Battery Structural Parts Market, Global Outlook and Forecast 2025-2032

MARKET INSIGHTS

Global Battery Structural Parts market size was valued at USD 1538 million in 2024 and is projected to grow from USD 1932 million in 2025 to USD 7849 million by 2032, exhibiting a CAGR of 26.9% during the forecast period. This explosive growth trajectory underscores the critical role of structural components in modern battery technologies.

Battery structural parts form the physical framework of lithium-ion batteries, ensuring mechanical integrity and safety while directly impacting energy density. These precision components include aluminum/steel housings, cover plates, connection parts, and safety structures which collectively account for approximately 15-20% of a battery's total weight. The cover plate segment currently dominates with 36% market share, reflecting its importance in maintaining cell integrity and thermal management.

Market expansion is driven by surging EV adoption, with square battery applications holding 64% market share due to their space efficiency in vehicle designs. Asia Pacific leads with 84% market penetration, home to manufacturing giants like Shenzhen Kedali Industry which commands significant market share alongside SANGSIN EDP and Zhenyu Technology. The top three players collectively control 62% of the global market, though regional specialists are emerging to address localized supply chain demands.

MARKET DYNAMICS

MARKET DRIVERS

Rapid Expansion of Electric Vehicle Production to Fuel Market Growth

The global transition toward electric mobility represents the most significant driver for battery structural parts. With over 26 million electric vehicles projected to be sold annually by 2030, demand for high-performance battery components continues to surge. Structural parts play a critical role in battery safety and energy density – key factors determining EV range and performance. Major automakers' commitments to phase out combustion engines, combined with government incentives exceeding $30 billion worldwide for EV adoption, create sustained demand for precision battery components.

Technological Advancements in Battery Cell Architecture

Innovations in cell-to-pack and cell-to-chassis battery designs are revolutionizing structural requirements. These next-generation architectures demand specialized components that combine structural integrity with thermal management capabilities. The shift toward 800V battery systems, which require more robust housings and connection parts, further accelerates market growth. Leading manufacturers are investing heavily in R&D to develop lightweight composite materials that improve energy density while meeting stringent safety standards.

➤ The emergence of solid-state battery technology presents new opportunities for structural part innovation, requiring completely redesigned containment solutions.

Growth in Energy Storage Systems Creates Parallel Demand

Beyond automotive applications, the global energy storage market is projected to grow at 33% CAGR through 2030, driving demand for large-scale battery structural components. Stationary storage systems require specialized housing solutions that withstand environmental stresses while maintaining thermal stability. This diversification of applications provides manufacturers with additional revenue streams and mitigates dependence on the automotive sector.

MARKET RESTRAINTS

Raw Material Price Volatility Impacts Profit Margins

The battery structural parts market faces significant pressure from fluctuating prices of aluminum and specialized steel alloys. Recent supply chain disruptions have caused material costs to vary by ±15% quarterly, making long-term pricing strategies challenging for manufacturers. This volatility is particularly problematic for thin-margin components like battery housings, where material costs constitute over 60% of total production expenses.

Stringent Safety and Certification Requirements

Battery components must comply with an evolving landscape of international safety standards, including UN 38.3 for transportation and various regional fire protection regulations. Certification processes can take 6-12 months and require substantial testing investments. These requirements create barriers to entry for new market participants and can delay product launches for established manufacturers.

MARKET CHALLENGES

Precision Manufacturing Demands Strain Production Capacity

Battery structural parts require micron-level precision to ensure proper sealing and electrical isolation. Maintaining this precision at scale remains a significant challenge, with defect rates in some complex components exceeding 5% during production ramp-ups. The industry faces a shortage of specialized stamping and welding equipment capable of meeting these tolerances consistently, creating bottlenecks in the supply chain.

Integration Challenges with New Battery Chemistries

Emerging battery technologies like silicon-anode and lithium-metal chemistries present unique containment challenges due to their expansion characteristics. Structural component manufacturers must continuously adapt designs to accommodate these evolving requirements, often requiring complete retooling of production lines. This dynamic environment increases R&D costs and complicates inventory management across the value chain.

MARKET OPPORTUNITIES

Localized Production Initiatives Create Regional Growth Potential

Government mandates for local battery content, such as the U.S. Inflation Reduction Act's sourcing requirements, are driving investment in regional manufacturing clusters. This presents opportunities for structural part suppliers to establish localized production near major battery gigafactories. The Asia-Pacific region currently dominates production, but new facilities in North America and Europe could redistribute market share over the next decade.

Second-Life Battery Applications Open New Markets

As the first wave of EV batteries reaches end-of-life, the repurposing market for energy storage systems is creating demand for structural modifications. These applications require specialized retrofit components to adapt automotive battery packs for stationary use, representing a $3 billion potential market by 2030. Forward-thinking manufacturers are developing modular designs that facilitate easier repurposing.

Segment Analysis:

By Type

Cover Plate Segment Leads the Market Due to Critical Role in Battery Safety and Energy Density

The market is segmented based on type into:

• Battery Housing

• Cover Plate

• Connection Parts

• Others

By Application

Square Battery Segment Dominates Owing to Widespread Use in Electric Vehicles

The market is segmented based on application into:

• Square Battery

• Cylindrical Battery

By Material

Aluminium Shells Are Preferred for Lightweight and Corrosion Resistance

The market is segmented based on material into:

• Aluminium

• Steel

• Composite Materials

By Manufacturing Process

Stamping Process Holds Significant Share Due to Cost Efficiency

The market is segmented based on manufacturing process into:

• Stamping

• Die Casting

• Extrusion

COMPETITIVE LANDSCAPE

Key Industry Players

Market Leaders Leverage Innovation and Strategic Expansion to Capture Share

The global battery structural parts market exhibits a semi-consolidated structure, with the top three players collectively holding 62% market share as of 2024. Shenzhen Kedali Industry leads the market with an estimated 28% revenue share, owing to its vertically integrated manufacturing capabilities and strong partnerships with major battery cell producers in China.

SANGSIN EDP and Zhenyu Technology follow closely, together accounting for approximately 34% of the market. These companies have gained traction through technological advancements in lightweight aluminum battery housings and precision laser welding for cover plates - crucial components that influence battery safety and energy density.

While Asian manufacturers dominate production, European and North American players are accelerating investments to reduce dependence on imports. Several mid-sized companies are pursuing joint development agreements with automotive OEMs to co-design structural components for next-generation battery platforms.

The competitive intensity is further amplified by regional specialization: Chinese suppliers focus on cost optimization for mass-market EV applications, whereas Japanese and Korean manufacturers emphasize high-precision components for premium battery systems. This dynamic creates distinct value propositions across market segments.

List of Key Battery Structural Parts Companies Profiled

• Shenzhen Kedali Industry (China)

• SANGSIN EDP (South Korea)

• Zhenyu Technology (China)

• Wuxi Jinyang New Material (China)

• Zhongrui Electronic Technology (China)

• Shenzhen Everwin Precision (China)

• Fuji Springs (Japan)

• Changzhou Red Fairy (China)

• Zhejiang Zhongze Precision Technology (China)

BATTERY STRUCTURAL PARTS MARKET TRENDS

Rising Demand for Electric Vehicles to Drive Market Growth

The global shift toward electric vehicles (EVs) is significantly accelerating the demand for battery structural parts, with the market projected to grow at a 26.9% CAGR from 2024 to 2032. As automakers ramp up EV production to meet emission regulations and consumer demand, the need for high-performance battery housings, cover plates, and connection parts has surged. Lithium-ion batteries, which constitute over 80% of the EV battery market, rely on precision structural components to ensure safety, durability, and energy density. Furthermore, government incentives for EV adoption in key markets like China, Europe, and North America are reinforcing this upward trajectory.

Other Trends

Lightweight Material Innovations

Manufacturers are prioritizing weight reduction in battery structural parts to enhance EV efficiency and range. Advanced aluminum alloys and composite materials are increasingly replacing traditional steel, reducing component weight by 15-20% while maintaining structural integrity. This trend aligns with automakers' goals to optimize battery pack designs for higher energy density. Recent developments in stamping and welding technologies have further enabled cost-effective mass production of these lightweight solutions.

Asia Pacific Dominance and Supply Chain Localization

The Asia Pacific region commands 84% of the global market share, driven by China's leadership in battery production and EV manufacturing. Major players like Shenzhen Kedali Industry and Zhenyu Technology are expanding production capacities to meet domestic and international demand. Meanwhile, Europe and North America are investing in localized supply chains to reduce dependence on imports, with several joint ventures announced between automakers and battery component suppliers in the past year. This regional diversification is expected to reshape competitive dynamics in the coming decade.

Regional Analysis: Battery Structural Parts Market

North America
North America represents a high-growth yet competitive market for battery structural parts, primarily driven by the U.S. push toward electric vehicle (EV) adoption and renewable energy storage solutions. The Inflation Reduction Act (IRA) of 2022 has significantly incentivized domestic battery production, resulting in investments exceeding $30 billion in new gigafactories. This has subsequently increased demand for precision battery components, particularly aluminum housings and thermal management systems. However, the region faces challenges in reducing dependence on Asian supply chains for structural parts, prompting local manufacturers to establish partnerships with automotive OEMs. The market is characterized by stringent quality standards, with a strong emphasis on lightweight materials to enhance battery energy density.

Europe
Europe's battery structural parts market is rapidly expanding as the region accelerates its transition to carbon neutrality by 2050. The European Battery Alliance has been instrumental in fostering local production, with over 20 large-scale battery cell plants announced across Germany, France, and Scandinavia. Regulatory frameworks such as the EU Battery Regulation (effective 2024) mandate strict recyclability and material traceability, pushing manufacturers to adopt standardized designs for ease of disassembly. While cylindrical battery formats remain popular, there's growing interest in modular structural solutions to support next-generation solid-state batteries. The region's focus on circular economy principles is reshaping supply chains, though high production costs compared to Asian competitors remain a concern.

Asia-Pacific
As the undisputed leader in battery structural parts production, Asia-Pacific accounts for 84% of global output, with China alone producing 70% of lithium-ion battery components. The region benefits from vertically integrated supply chains, where companies like Shenzhen Kedali control everything from raw material processing to precision machining. Southeast Asian nations are emerging as secondary hubs, with Thailand and Indonesia leveraging their automotive manufacturing bases to supply battery housings. While cost-efficiency drives mass adoption of standardized parts, Japanese and South Korean manufacturers differentiate through high-precision steel alloys for ultra-thin battery enclosures. The market's scale allows aggressive R&D in integrated cell-to-pack technologies, though IP protection issues persist.

South America
South America's battery structural parts market is in its formative stage, with growth primarily tied to Brazil's developing EV ecosystem and Chile's lithium mining expansion. The region shows potential as a supplier of lightweight aluminum for battery enclosures, with Companhia Brasileira de Alumínio investing in rolling mills capable of producing battery-grade sheets. However, inconsistent policy support and lack of localized component manufacturing force automakers to import structural parts at premium costs. Recent free trade agreements with battery-producing nations may stimulate joint ventures, particularly for copper-based connecting parts where Peru and Chile have raw material advantages.

Middle East & Africa
The MEA region represents a nascent but strategically important market, with Gulf nations like Saudi Arabia and UAE positioning themselves as future battery production hubs through multi-billion-dollar industrial diversification programs. While current demand stems primarily from grid storage projects, planned EV manufacturing zones in NEOM and Abu Dhabi are driving preparatory investments in battery component supply chains. Africa's mineral wealth presents opportunities for localized production of battery housings, though infrastructure gaps and skilled labor shortages delay large-scale adoption. Morocco has emerged as an exception, leveraging its automotive sector to pilot battery part fabrication for European OEMs.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Battery Structural Parts Market?

-> The Global Battery Structural Parts market was valued at USD 1,538 million in 2024 and is projected to reach USD 7,849 million by 2032, exhibiting a CAGR of 26.9% during the forecast period.

Which key companies operate in Global Battery Structural Parts Market?

-> Key players include Shenzhen Kedali Industry, SANGSIN EDP, Zhenyu Technology, Wuxi Jinyang New Material, and Zhongrui Electronic Technology, collectively holding about 62% market share.

What are the key growth drivers?

-> Key growth drivers include rising EV adoption, lithium-ion battery demand, and government initiatives for clean energy transition.

Which region dominates the market?

-> Asia-Pacific dominates with 84% market share, driven by China's battery manufacturing ecosystem, followed by Europe with 9% share.

What are the emerging trends?

-> Emerging trends include lightweight materials adoption, integrated structural battery designs, and smart manufacturing technologies.