Automotive Lithium-sulfur Battery Market Expected to Reach $4.2 Billion by 2035—Allied Market Research

According to a new report published by Allied Market Research, titled, “Automotive Lithium-sulfur Battery Market," The automotive lithium-sulfur battery market size was valued at $424.50 million in 2025, and is estimated to reach $4,179.0 million by 2035, growing at a CAGR of 26.1% from 2026 to 2035.

Asia-Pacific dominates the market in terms of growth, followed by Europe, North America, and LAMEA. Whereas Europe is expected to witness growth at a highest rate in the market during the forecast period.

Automotive lithium-sulfur (Li-S) batteries are a type of rechargeable battery technology that is specifically designed for use in electric vehicles (EVs) and hybrid electric vehicles (HEVs). Li-S batteries are an alternative to the more commonly used lithium-ion (Li-ion) batteries. Li-S batteries are an emerging technology that holds the potential to offer higher energy density and improved performance compared to conventional lithium-ion batteries. Lithium-sulfur batteries use sulfur as the cathode and lithium as the anode, along with a lithium metal or lithium-ion electrolyte. The battery chemistry allows for a higher energy density, which means that Li-S batteries can store more energy per unit weight compared to lithium-ion batteries. This increased energy density can potentially provide longer driving ranges and lighter weight for electric vehicles (EVs).

Furthermore, the automotive industry is actively exploring Li-S batteries as a viable alternative to existing lithium-ion battery technologies. However, Li-S batteries are still in the research and development phase, and commercialization is not yet widespread. There are several technical challenges associated with Li-S batteries, such as the degradation of sulfur cathodes over multiple charge-discharge cycles and the formation of lithium dendrites that can cause safety issues.

In addition, surge in demand for electric vehicles, enhanced energy density, and cost efficiency, are anticipated to drive the market growth. However, safety fears and restricted cycle life hinder the market growth. Further, rise in investment of government association & private enterprises and growing research & technological advancements are some of the factors that are expected to provide lucrative opportunities for the expansion of the automotive lithium-sulfur battery market.

For instance, in May 2023, Lyten, Inc. received investment from Stellantis to accelerate the commercialization of Lyten 3D Graphene andamp; LytCell Lithium-Sulfur EV battery for mobility industry.Furthermore, in September 2021, Lyten, Inc. launched LytCell EV lithium-sulfur (Li-S) battery platform. This innovation is optimized specifically for the electric vehicle (EV) market and is designed to deliver three times (3X) the gravimetric energy density of conventional lithium-ion (Li-ion) batteries.

By battery capacity, the market is categorized into less than 500mAh, between 501 to 1000 mAh, and more than 1000 mAh. The less than 500mAh segment garner the highest market share in 2025 and is projected to lead the market within the forecast timeframe.

By propulsion type, the automotive lithium-sulfur battery market is categorized as battery electric vehicle, hybrid electric vehicle, and plug-in hybrid electric vehicle. Among these segments the battery electric vehicle segment captured a significant market share as compared to other segments.

By vehicle type, the automotive lithium-sulfur battery market is categorized as two-wheelers, passenger vehicles, and commercial vehicles. The passenger vehicles segment dominated in the vehicle type segment garner the highest market share in 2025 and is projected to lead the market within the forecast timeframe.

The Asia Pacific countries will have a higher market share across the region due to the increasing demand for electric vehicles, government support, and the presence of established automotive and battery manufacturers. Several research institutes, universities, and companies in Asia-Pacific have been involved in research and development efforts related to Lithium-Sulfur batteries, aiming to improve their performance, safety, and commercial viability. For instance, in April 2020, the scientists at the Dalian Institute of Chemical Physics (DICP), part of the Chinese Academy of Sciences, have announced the development of a cathode that will enhance the performance capabilities of lithium-sulfur batteries.

KEY FINDINGS OF THE STUDY

• By battery capacity, the less than 500mAh segment leads the market during the forecast period.
• By propulsion type, the battery electric vehicle segment leads the market during the forecast period.
• By vehicle type, the two-wheeler segment is expected to grow at a lucrative growth rate during the forecast period (2026-2035).
• Europe is anticipated to exhibit the highest CAGR during the forecast period.

The key players profiled in automotive lithium-sulfur battery market include Giner, Inc., Ilika, Johnson Matthey, LG Chem, Lyten Inc., Morrow Batteries, NexTech Batteries, PPBC and its licensees, Sion Power Corporation, and Williams Advanced Limited.