The rapid adoption of electric vehicles (EVs) is changing the automotive battery industry. Global electric-car sales exceeded 20 million in 2025, representing 25% of new-car sales worldwide, and the IEA expects sales to reach approximately 23 million in 2026.
This growth is creating pressure on conventional automotive batteries, particularly starter batteries used in internal combustion engine (ICE) vehicles. However, EV growth does not mean the traditional battery market will disappear. Instead, demand is shifting across new vehicles, replacement markets, hybrid applications and low-voltage systems.
How EV Growth Is Changing the Traditional Battery Market
EV growth is affecting traditional batteries through three key market forces:
- Demand Displacement: As EVs replace ICE vehicles in new-vehicle sales, demand for conventional starter batteries in fully electric vehicles decreases.
- Demand Retention: The large existing ICE vehicle fleet continues to require replacement batteries throughout its operating life, supporting the automotive aftermarket.
- Demand Creation: EVs and hybrids can require low-voltage auxiliary batteries, while technologies such as AGM and EFB continue to serve vehicles with higher electrical requirements.
The result is a transition in the traditional battery market rather than its immediate replacement.
Why Traditional Batteries Are Still Relevant
1. Existing ICE Vehicle Fleet
The difference between EV sales and the total vehicle fleet is important. Although EVs represented 25% of new global car sales in 2025, only around 5% of the global car stock was electrified at the end of the year.
This means the majority of vehicles on the road still depend on conventional powertrain technologies and associated low-voltage battery systems.
For battery manufacturers and distributors, this creates an important distinction:
- OEM market: EV growth gradually reduces conventional starter-battery demand.
- Aftermarket: Existing ICE vehicles continue generating replacement demand.
Therefore, battery demand is unlikely to decline at the same rate as EV sales increase.
2. Automotive Aftermarket
Traditional batteries are replacement products as well as original-equipment components. Their aftermarket demand depends on the size and age of the vehicle fleet, battery replacement cycles and regional vehicle usage.
This gives established battery manufacturers, dealers and distributors continued opportunities even as EV penetration increases.
3. Hybrid Vehicles
Hybrid vehicles combine electric propulsion with an internal combustion engine and can continue to require low-voltage battery systems. The exact battery configuration varies by vehicle architecture.
This makes hybrids an important transition segment between conventional and fully electric vehicles.
4. Non-Automotive Applications
The broader lead-acid battery market also serves industrial, backup-power, telecommunications, and other applications. These segments are influenced by factors beyond passenger EV adoption, helping diversify demand for lead-acid technology.
How EVs Are Creating New Battery Opportunities
1. EV Auxiliary Batteries
EVs can use a separate low-voltage auxiliary battery to support vehicle electronics and other electrical functions. A DC/DC converter can transfer energy from the high-voltage traction battery to the low-voltage system.
The chemistry of an auxiliary battery varies by vehicle manufacturer and architecture, so it would be incorrect to assume that every EV uses a lead-acid battery.
However, lead-acid technology can still have a role in EV applications. The U.S. Department of Energy has supported research into 12V lead-acid batteries for safety-critical EV applications.
2. AGM and EFB Batteries
The traditional battery market is also evolving through advanced technologies such as:
These technologies are used in applications with greater cycling requirements, higher electrical loads and start-stop functionality.
The shift is therefore not simply:
Lead-acid → lithium-ion
It is increasingly:
Conventional batteries → advanced low-voltage batteries → application-specific battery solutions
3. Application-Specific Battery Solutions
As ICE, hybrid and electric vehicles coexist, battery manufacturers increasingly need to develop products according to specific electrical architectures and OEM requirements.
This creates opportunities for companies with capabilities in battery engineering, testing, quality control and vehicle-specific applications.
What EV Growth Means for Battery Manufacturers
Battery manufacturers can prepare for the changing market by focusing on five areas:
1. Diversify Product Portfolios
Expand beyond conventional starter batteries into AGM, EFB, hybrid applications, EV auxiliary batteries and other specialized low-voltage products.
2. Strengthen OEM Capabilities
Modern vehicle platforms require application-specific performance and testing. Strong product development, quality management and engineering capabilities can help suppliers compete for OEM programs.
3. Monitor Vehicle-Parc Trends
Manufacturers should track both EV sales and the existing ICE vehicle fleet. Focusing only on EV penetration can overestimate the immediate impact on replacement-battery demand.
4. Develop Application Expertise
As vehicle architectures become more diverse, understanding battery specifications, electrical systems, and vehicle applications becomes increasingly important.
5. Strengthen Recycling and EPR Capabilities
India’s Battery Waste Management Rules, 2022 establish an Extended Producer Responsibility (EPR) framework covering automotive, EV, industrial and other battery categories. Producers are required to meet prescribed obligations for the collection and environmentally sound management of waste batteries.
What EV Growth Means for Battery Dealers and Distributors
The EV transition will gradually change battery distribution.
Dealers and distributors may need to manage products for:
- Conventional ICE vehicles
- Start-stop vehicles
- Hybrid vehicles
- EV auxiliary systems
- AGM and EFB applications
This makes application knowledge more important than simply matching battery size. Correct battery selection should consider vehicle specifications, electrical requirements, and manufacturer recommendations.
For distributors, the transition also creates an opportunity to serve both the existing ICE aftermarket and emerging electrified-vehicle applications.
Traditional Batteries vs EV Batteries
| Factor | Traditional Automotive Batteries | EV Traction Batteries |
| Primary role | Starting and low-voltage functions | Vehicle propulsion |
| Main applications | ICE, hybrid and some auxiliary systems | Battery-electric vehicles |
| Common technology | Lead-acid variants | Predominantly lithium-ion |
| Key demand driver | Vehicle fleet and replacement cycles | EV production and adoption |
| B2B opportunity | OEM, aftermarket and auxiliary applications | EV OEM and battery ecosystem |
| Market direction | Evolving and diversifying | Rapidly expanding |
The two markets should therefore not be viewed as direct substitutes in every application. They serve different functions within increasingly diverse vehicle architectures.
What Is the Future of the Traditional Battery Market?
The traditional battery market will face long-term pressure as EVs take a larger share of new-vehicle sales. However, the transition will be gradual because the global ICE vehicle fleet remains much larger than the EV fleet.
At the same time, replacement demand, hybrid vehicles, advanced low-voltage technologies and EV auxiliary applications can continue creating opportunities.
For battery manufacturers, OEM suppliers, dealers and distributors, the most practical response is diversification rather than dependence on a single battery category.
The future traditional battery market is therefore likely to be more application-specific, technologically diverse and closely connected to both conventional and electrified vehicles.
Conclusion
EV growth is reshaping the traditional battery market, but it is not making conventional battery technologies irrelevant. While rising EV adoption will gradually reduce demand for starter batteries in new ICE vehicles, the existing vehicle fleet, aftermarket replacement demand, hybrid applications and low-voltage auxiliary systems will continue to support the market.
For battery manufacturers, OEM suppliers, dealers and distributors, the transition presents both challenges and opportunities. Businesses that diversify their product portfolios, strengthen application expertise and adapt to evolving vehicle technologies will be better positioned to serve the changing automotive battery market.
FAQs
EV growth is reducing conventional starter-battery demand in new ICE vehicles while creating new requirements for auxiliary and advanced low-voltage batteries. The existing ICE vehicle fleet continues to support replacement demand.
Not completely. EV growth will reduce some conventional starter-battery applications, but lead-acid batteries can remain relevant in replacement, hybrid, auxiliary and non-automotive applications.
Some EVs can use lead-acid batteries for low-voltage auxiliary functions, while others use different battery chemistries. The configuration depends on the vehicle’s design and manufacturer.
Manufacturers face long-term pressure on conventional starter-battery demand but can pursue opportunities through AGM, EFB, auxiliary batteries, hybrid applications and other specialized battery products.
Demand for conventional starter batteries is likely to face long-term pressure as EV penetration rises. However, the large existing ICE fleet and aftermarket replacement demand mean the overall transition is expected to be gradual.