IDTechEx’s report Electric Vehicles: Land, Sea, and Air 2025–2045 states that electric cars made up the largest share of battery demand, accounting for 86 percent in 2023.
Subsidies and regulatory restrictions are among the policy tools expected to shape the future of electrification. As companies aim to meet net-zero targets and avoid penalties linked to excess emissions, these measures are likely to accelerate the shift, making electrification increasingly viable and incentivised.
CATL and Ellen MacArthur Foundation join forces for battery circularity
Li-ion batteries are used in nearly all electric vehicles on the road today, thanks to their performance and cost advantages, and are expected to remain dominant. Annual demand has grown rapidly in recent years, rising from around 10 GWh in 2010 to 1,000 GWh in 2024.
The market for Li-ion battery cells alone is forecast to exceed US$400 billion by 2035. By 2030, uptake is expected to broaden further, with applications extending beyond cars to include electric two- and three-wheelers, vans and heavy-duty trucks.
IDTechEx’s latest report, Advanced Li-ion Batteries 2025–2035: Technologies, Players, Markets, Forecasts, explores next-generation anode and cathode materials, alongside a range of emerging use cases.
Second-life batteries and AI machine learning
True sustainability is entering the battery sector through repurposing and recycling technologies. These emerging solutions are starting to reshape the landscape and may transform future battery supply and demand,from material extraction to extending battery life.
Repurposing batteries from first-life applications could reduce reliance on limited supplies of critical materials such as nickel, cobalt and copper. It also cuts the need for intensive extraction processes, helping to lower carbon emissions and reduce associated costs—ultimately opening the door to more sustainable battery lifecycles.
Scandinavia – E-bus batteries find second life in energy storage
The report Second-life Electric Vehicle Batteries 2025–2035: Markets, Forecasts, Players, and Technologies explores emerging strategies for battery reuse and repurposing. AI integration is expected to accelerate developments in the sector, from quicker cell testing and better in-life diagnostics to enhanced material discovery and early thermal runaway warnings for liquid electrolyte batteries.
Machine learning tools are increasingly being applied across the entire battery lifecycle. From initial material selection through to end-of-life recycling and refurbishment, these systems help optimise performance and define reuse strategies, improving sustainability and extending battery value.
Nowos receives €6 million to expand battery repair
As demand for energy density hits new highs, interest in alternative battery chemistries is growing. With Li-ion technology nearing its energy density limits, changes may soon be needed to maintain its role in core applications.
IDTechEx’s report AI-Driven Battery Technology 2025–2035: Technology, Innovation and Opportunities examines how AI is being applied in battery research, discovery and diagnostics, highlighting several key areas of innovation.
Stationary energy storage and fuel cell technologies
The future will need to be one with fewer grid instability issues if the penetration of variable renewable energy is to increase. Energy security could be improved with other sources of electricity generation, including energy storage technologies, stationary fuel cells, or wind and solar power.
IDTechEx's research report, "Batteries for Stationary Energy Storage 2025-2035: Markets, Forecasts, Players, and Technologies", showcases the extensive capabilities of Li-ion batteries specifically to store energy at cost competitive prices, making BESS technologies more widely available.
ESG: The EU wants to be a pioneer
Stationary hydrogen fuel cells offer a versatile energy storage solution across a range of applications. Using hydrogen and oxygen to generate electricity, they are valued for their sustainability and environmental performance. When stacked, these units can reliably power high-output systems, making them suitable for both electric vehicles and commercial operations.
Proton exchange membrane fuel cells (PEMFCs) are noted for their fast start-up, compact design and low operating temperature. With high electrical efficiency and power density, PEMFCs offer strong potential for future use in electric mobility and are among the most closely watched technologies in the fuel cell sector.
Stay informed – subscribe to our free newsletters
The report Fuel Cell Electric Vehicles 2025–2045: Markets, Technologies, Forecasts presents IDTechEx’s analysis of trends, key players and major applications expected over the next two decades.
Solid oxide fuel cells (SOFCs) are likely to see wider adoption in industrial and commercial power systems, driven by their high output and fuel flexibility. Their efficiency and performance advantages make them the dominant technology in the sector, according to Stationary Fuel Cell Markets 2025–2035: Technologies, Players & Forecasts, with continued improvements expected in the years ahead. (hcn)
