Annual
battery report
As one of the most widely read industry reports, the Volta Foundation’s ‘Annual Battery Report 2024’ provides a comprehensive overview of the latest and most important developments in battery technology, including research, policy and business, in over 500 pages. Last updated in January 2025, the report is compiled by leading experts from industry and academia and summarises the most significant advances and trends in the industry. It highlights key topics such as research and development, political framework conditions, market developments, sustainability and recycling as well as a well-founded outlook on the future of the battery industry.
Research, development and innovation
In the area of research and development, the report emphasises current breakthroughs, including new materials and technologies that improve the performance, safety and service life of batteries. In particular, advances in solid-state batteries and other innovative energy storage solutions could have a significant impact on the next generation of batteries. These developments show the enormous potential to solve existing challenges in the industry and further optimise battery technology.
Political framework conditions and market dynamics
The Battery Report analyses global political measures and regulations that influence the battery industry. Subsidy programmes and environmental regulations play an important role here, as do the effects of international trade agreements and geopolitical tensions on battery production supply chains. On the market side, there is growing demand for batteries in the areas of electromobility, stationary energy storage and portable electronics. Investment trends, mergers, acquisitions and strategic partnerships within the industry underpin the dynamism of this market.
Sustainability, recycling and the role of cobalt
One focus is on sustainability, recycling and the handling of critical raw materials. While cobalt, for example, continues to play a central role in batteries with a high energy density, there are clear trends towards reducing the use of this material or avoiding it altogether. The report emphasises that many manufacturers, including Tesla, are already switching to low-cobalt or cobalt-free battery cells. Lithium iron phosphate (LFP) batteries in particular have established themselves as a cost-effective alternative.
While LFP batteries score particularly well in the area of standard range vehicles, batteries with a higher energy density are still required for high-performance applications such as long-distance vehicles or high-performance energy storage systems. For high-performance batteries such as nickel-manganese-cobalt (NMC) or nickel-cobalt-aluminium (NCA) with a more sensitive chemical structure, however, cobalt currently remains indispensable as it improves thermal stability and extends service life. Nevertheless, it is clear that technological advances could reduce dependence on cobalt in the long term. Pioneers in the industry are working on advancing innovative solutions such as solid-state batteries that could operate entirely without cobalt.
At the same time, recycling remains an essential tool to secure the availability of cobalt and other raw materials. The report emphasises that effective recycling processes not only minimise the environmental impact of battery production, but also promote the reuse of valuable materials. However, the report makes it clear that there is a lack of political framework conditions to implement recycling across the board and efficiently, even though the technologies are already widely available.
Global leadership and Europe’s challenges
The battery industry is currently dominated by China, the USA and Europe. China remains the undisputed market leader with a market share of 70% to 80% in cell production. Comprehensive control over the processing of raw materials and strong government support consolidate this dominance. The USA is proving to be an important innovator, particularly through companies such as Tesla. However, political reorganisation could influence long-term support measures.
Europe, on the other hand, is undergoing a difficult catch-up process, characterised by dependencies on raw materials, high energy costs and still limited production capacities. Emerging countries such as South Korea and Japan are also positioning themselves as important players with advanced technologies and well-developed production capacities. These countries are making great progress in the field of solid-state batteries in particular, which further strengthens their technological leadership.
The report emphasises that Europe should focus more on future-oriented technologies such as solid-state batteries in order not to lose touch with global innovations. Targeted funding programmes that accelerate the transition from development to industrial application, as well as international partnerships, could be decisive in catching up technologically and securing Europe’s competitiveness in the long term.
Recommendations for action in Europe
Europe must tackle its challenges in a targeted manner. Dependence on imports of critical raw materials could be reduced through recycling and strategic partnerships. High energy costs are another obstacle, although the expansion of renewable energies such as wind and solar energy could help to reduce production costs in the long term. The development of gigafactories in Europe is progressing, but the capacities are not yet sufficient to meet the growing demand. Financial instability, even among major players such as Northvolt, emphasises the need for long-term financing models and government support. Europe should also focus more on research and development in order to drive forward new technologies, keep pace with global innovations, promote environmental protection and further reduce dependence on critical raw materials.
The ‘Battery Report 2024’ provides professionals, policy makers and interested parties with a valuable resource to understand current and future developments in the battery industry. Europe faces the challenge of securing its competitiveness in a globally dominated industry. The report emphasises that technological innovation, political support and a sustainable raw materials policy are crucial to at least compete at an acceptable level. Leadership would only be possible through significant investment, clear regulation and greater international co-operation.
The full report is worth a look as it provides detailed insights into market mechanisms, policy developments and technological trends. Companies, political decision-makers and energy transition stakeholders in particular will find well-founded analyses and practical recommendations for action.
