Report

The Europe Electric Vehicle Battery Manufacturing Equipment Market - Growth, Trends, And Forecasts Industry is expected to grow from USD 1.07 billion in 2025 to USD 3.35 billion by 2030, at a CAGR of 25.74% during the forecast period (2025-2030).

Key Highlights
- Over the medium term, the growing adoption of electric vehicles (EVs) and supportive government policies are expected to drive the Europe Electric Vehicle Battery Manufacturing Equipment Market. Investments in EV battery manufacturing are increasing, fueled by the need for sustainable transportation solutions. These factors are creating a robust market environment, encouraging technological advancements and production capacity expansion.
- On the other hand, the requirement of high initial investments and setup costs poses a significant restraint on the market during the forecast period. These financial barriers can deter new entrants and slow down the expansion of existing manufacturers.
- Nevertheless, the expansion of local EV battery production presents significant future opportunities for the market. By increasing domestic manufacturing capabilities, Europe can reduce dependency on imports and enhance supply chain resilience. This shift not only supports the growing demand for electric vehicles but also fosters innovation and job creation within the region.
- Spain is expected to dominate the market during the forecast period. Owing to the increasing adoption of electric vehicles and investment in EV battery manufacturing facilities.


Europe Electric Vehicle Battery Manufacturing Equipment Market Trends

Lithium-ion Battery to be the Fastest Growing Segment


- Lithium-ion (Li-ion) batteries are at the forefront of transforming the electric vehicle (EV) landscape, spurring advancements in battery manufacturing. Their standout features, including high energy density, extended cycle life, and rapid charging capabilities, solidify their status as the go-to choice for today's EVs.
- Moreover, lithium-ion batteries outshine competing technologies with their superior capacity-to-weight ratio. While they come with a heftier price tag, leading industry players are countering this by amplifying R&D investments and scaling up production, intensifying competition and driving prices down.
- According to the Bloomberg NEF, from 2015 to 2024, the volume-weighted average lithium-ion battery cost decreased from 463 USD per KWh to 115 USD per KWh. This significant reduction in cost indicates advancements in battery technology and increased production efficiency. The decreasing trend in battery costs is expected to continue, further supporting the adoption of electric vehicles and renewable energy storage solutions.
- In Europe, several governments are rolling out policies and incentives to not only champion electric vehicle (EV) adoption but also to supercharge the growth of lithium-ion battery manufacturing. Responding to the burgeoning demand for these batteries, governments are making hefty investments and actively endorsing the production of rechargeable lithium-ion batteries.
- For instance, in November 2023, the United Kingdom government unveiled a GBP 50 million (USD 63 million) investment strategy, targeting the establishment of a robust battery supply chain, with a spotlight on lithium-ion batteries. This move dovetails with the UK's ambitious goals for EV production. The Battery Strategy, running through 2030, guarantees tailored support for zero-emission vehicles, batteries, and their supply chains, encompassing fresh capital investments and R&D funding. Such initiatives are set to amplify battery production in the United Kingdom in the years ahead and strengthen the nation's battery manufacturing equipment sector.
- Additionally, the escalating appetite for Li-ion batteries has spurred the rise of expansive production hubs, known as Gigafactories. These state-of-the-art facilities are designed for mass battery cell production, catering to the surging demands of electric vehicles (EVs). Key regional players are rolling out initiatives to bolster their lithium-ion battery production, anticipating a surge in demand for EV battery production equipment.
- As a case in point, in May 2024, French company Blue Solutions unveiled its ambitious EURO 2 billion (USD 2.17 billion) gigafactory project in eastern France. This facility aims to produce a cutting-edge solid-state battery for electric vehicles, boasting a swift 20-minute charging capability, with production set to kick off by 2030. Such initiatives are expected to amplify the demand for battery production equipment in France in the coming years.
- Owing to the above developments, the lithium-ion battery production landscape is set for significant growth, which in turn will substantially elevate the EV battery manufacturing equipment market during the forecast period.


Spain To Witness Significant Growth


- The electric vehicle (EV) market in Spain is undergoing a significant transformation, driven by a combination of regulatory mandates, strategic advantages, and government initiatives. This shift has created a pressing need for a localized and robust supply chain, particularly in the area of EV battery manufacturing equipment, positioning Spain as a key player in Europe's electrification efforts.
- Spain's strategic geographical location and its well-established automotive industry further enhance its appeal as a hub for battery manufacturing. The country is rich in mineral resources, including lithium, a critical component of EV batteries. Efforts to develop domestic refining and processing capabilities are underway, which could significantly strengthen Spain's position in the EV value chain.
- For instance, in March 2025, a major lithium deposit was discovered near the Portuguese border in Castilla Leon. Located within Berkeley Energy's Conchas Project, this 31 square kilometer site has been identified as a highly valuable resource. If mined efficiently, it could meet Spain's lithium needs, reducing the country's dependence on imports and supporting the growth of its battery manufacturing sector.
- Additionally, companies are increasingly investing in the battery industry, recognizing its critical role in the future of energy and transportation. Significant capital is being allocated to research and development, as well as the construction of new manufacturing facilities. These investments aim to enhance production capacity, improve battery technology, and meet the growing demand for energy storage solutions.
- For instance, in August 2024, AESC broke ground on its gigafactory in Navalmoral de la Mata, Caceres. Scheduled to begin production in 2026, this plant aims to be one of the first in Europe to manufacture advanced Lithium Iron Phosphate (LFP) batteries at scale, further solidifying Spain's position in the EV battery market.
- In similar, in January 2025, ICL, a global specialty minerals company, entered into a joint venture with Shenzhen Dynanonic Co., Ltd. to establish lithium iron phosphate (LFP) cathode active material production near Barcelona. With an initial investment of approximately EUR 285 million, the new facility at ICL's Sallent site is expected to significantly expand the company's battery materials business and contribute to a sustainable supply chain in Europe.
- According to the European Automobile Manufacturers Association, in 2024, hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) accounted for a significant portion of new car registrations, at 38.6 percent and 5.8 percent respectively. The growing market share of battery electric vehicles (BEVs) at 5.6 percent further underscores the demand for advanced battery manufacturing solutions. This trend highlights Spain's strategic position in the evolving EV landscape.
- Owing to the above points, Spain is expected to witness significant growth during the forecast period driven by the increasing adoption of electric vehicles and other various factors mention above.


Europe Electric Vehicle Battery Manufacturing Equipment Industry Overview

The Europe electric vehicle battery manufacturing equipment market is semi-consolidated. Some of the key players in the market (not in any particular order) include Duerr AG, Hitachi Ltd., Yokogawa Electric, Buhler Holding AG, and Komatsu NTC Ltd.

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- The market estimate (ME) sheet in Excel format
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