March 14, 2024
Pouch cells under pressure: solid-state holds the key
Currently, prismatic LFP batteries dominate the global market, and cylindrical cells have regained attention due to the emergence of 46-series large-format cylindrical technology. In contrast, pouch batteries—once considered promising—are now struggling for relevance in the power battery segment. With limited trust from automakers and consumers, their installed capacity fell below 1% as of February 2025, effectively losing their foothold in China’s new energy vehicle (NEV) market.
Yet, the pouch cell is not obsolete. As technology advances, pouch batteries have seen rising shipments in consumer electronics and light electric vehicles. They retain strong acceptance in niche markets and are being integrated with next-generation technologies such as solid-state systems. This article offers a comprehensive analysis of the global pouch battery market, covering current status, competition, technology trends, policy factors, and future development paths.
Table of Contents
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Understanding pouch batteries
Lithium batteries can be classified into prismatic, cylindrical, and pouch types based on their packaging format. Pouch batteries, also known as polymer batteries (explore what is lithium polymer battery), are characterized by their use of aluminum plastic laminate (APL) as the outer casing, distinguishing them from traditional steel or aluminum-cased cells. The basic structure of a pouch battery includes a cathode, anode, separator, electrolyte, and the aluminum plastic laminate enclosure. This design offers advantages in terms of safety, weight, energy capacity, and internal resistance.
Market status: Pouch battery applications
Consumer electronics
Consumer electronics remain the most stable application for pouch batteries. Their lightweight aluminum-laminate packaging, high safety, flexible design, and competitive battery energy density align perfectly with the demands of mobile devices. In 2024, global 3C pouch battery shipments reached 66.9 GWh, up 6.9% YoY. This is projected to exceed 70 GWh in 2025. Beyond smartphones and laptops, wearables such as MR/AR headsets—sensitive to weight and size—are emerging as new growth drivers. By 2028, demand is projected to reach 165 GWh with a CAGR of 7.9% (2023–2028). Leading players like ATL are expected to maintain dominance.
Light electric vehicles
Pouch battery vendors are finding space in the small- and mid-capacity market segments, especially in electric two-wheelers, shared e-motorcycles, and exported electric tricycles (find the best motorcycle battery). Global light EV lithium battery shipments are forecasted to hit 50.9 GWh in 2025, a YoY increase of 18.4%. Although cylindrical and prismatic cells dominate, pouch battery makers are exploring sodium-ion soft packs as a lightweight, safe alternative.
Power batteries
Soft packs continue to retreat in the EV power battery domain. With policy shifts deprioritizing ultra-high energy density, prismatic LFP cells have gained ground due to lower cost and high consistency. OEMs such as BYD and Tesla cite concerns over pouch cell safety and durability, with some considering discontinuation. In response, pouch battery firms are pivoting: some are shifting to prismatic LFP or cylindrical designs, while others are developing solid-state pouch solutions targeting energy storage, light EVs, and low-altitude mobility.
Competitive landscape of pouch battery market
China: Scale, Integration, and Emerging Clusters
As the world’s largest battery market, China enjoys scale advantages and a robust supply chain. Giants like CATL, BYD, and EVE Energy dominate through innovation (e.g., CTP and Blade batteries). Pouch production is concentrated in East, South, and Central China, while the West is rising as a new growth engine.
South Korea: Technological Depth, But Shifting Focus
LG Energy Solution and SK On maintain technological advantages and long-standing relationships with Western OEMs. However, faced with falling market share and profitability, they are investing in LFP and large-format cylindrical cells. To meet localization demands, LG has also expanded production in Europe.
Europe & North America: Policy-Driven Localization
Carbon tariffs and new battery regulations are driving regionalized supply chains. Companies such as CATL and LG are establishing production bases in Europe and North America to reduce exposure to tariffs and satisfy sustainability requirements.
Emerging Players: Differentiation through Niche Innovation
Firms like Farasis Energy and Zhongke Yuanben are leveraging specialized technologies (e.g., SPS module-free design, solid-state chemistry) to carve out space in an increasingly crowded market.
Technology pathways: Material diversification and solid-state compatibility
Material Systems: LFP Rising, Solid-State as the Future
While NCM/NCA systems still dominate due to energy density, LFP-based soft packs are gaining ground due to cost and safety. CATL’s Kirin battery and LG’s LFP pouch projects exemplify this trend. Solid-state batteries—with their demand for lightweight, high-stability packaging—are naturally aligned with the pouch format. Companies like Farasis and EVE are investing heavily in this space.
Process Innovations: CTP, Stacking Upgrades, and Localization
CTP integration boosts pack-level energy density and lowers cost. Improvements in stacking processes enhance consistency and efficiency. Additionally, the localization of aluminum-laminate film reduces reliance on imports, though high-end corrosion-resistant variants are still mainly supplied by Japanese and Korean firms.
Policy and geopolitics: Carbon metrics, trade barriers, and localization trends
EU Carbon Tariffs: Forcing Sustainability Upgrades
The EU’s carbon border adjustment mechanism pushes Chinese manufacturers to reduce emissions and shift production closer to European markets.
China’s Domestic Support: Growth Amid Competition
Government incentives aligned with carbon neutrality targets have accelerated NEV deployment, indirectly supporting pouch battery R\&D and manufacturing.
Localization Push: Strategic Expansion by Global Players
Korean firms are building European plants to circumvent tariffs, while Chinese firms are entering North America via joint ventures and IP licensing.
Market size and growth outlook
The global pouch power battery market is expected to reach 222.4 GWh in 2025, with China contributing roughly 88.6 GWh (39.8%). Growth will be driven by:
- Premium EVs: Automakers like Renault and Mercedes-Benz favor pouch cells for their compact design. Penetration could exceed 50% by 2030.
- Next-Gen Consumer Electronics: Flexible devices (e.g., foldables, wearables) demand ultra-thin, high-performance batteries. The market could reach ¥80 billion by 2030.
- Energy Storage: Demand for safe, distributed storage solutions is expected to raise the share of pouch batteries in storage to 35% by 2030.
By 2030, pouch battery energy density could surpass 400 Wh/kg (from 300 Wh/kg in 2024), while costs are projected to fall below ¥0.5/Wh (from ¥0.8/Wh).
Conclusion
The pouch cell segment stands at a crossroads. While losing ground in the mainstream EV sector, it is finding renewed life through consumer electronics, light electric vehicles, and emerging solid-state technologies. Future success hinges on sustained R\&D, manufacturing breakthroughs, and the ability to align with global policy shifts. For companies willing to innovate and adapt, the pouch cell still holds promise in the next-generation battery landscape.
Who we are
TYCORUN is a leading company in the battery swap industry, focusing on the research and development and manufacturing of battery swap stations and lithium-ion batteries. We are committed to providing efficient and sustainable energy solutions for electric two-wheeled vehicles such as electric motorcycles, electric tricycles, and electric scooters (explore battery swapping vs charging station).
With deep industry experience, TYCORUN focuses on serving urban areas with strong demand for electric two-wheeled vehicles, especially in cities with broad market potential in different countries and regions. We continue to increase R&D investment, actively promote the innovation and upgrading of battery technology, and continuously expand the network layout of battery swap stations.
TYCORUN’s battery swap station design is convenient and efficient, and the user experience is excellent. Our lithium-ion batteries are known for their high energy density, long battery life and excellent performance, and are suitable for a variety of electric two-wheeled vehicles. At the same time, we also provide advanced software solutions to help users achieve real-time monitoring and intelligent management of battery status, and comprehensively improve operational efficiency and user satisfaction.
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Willow
Willow is a materials engineer with a Master’s degree in Materials Science and Engineering, specializing in lithium-ion battery materials and energy storage technologies.
Her work focuses on EV battery swapping solutions, battery innovation, and new energy industry trends, aiming to translate research insights into practical applications for sustainable transportation.
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