Vietnam Battery - Market Size, Share, Trends, and Growth Forecasts, 2026-2031 | EV Adoption and Lower Li-Ion Costs Drive 10.09% CAGR

Dublin, Oct. 29, 2026 (GLOBE NEWSWIRE) -- "Vietnam Battery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The Vietnam battery market is estimated at USD 1.13 billion in 2026 and is projected to reach USD 1.83 billion by 2031, expanding at a CAGR of 10.09% during the forecast period. Market growth is being driven by declining lithium-ion battery prices, rising electric vehicle and e-bike adoption, industrial power-backup upgrades, and government support for local battery manufacturing.

Demand spans primary and secondary batteries across technologies including Lead-Acid, Li-Ion, Nickel-Metal Hydride, Nickel-Cadmium, Sodium-Sulfur, Solid-State, Flow Battery, and emerging chemistries. Key applications include automotive, industrial systems, portable electronics, power tools, SLI, telecommunications infrastructure, uninterruptible-power-supply equipment, and energy storage.

Declining Lithium-Ion Cell Prices Support Market Expansion

Lower lithium-ion battery costs are improving the commercial viability of electric mobility and stationary energy storage in Vietnam. Pack costs for lithium-iron-phosphate systems fell below USD 100 per kWh in 2023, while global averages are expected to decline further through 2030. Because material expenses account for a significant share of cell production costs, less expensive cathodes can quickly reduce prices for electric vehicles and storage systems.

Vietnam's e-motorcycle industry, already the fourth largest worldwide, is positioned to benefit from this trend. Electric two-wheelers are expected to become increasingly competitive with 125 cc gasoline scooters as pack prices approach USD 80 per kWh. Industrial operators are also considering lithium-ion systems as replacements for valve-regulated lead-acid batteries, particularly where longer operating life, lower maintenance requirements, and shorter payback periods justify investment.

Ho Chi Minh City's plan to convert 400,000 motorcycles to electric propulsion beginning in 2026 could provide an important test of mass-market adoption and supporting charging infrastructure.

EV and E-Bike Adoption Strengthens Battery Demand

Electric cars represented approximately 40% of new passenger-car sales in Vietnam during 2025, supported largely by VinFast's domestic production expansion. This adoption rate places Vietnam among Southeast Asia's leading electric vehicle markets and creates substantial demand for locally assembled battery packs, components, and related services.

Further growth is anticipated in the two-wheeler segment. Hanoi's planned July 2026 ban on fossil-fuel motorcycles within Ring Road 1 is expected to encourage the transition to electric models. Decision 876/QD-TTg, which targets 50% electrification of urban transport by 2030, also reinforces the long-term outlook for automotive battery demand.

Competition in the e-motorcycle market remains strong, with domestic assemblers and Chinese brands such as Yadea pursuing both battery-swap and plug-in platforms. Premium electric motorcycles increasingly use swappable lithium-ion packs, while lower-cost models continue to rely on lead-acid technology. This division supports demand for multiple battery chemistries and product configurations.

Grid-Scale Battery Storage Faces Development Challenges

Vietnam's revised Power Development Plan VIII targets up to 16.3 GW of battery storage by 2030. However, the country's historic preference for pumped-hydro projects continues to limit near-term deployment of large lithium-ion battery energy storage systems. Pumped-hydro offers longer discharge periods and extended asset life, while lithium-ion systems are more closely aligned with short-duration frequency regulation and grid-balancing applications.

Electricity of Vietnam launched a 50 MW/50 MWh pilot project in 2024, but standardized grid-connection codes for independent operators remain limited. The absence of a wholesale ancillary-services market also restricts potential revenue. Developers currently depend heavily on time-of-use arbitrage, which may not meet investment thresholds when installed costs range from USD 250-350 per kWh. Despite these barriers, increasing solar and wind curtailment could strengthen the need for grid-scale battery storage.

Secondary Batteries Lead the Vietnam Battery Market

Secondary rechargeable batteries accounted for 84.9% of the Vietnam battery market in 2025 and are forecast to grow at an 11.5% CAGR through 2031. Expansion is supported by VinFast's production ramp-up, wider e-motorcycle adoption, 5G infrastructure investment, and the replacement of lead-acid batteries in telecommunications and industrial power-backup systems.

Primary batteries retained a 15.1% market share in 2025, with demand concentrated in remote sensors, medical devices, and low-drain consumer products. Growth remains constrained by the shift toward USB-C charging and energy-harvesting IoT equipment.

Rechargeable battery demand could increase by nearly 8 GWh by 2031, placing greater pressure on domestic manufacturers to secure cathode materials and strengthen supply chains. If localization initiatives progress as planned, the rechargeable segment could exceed USD 1.5 billion by 2031. Government incentives, vertical-integration investments by VinFast and VinES, and new domestic production capacity will remain important growth catalysts, although Vietnam's limited raw-material base presents an ongoing challenge.

Key Topics Covered

1 Introduction

1.1 Study Assumptions & Market Definition

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

4.1 Market Overview

4.2 Market Drivers

4.2.1 Declining lithium-ion cell prices

4.2.2 Surge in EV & e-bike adoption

4.2.3 Government incentives for local manufacturing

4.2.4 Expansion of 5G & data-center back-up demand

4.2.5 VinFast/VinES vertical-integration investments

4.2.6 Supply-chain diversification away from China

4.3 Market Restraints

4.3.1 Reliance on pumped-hydro over BESS

4.3.2 Limited domestic raw-material base

4.3.3 Stricter hazardous-waste regulations

4.3.4 Grid-connection bottlenecks for large ESS

4.4 Supply-Chain Analysis

4.5 Regulatory Landscape

4.6 Technological Outlook

4.7 Porter's Five Forces

4.7.1 Threat of New Entrants

4.7.2 Bargaining Power of Suppliers

4.7.3 Bargaining Power of Buyers

4.7.4 Threat of Substitutes

4.7.5 Competitive Rivalry

4.8 PESTLE Analysis

5 Market Size & Growth Forecasts

5.1 By Battery Type

5.1.1 Primary Batteries

5.1.2 Secondary Batteries

5.2 By Technology

5.2.1 Lead-acid

5.2.2 Li-ion

5.2.3 Nickel-metal hydride

5.2.4 Nickel-cadmium

5.2.5 Sodium-sulfur

5.2.6 Solid-state

5.2.7 Flow Battery

5.2.8 Emerging chemistries

5.3 By Application

5.3.1 Automotive (HEV, PHEV, and EV)

5.3.2 Industrial (Motive, Stationary (Telecom, UPS, ESS), etc.)

5.3.3 Portable (Consumer Electronics, etc.)

5.3.4 Power Tools

5.3.5 SLI

5.3.6 Other Applications

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves (M&A, Partnerships, PPAs)

6.3 Market Share Analysis (Market Rank/Share for key companies)

6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)

6.4.1 GS Battery Vietnam Co. Ltd

6.4.2 PINACO

6.4.3 Vision Group

6.4.4 Leoch International Technology Ltd

6.4.5 Saite Power Source (Vietnam) Co. Ltd

6.4.6 Heng Li (Vietnam) Battery Technology Co. Ltd

6.4.7 Ritar Power (Vietnam) Co. Ltd

6.4.8 Tia Sang Battery JSC

6.4.9 Eni-Florence Vietnam Co. Ltd

6.4.10 Kung Long Batteries Industrial Co. Ltd

6.4.11 VinES Energy Solutions JSC

6.4.12 Panasonic Energy Vietnam

6.4.13 Samsung SDI

6.4.14 BYD Co. Ltd

6.4.15 CATL

6.4.16 Amara Raja Batteries

6.4.17 Power Plus Technologies Vietnam

6.4.18 EnerSys

6.4.19 Exide Industries

6.4.20 Furukawa Battery

7 Market Opportunities & Future Outlook

7.1 White-space & Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/rgd9qj

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