Australia Lithium-ion Battery Market Size, Share, and COVID-19 Impact Analysis, By Product Type (Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Nickel Manganese Cobalt, Lithium Manganese Oxide, and Others), By Application (Consumer Electronics, Automobile, Energy Storage, Industrial, and Medical Devices), and Australia Lithium-ion Battery Market Insights, Industry Trend, Forecasts to 2035

Australia Lithium-ion Battery Market Insights Forecasts to 2035

• The Australia Lithium-ion Battery Market Size Was Estimated at USD 803.6 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 22.78% from 2025 to 2035
• The Australia Lithium-ion Battery Market Size is Expected to Reach USD 7680.3 Million by 2035

According to a research report published by Spherical Insights & Consulting, The Australia Lithium-Ion Battery Market Size Is Anticipated To Reach USD 7680.3 Million By 2035, Growing At A CAGR Of 22.78% From 2025 To 2035. The lithium-ion battery market in Australia is driven by rising acceptance of electric vehicles, rising demand for renewable energy storage, government clean energy efforts, increased investments in battery manufacturing, and growing deployment of grid-scale and residential energy storage systems.

Market Overview

The Australia lithium-ion battery market refers to the production, distribution, and application of rechargeable lithium-ion battery systems used for energy storage and power supply. The batteries find extensive use in electric vehicles (EVs), renewable energy storage systems, consumer electronics, industrial equipment and grid stabilization projects. The expansion of renewable energy and electric vehicle markets in Australia leads to lithium-ion battery usage, which enables efficient energy management, decreases carbon emissions and supports the development of sustainable power systems.

The National Battery Strategy supports Australia's lithium-ion battery market through its funding, which includes A$523.2 million dedicated to the Battery Breakthrough Initiative that aims to develop domestic battery manufacturing capabilities. ARENA allocated A$500 million for supply chain growth, while A$30 million supports VSPC's cathode production. Residential battery subsidies worth A$7.2 billion promote household energy storage adoption.

The latest developments show that VSPC has increased its production capacity for lithium-ion battery materials with help from government funding, while Energizer Australia has expanded its advanced battery product range. Australian startups are developing new solutions for energy storage and recycling. The future of the clean energy transition will be supported through electric vehicle batteries, grid storage solutions, local supply chains, and recycling technologies.

Report Coverage

This research report categorizes the market for the Australia lithium-ion battery market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Australia lithium-ion battery market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Australia lithium-ion battery market.

Driving Factors

The lithium-ion battery market in Australia is driven by the increased electric vehicle usage, combined with the fast development of renewable energy initiatives and the rising requirement for grid-connected systems and home energy storage solutions. The growth of the industry receives support from government programs, which create incentives for clean energy development and domestic battery production. The Australian battery ecosystem and market growth receive support from three factors, which include improvements in battery technology, decreasing manufacturing expenses and increased funding for lithium resource extraction and processing.

Restraining Factors

The lithium-ion battery market in Australia is mostly constrained by the high initial investment costs, raw material price volatility, supply chain disruptions, environmental concerns over mining and disposal, limited large-scale manufacturing capacity, and safety risks associated with battery storage and transportation.

Market Segmentation

The Australia lithium-ion battery market share is classified into product type and application.

• The lithium iron phosphate segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Australia lithium-ion battery market is segmented by product type into lithium cobalt oxide, lithium iron phosphate, lithium nickel manganese cobalt, lithium manganese oxide, and others. Among these, the lithium iron phosphate segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. It is widely utilized in energy storage systems and electric vehicles, especially for grid and home storage applications, because of its high safety profile, extended lifecycle, thermal stability, and affordability.

• The energy storage segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. 

The Australia lithium-ion battery market is segmented by application into consumer electronics, automobile, energy storage, industrial, and medical devices. Among these, the energy storage segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The demand for lithium-ion batteries in storage applications is greatly increased by the swift expansion of renewable energy projects, the growing deployment of grid-scale and household battery systems, and the strong government backing for the clean energy transition.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Australia lithium-ion battery market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Austvolt
• Pilbara Minerals Limited
• Energy Renaissance Pty Ltd.
• MANLY Battery
• Battery Energy Power Solutions Pty Ltd.
• Redarc Electronics Pty Ltd.
• Energy Renaissance Pty Ltd
• Lithium Australia NL
• Core Lithium Limited
• Mineral Resources Limited
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

• In November 2025, in an effort to boost domestic next-generation battery production, the Australian Renewable Energy Agency (ARENA) announced AUD 7.86 million in financing for Li-S Energy Ltd. to expand lithium-sulfur battery cell manufacturing capability in Geelong.

• In May 2025, to improve energy stability and reduce emissions at remote operations, Western Australian miner Pilbara Minerals (PLS) installed an 8 MWh BESS system at its Pilgangoora mine.

• In March 2025, to promote grid-scale energy storage, the Australian government supported four new large lithium-ion battery storage projects in Western Australia through the Capacity Investment Scheme.

Market Segment

This study forecasts revenue at the Australia, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Australia lithium-ion battery market based on the below-mentioned segments:

Australia Lithium-ion Battery Market, By Product Type

• Lithium Cobalt Oxide
• Lithium Iron Phosphate
• Lithium Nickel Manganese Cobalt
• Lithium Manganese Oxide
• Others

Australia Lithium-ion Battery Market, By Application

• Consumer Electronics
• Automobile
• Energy Storage
• Industrial
• Medical Devices