South and Central America Battery Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

South and Central America Battery Market Trends

Increasing Demand from Data Centers

The rapid expansion of data center infrastructure across South and Central America is creating substantial demand for battery solutions, as these facilities require uninterrupted power supply to maintain continuous operations. Data centers have shown impressive expansion in the region's developed countries as more enterprises invest in new data storage and deployment facilities. The criticality of maintaining continuous operations is highlighted by the fact that the cost of downtime at a typical data center amounts to approximately USD 9,000 per minute, making reliable UPS battery backup systems essential. This has led to significant investments in battery technologies, particularly for uninterruptible power supply (UPS) systems that serve as the backbone of data center power infrastructure.

Recent developments underscore this growing demand, with several major projects announced in 2023-2024. For instance, in August 2023, Brazilian firm Zeittec announced the construction of a data center facility for the Paraná Court of Auditors, incorporating a Huawei FM500 modular data center with backup systems. Additionally, in June 2023, Brazilian colocation provider Ascenty acquired 47,000 sqm of land in Osasco, Greater São Paulo, for future data center developments. According to IDC, IT spending in Latin America is expected to outpace GDP growth, with a projected increase of 12.6% in 2023 and rising to over 15% by 2026. This growth trajectory is further supported by the fact that despite political uncertainty, approximately one-third of businesses in the region plan to maintain current investment levels in digital infrastructure, while around 23.5% are accelerating their investments, directly driving the demand for reliable industrial battery backup solutions.

Segment Analysis: Type

Secondary Battery Segment in South and Central America Battery Market

The secondary battery segment dominates the South and Central America battery market, holding approximately 85% market share in 2024, equivalent to USD 4.76 billion. This significant market position is driven by the increasing adoption of electric vehicles, renewable energy storage systems, and industrial applications across the region. The segment's growth is particularly notable in countries like Brazil, where major investments in battery manufacturing facilities are being made. For instance, in January 2024, General Motors Co. announced its intention to invest USD 1.4 billion over the next five years to ramp up electric vehicle production in Brazil, which will significantly impact the secondary battery market. Additionally, the segment is experiencing robust growth with a projected CAGR of approximately 10% from 2024 to 2029, driven by expanding applications in grid storage, telecommunications, and consumer electronics sectors.

Primary Battery Segment in South and Central America Battery Market

The primary battery segment maintains a vital role in the South and Central America battery market, serving essential applications in portable electronics, medical devices, and various consumer products. The segment's steady presence is supported by the increasing consumption of smartphones and other portable devices across the region. According to recent market data, the demand for primary batteries is particularly strong in countries like Brazil and Argentina, where the growing IT sector and rising disposable incomes are driving the adoption of consumer electronics. The segment's resilience is further reinforced by its indispensable role in critical applications such as medical devices, remote controls, and emergency equipment, where reliable, single-use power sources are essential.

Segment Analysis: Battery Technology

Lithium-ion Battery Segment in South and Central America Battery Market

The lithium-ion battery segment dominates the South and Central America battery market, holding approximately 48% market share in 2024. This significant market position is driven by the increasing adoption of electric vehicles and renewable energy storage systems across the region. The segment's growth is particularly notable in countries like Brazil, Argentina, and Chile, which possess substantial lithium reserves and are developing their battery manufacturing capabilities. Major investments in lithium-ion battery production facilities, such as BYD's manufacturing plant in Brazil and Argentina's initiatives to establish domestic battery cell production, are further strengthening this segment's market position. The segment's dominance is also supported by the declining costs of lithium-ion batteries and their superior performance characteristics, including higher energy density, longer lifecycle, and improved efficiency compared to other battery technologies.

Lead Acid Battery Segment in South and Central America Battery Market

The lead acid battery segment maintains a significant presence in the South and Central America battery market, particularly in automotive and industrial applications. This segment's steady growth is driven by its cost-effectiveness, established recycling infrastructure, and reliability in traditional applications. The technology continues to be the preferred choice for conventional vehicles, uninterruptible power supply (UPS) systems, and backup power applications across the region. In the automotive sector, lead acid batteries remain dominant in the starting, lighting, and ignition (SLI) applications, while in the industrial sector, they are widely used in telecommunications, data centers, and emergency power systems.

Remaining Segments in Battery Technology

Other battery technologies in the South and Central America market include nickel-metal hydride (NiMH), nickel-cadmium (NiCd), and emerging technologies like sodium-ion batteries. These technologies serve specific niche applications where their unique characteristics provide advantages over lithium-ion or lead-acid batteries. For instance, nickel-based batteries are preferred in certain industrial applications requiring robust performance in extreme conditions, while sodium-ion batteries are gaining attention as a potential alternative to lithium-ion batteries due to the abundance of sodium resources and potentially lower production costs.

Segment Analysis: Application

Automotive Batteries Segment in South and Central America Battery Market

The automotive battery segment dominates the South and Central America battery market, holding approximately 35% market share in 2024. This significant market position is driven by the increasing adoption of electric vehicles across the region, particularly in countries like Brazil, Argentina, and Colombia. The segment's growth is further supported by substantial investments from major automotive manufacturers in the region. For instance, in January 2024, General Motors Co. announced plans to invest USD 1.4 billion in Brazil over the next five years to boost electric vehicle production. Similarly, BYD's planned investment of USD 600 million in Bahia, Brazil, for manufacturing electric and hybrid vehicles demonstrates the strong momentum in this segment. The automotive battery segment encompasses various applications including hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV), with lithium-ion batteries being the predominant technology choice.

Portable Batteries Segment in South and Central America Battery Market

The portable battery segment is emerging as the fastest-growing segment in the South and Central America battery market for the period 2024-2029. This rapid growth is primarily driven by the increasing adoption of consumer electronics, including smartphones, laptops, and wearable devices across the region. According to the Ericsson Mobility Report, smartphone adoption in Latin America is expected to reach 93% by 2030, indicating a strong growth trajectory for portable batteries. The segment's expansion is further supported by technological advancements in battery chemistry and design, leading to improved energy density and longer battery life. The rise in remote working and digital connectivity needs has also contributed to increased demand for portable electronic devices, consequently driving the growth of portable batteries. Additionally, the emergence of new applications in healthcare devices and IoT gadgets is creating additional demand streams for portable batteries in the region.

Remaining Segments in Application

The industrial batteries and other applications segments also play crucial roles in the South and Central America battery market. Industrial batteries serve various critical applications including motive power for forklifts and material handling equipment, stationary power for telecom towers and UPS systems, and energy storage systems for renewable energy integration. The segment is particularly important for supporting the region's growing telecommunications infrastructure and data center operations. The other applications segment encompasses specialized uses such as medical devices, power tools, and military applications, contributing to the market's diversity. These segments benefit from the ongoing industrial digitalization and automation trends across South and Central America, as well as the increasing focus on renewable energy integration and grid stability solutions.

South and Central America Battery Market Geography Segment Analysis

Battery Market in Brazil

Brazil dominates the South and Central American battery market, commanding approximately 41% of the total market share in 2024. The country's battery market is experiencing significant transformation driven by substantial investments in electric vehicle manufacturing and battery production facilities. Major automotive manufacturers are establishing production facilities, with companies like General Motors announcing a USD 1.4 billion investment for EV production in January 2024. The country is also witnessing remarkable developments in energy storage battery systems, exemplified by the connection of the nation's first large-scale battery to the electrical grid at a substation in São Paulo. Furthermore, Brazil's rich lithium reserves in regions like Vale do Jequitinhonha are attracting significant investments, with companies like Sigma Lithium actively engaging in extraction and processing operations. The country's commitment to sustainable energy solutions is evident through various initiatives, including WEG's expansion of lithium battery pack manufacturing capacity and the introduction of residential battery energy storage solutions by companies like Intelbras.

Battery Market in Colombia

Colombia's battery market is projected to demonstrate remarkable growth, with an expected CAGR of approximately 11% during 2024-2029. The country's battery sector is undergoing rapid transformation, particularly driven by the increasing adoption of electric vehicles and renewable energy integration. BYD has established itself as the leading brand in electric vehicle sales, with the country recording 3,718 registrations of zero-emission vehicles in 2023. The nation's commitment to renewable energy is evident through its participation in the regional target of achieving 70% renewable energy usage by 2030, with Colombia specifically aiming to contribute 4 GW to its energy mix. This commitment is further reinforced by significant investments in solar projects, such as Atlas Renewable Energy's acquisition of the Shangri-La project in Tolima. The country's consumer electronics sector is also driving battery demand, particularly with the planned 5G cellular data services auction and increasing mobile phone penetration rates. Additionally, the government's initiatives to enhance connectivity and digital infrastructure are creating new opportunities for battery applications across various sectors.

Battery Market in Argentina

Argentina's battery market is experiencing significant transformation, primarily driven by its position as the world's fourth-largest lithium producer. The country has attracted substantial investments in lithium production, with the government actively promoting domestic battery manufacturing capabilities. Recent developments include the establishment of strategic partnerships, such as the agreement between Khanij Bidesh India Limited and Catamarca Minera y Energética Sociedad del Estado for lithium exploration and mining projects. The nation's commitment to electric mobility is evident through various initiatives, including the implementation of policies and incentives to promote electric vehicle adoption. Argentina's renewable energy sector is also driving battery demand, with the country preparing to initiate expressions of interest for energy storage battery systems to achieve its renewable energy targets. The integration of battery storage solutions is becoming increasingly crucial as Argentina works towards modernizing its electricity grid and enhancing grid reliability.

Battery Market in Chile

Chile's battery market is witnessing substantial growth, driven by the country's ambitious environmental goals and strong focus on renewable energy integration. The nation has implemented progressive policies, including legislation mandating all vehicles sold after 2035 to be electric. The country's renewable energy sector is experiencing remarkable expansion, with significant investments in solar and wind power projects integrated with battery storage systems. Companies like Grenergy and RWE AG are making substantial investments in battery energy storage systems, demonstrating confidence in the market's potential. Chile's commitment to sustainable transportation is evident through various initiatives promoting electric vehicle adoption, supported by a growing network of charging infrastructure. The country is also attracting investments in lithium production and processing facilities, with companies like Tsingshan planning significant investments in lithium iron phosphate production plants.

Battery Market in Other Countries

The battery market in other South and Central American countries, including Peru, Ecuador, Bolivia, Paraguay, Venezuela, and various Central American nations, is showing promising development trajectories. These markets are characterized by increasing investments in renewable energy infrastructure and growing adoption of electric vehicles. Peru, for instance, is making significant strides in renewable energy integration and electric mobility, while Costa Rica is focusing on expanding its clean energy capacity. El Salvador has witnessed remarkable growth in solar power generation, while Ecuador is actively promoting electric vehicle adoption through strategic partnerships with global manufacturers. These countries are implementing various initiatives to modernize their energy infrastructure, enhance grid reliability, and promote sustainable transportation solutions. The growing focus on energy storage battery solutions, coupled with supportive government policies and increasing private sector investments, is creating favorable conditions for market expansion across these regions.