As global EV adoption accelerates, lithium-ion battery demand continues to grow across key global markets, but regional dynamics are shifting.

With shifting policy landscapes reshaping regional demand patterns, the USA has seen a notable cooling in EV battery demand. Between April and July 2025, the market entered negative growth territory, driven by recent policy rollbacks - including changes to EPA standards and the removal of federal tax credits. Although August saw a brief spike in plug-in EV sales, this was largely due to consumers accelerating purchases ahead of the tax credit phase-out.

In contrast, Europe has emerged as a bright spot. EV unit sales surged in 2025, driven by the next phase of CO₂ emissions standards introduced in January. After a period of stagnation in 2024, growth has now approached 50% as of August. With stricter standards set to escalate through 2030 and a full ban on internal combustion engine vehicles planned for 2035 across the EU and UK, Europe is positioned for sustained EV market expansion.

As EV and energy storage system (ESS) demand accelerates, so too does the urgency to plan for end-of-life battery volumes. Automotive and ESS sectors are expected to account for over 90% of global battery demand by 2050, with recycling infrastructure and policy needing to keep pace. Understanding where these volumes will come from is essential for shaping a sustainable supply chain.

To explore the regional shifts in EV battery demand and what they mean for future recycling volumes, watch the video featuring Luke Gear, Research Manager at Project Blue, as he unpacks the latest data and policy trends shaping the global battery supply chain.

Project Blue welcomes you to join us at our Critical Materials Conference: EV & Battery 2026 in Berlin, Germany.

Following the success of our 2025 event, this conference will once again bring together leading voices from across the EV and lithium-ion battery supply chain – from raw materials to end-use markets – in Europe's automotive heartland.

Over two days, we’ll explore the technologies, markets, and supply chains driving the future of mobility and energy storage. Gain insights, make connections, and shape the conversations that matter for the global battery economy.

Be part of the global battery supply chain dialogue – register today.