Secondary Battery CAN Parts Market Summary

Product and Industry Introduction
Secondary battery CAN parts serve as the critical mechanical housing and fundamental safety components that securely enclose the active materials of a rechargeable battery, most notably lithium-ion cells. These highly engineered structural parts are far more than mere containers; they are integral to the overall performance, lifespan, and safety of the battery system. Their primary functions include providing robust mechanical integrity to protect sensitive internal components from physical shock and vibration, maintaining internal pressure, preventing the leakage of highly reactive liquid or gel electrolytes, and dissipating the immense heat generated during rapid charging and discharging cycles. Furthermore, these components are frequently integrated with sophisticated safety mechanisms, such as explosion-proof valves and precision-engineered top caps, which are designed to safely vent gases and prevent catastrophic thermal runaway in the event of internal short circuits or external abuse.
As the global transition toward electrification and renewable energy accelerates, the demand for high-performance secondary battery CAN parts has surged. These components must meet exceptionally stringent manufacturing tolerances, often measured in microns, to ensure absolute zero-defect rates. The slightest imperfection in the CAN part can compromise the hermetic seal of the battery, leading to moisture ingress or electrolyte leakage, which directly causes battery failure. Consequently, the industry is characterized by extremely high technical barriers to entry, requiring advanced precision stamping capabilities, specialized surface treatment technologies, and fully automated, highly sterile manufacturing environments.

Global Market Size and Growth Estimates
Driven by the compounding global demand for electric vehicles (EVs) and grid-scale energy storage systems (ESS), the market for battery structural components is experiencing robust expansion. The global secondary battery CAN parts market size is estimated to be in the range of 4.8 billion USD to 5.5 billion USD in 2026. Looking forward, the market is projected to expand at an estimated Compound Annual Growth Rate (CAGR) ranging between 16.5% and 19.5% from 2026 to 2031. This sustained trajectory of high growth is primarily fueled by the massive global scale-up of battery cell gigafactories, continuous innovations in larger battery form factors, and the accelerated deployment of utility-scale energy storage networks worldwide.

Macroeconomic Industry Context and Market Dynamics
The overarching battery sector serves as the primary engine for the secondary battery CAN parts market. Recent industry data from 2025 illustrates the staggering scale and momentum of this sector. The cumulative production of power and energy storage batteries in 2025 reached an exceptional 1755.6 GWh, representing a cumulative year-over-year growth of 60.1%. Correspondingly, global sales of power and energy storage batteries surged to 1700.5 GWh, marking a growth of 63.6% compared to the previous year.
Within this massive volume, structural shifts in end-user applications are becoming highly evident. Power batteries, primarily utilized in the automotive sector, accounted for a cumulative sales volume of 1200.9 GWh in 2025, representing 70.6% of total sales with a solid year-over-year increase of 51.8%. However, the most transformative growth is currently being witnessed in the energy storage sector. Energy storage battery cumulative sales amounted to 499.6 GWh, constituting 29.4% of total sales, yet demonstrating a phenomenal year-over-year growth rate of 101.3%.
China remains the absolute epicenter of this industrial boom. Industry data for 2025 indicates that China's energy storage lithium battery shipments reached 630 GWh, representing a year-over-year increase of 85%. In the global landscape, China's energy storage battery shipments accounted for more than 90% of the worldwide total in 2025. This massive output directly dictates the consumption volume, technological evolution, and supply chain geography for secondary battery CAN parts globally.

Regional Market Analysis
* Asia-Pacific (APAC)
The APAC region stands as the undisputed titan in both the production and consumption of secondary battery CAN parts. The estimated CAGR for the APAC market from 2026 to 2031 ranges between 13.0% and 17.0%. China single-handedly drives the majority of this volume, supported by its immense domestic EV penetration rate and unparalleled dominance in global energy storage battery shipments. South Korea and Japan also play pivotal roles; Japanese manufacturers are historically renowned for their ultra-high precision in cylindrical CAN parts, while South Korean giants maintain a massive global footprint in both EV and consumer electronics batteries. Furthermore, Taiwan, China contributes significantly to the broader electronics supply chain and the manufacturing of specialized automated inspection equipment used in battery CAN production lines. The region's growth is heavily sustained by the presence of Tier-1 battery cell manufacturers continuously expanding their domestic capacities while simultaneously demanding rigorous cost optimization from their localized supply networks.
* North America
The North American market is currently undergoing a rapid and heavily subsidized industrial renaissance, with an estimated CAGR ranging between 16.0% and 19.0% for the 2026-2031 period. This aggressive growth is fundamentally propelled by federal legislative mandates and industrial policies designed to onshore the EV supply chain and reduce reliance on overseas components. As major automakers and cell manufacturers aggressively build gigafactories across the continent, the demand for localized secondary battery CAN parts has skyrocketed. Suppliers are heavily incentivized to establish stamping and extrusion facilities in close proximity to these new gigafactories to minimize logistics costs and comply with stringent local content requirements.
* Europe
Europe represents a highly lucrative and rapidly organizing market, with an estimated CAGR between 15.0% and 18.0%. The region's stringent environmental regulations, including comprehensive carbon footprint tracking and ambitious internal combustion engine phase-out timelines, are accelerating EV adoption. European automotive OEMs are aggressively partnering with both local battery startups and established Asian cell manufacturers to secure localized supply. Consequently, major Asian secondary battery CAN part manufacturers are rapidly setting up greenfield production facilities in countries like Hungary, Poland, and Germany to serve these gigafactories directly. The European market distinctly emphasizes sustainable manufacturing practices, recycling capabilities, and lower-carbon raw material sourcing.
* South America
The South American market is in an emerging phase, with an estimated CAGR ranging between 8.0% and 11.0%. While the region holds strategic global importance due to its vast reserves of critical raw battery materials, its downstream battery cell manufacturing and component stamping industries remain relatively nascent. Market growth is primarily driven by the gradual increase in commercial EV adoption, particularly in public transit sectors in major metropolitan areas, as well as the initial deployment of utility-scale energy storage systems paired with regional solar and wind projects.
* Middle East and Africa (MEA)
The MEA region is projected to grow at an estimated CAGR of 7.0% to 10.0%. The market dynamics here are highly bifurcated. The Middle East is increasingly investing in massive renewable energy mega-projects, heavily relying on large-scale energy storage solutions to stabilize grids powered by intermittent solar energy. This creates a rising indirect demand for robust, high-capacity energy storage battery enclosures capable of withstanding extreme ambient temperatures. Conversely, the African market remains in the earliest stages of electrification, with long-term potential tied to off-grid energy storage and specialized mobility solutions.

Market Segmentation by Type
* Aluminum CAN Parts
Aluminum structural components overwhelmingly dominate the modern secondary battery market, particularly within the prismatic battery segment and EV applications. The prevailing industry trend is a relentless push toward lightweighting to improve vehicle range and overall system energy density. Aluminum alloys offer an exceptional strength-to-weight ratio, allowing for robust physical protection without adding prohibitive mass to the vehicle chassis. Furthermore, aluminum possesses superior thermal conductivity compared to steel, which is a critical engineering requirement for rapidly dissipating the intense heat generated during the operation of large-capacity energy storage and automotive cells. From a manufacturing perspective, aluminum is highly malleable, making it ideal for the deep-drawing and continuous precision stamping processes required to mass-produce large-format prismatic casings. The trend indicates that as battery cells continue to grow in physical dimensions, aluminum will consolidate its majority share in the structural parts sector.
* Steel CAN Parts
Steel CAN parts, predominantly utilizing specialized nickel-plated steel sheets, maintain a highly secure and specific niche, particularly within the cylindrical battery segment. Steel offers unparalleled structural rigidity, extreme tensile strength, and superior resistance to physical punctures and volumetric expansion. To prevent chemical reactions with the volatile internal battery electrolyte and to eliminate external oxidation (rust), the steel undergoes rigorous nickel plating processes prior to deep drawing. The adoption of steel is highly correlated with standardized cylindrical cell formats (such as the 18650 and 21700). As the industry pushes toward larger cylindrical formats, the extreme mechanical stress exerted on the casing during manufacturing and operation ensures that high-grade nickel-plated steel remains an indispensable material type, prized for its ability to maintain exact dimensional stability under immense internal pressures.

Market Segmentation by Application
* Prismatic Battery Applications
Prismatic batteries currently dictate the highest volume demand for CAN parts globally. This dominance is heavily linked to their extensive adoption in Lithium Iron Phosphate (LFP) battery architectures, which have become the standard for standard-range EVs and the rapidly expanding energy storage sector. Prismatic CAN parts are highly valued for their excellent space utilization and packaging efficiency; their rectangular shape allows them to be densely stacked within a battery pack, minimizing dead space. The current technological trend in this segment is the transition toward larger volumetric sizes and structural integration, such as Cell-to-Pack (CTP) and Cell-to-Chassis (CTC) designs. In these advanced architectures, the prismatic CAN part must assume a greater load-bearing role, acting not just as a cell enclosure but as a fundamental structural element of the vehicle body itself.
* Cylindrical Battery Applications
Cylindrical CAN parts represent the pinnacle of high-speed, automated precision manufacturing. The defining trend in this application is the ongoing industry migration toward larger form factors, explicitly the transition from legacy sizes to massive new standards. Manufacturing these advanced, larger cylindrical CAN parts introduces profound engineering complexities; the deep-drawing process must accommodate significantly thicker walls and deeper cavities without causing micro-tears or compromising the precise thickness uniformity of the casing. Suppliers who can master the high-yield, high-speed production of these next-generation cylindrical CANs command significant market premiums. The cylindrical segment is characterized by highly automated assembly lines that require millions of perfectly identical units, leaving absolutely zero margin for dimensional variance.
* Pouch Battery Applications
While pouch batteries traditionally utilize flexible aluminum-laminated films rather than rigid, hard-shell CAN parts for their primary enclosure, they still represent a vital application segment for secondary structural components. Because the pouch cell itself lacks inherent mechanical rigidity, it requires substantial external structural support to prevent swelling, damage, and thermal propagation. Therefore, the application of structural parts in this segment involves specialized aluminum frames, end plates, and robust modular housings that encapsulate the soft cells. The trend in the pouch sector involves engineering highly customized, lightweight modular framing systems that can provide the necessary compression forces to maintain cell integrity while integrating advanced liquid cooling channels directly into the structural framework.

Value Chain and Supply Chain Structure
* Upstream: Raw Material Extraction and Processing
The upstream segment of the value chain is highly consolidated and heavily reliant on global commodities markets. The primary inputs are high-grade aluminum coils, specialized steel sheets, nickel, and copper. The quality, purity, and metallurgical consistency of these raw materials are absolute prerequisites for downstream manufacturing. Any microscopic impurities or inconsistencies in the alloy composition can lead to catastrophic tearing during the deep-drawing process. Suppliers in this tier are significantly exposed to macroeconomic factors, geopolitical trade shifts, and fluctuating commodity prices on global exchanges, which directly impact the cost structure of the entire value chain.
* Midstream: Precision Component Manufacturing (The CAN Parts Producers)
This is the core value-add segment of the industry, characterized by intensive capital expenditure and advanced engineering capabilities. The manufacturing process involves multiple highly sophisticated steps: progressive die stamping, deep drawing, multi-stage ultrasonic cleaning, precision surface treatments, and laser welding. A critical aspect of this midstream process is the design and fabrication of the tooling and dies themselves; mastering in-house tooling allows manufacturers to iterate rapidly and minimize production downtime. Furthermore, midstream players must integrate highly advanced Automated Optical Inspection (AOI) systems utilizing machine vision to ensure 100% surface and dimensional quality control, as battery cell manufacturers operate on zero-tolerance policies for component defects.
* Downstream: Battery Cell Manufacturing and System Integration
The downstream segment consists of the Tier-1 global battery cell manufacturers, EV automotive OEMs, and large-scale ESS integrators. This tier dictates the technical specifications, dimensional requirements, and safety standards for the entire supply chain. Becoming a qualified supplier for downstream cell makers is an arduous process, often taking years of rigorous auditing, prototype testing, and production line validation. Once integrated into a cell manufacturer's supply chain, CAN part suppliers generally enjoy stable, high-volume contracts, provided they can continuously meet aggressive annual cost-reduction targets and scale their global operations in tandem with the downstream gigafactories.

Key Market Players Overview
The global secondary battery CAN parts market is highly competitive, dominated by specialized precision engineering firms with deep ties to major battery cell manufacturers.
* Shenzhen Kedali Industry Co. Ltd
As a premier global supplier of precision structural parts for lithium batteries, Shenzhen Kedali operates at the absolute forefront of the industry. The company maintains an extensive global manufacturing footprint, strategically positioning its facilities adjacent to major cell manufacturers. Reflecting its massive scale and market dominance, Shenzhen Kedali's revenue for lithium battery structural parts reached 1.6 Billion USD in 2024. The company is particularly dominant in the supply of aluminum prismatic enclosures and advanced safety cap assemblies.
* Sangsin EDP Co. Ltd
Sangsin EDP is a prominent South Korean enterprise known for its profound engineering expertise in deep drawing and precision stamping. The company serves as a crucial strategic partner to major domestic cell manufacturers and has successfully expanded its footprint globally to support the localization efforts of its core clients. Their product portfolio spans highly reliable cylindrical CANs and complex prismatic casings.
* Fuji Spring Co. Ltd
Representing Japanese precision engineering, Fuji Spring focuses on high-tolerance, exceptionally consistent battery structural components. Leveraging decades of experience in specialized metal forming and progressive stamping, the company caters to Tier-1 cell makers who demand virtually non-existent defect rates, particularly in the highly automated cylindrical battery segment.
* Shinheung SEC Co. Ltd
Another powerhouse from the South Korean supply chain, Shinheung SEC specializes in sophisticated battery components including safety cap assemblies and structural CANs. The company has invested heavily in highly automated production lines and advanced tooling design, ensuring it can meet the rapidly escalating volume requirements of the global EV and energy storage markets.
* Emerging and High-Growth Innovators
Companies such as Wuxi Jinyang New Energy Technology Co. Ltd, Changzhou Zhongrui Electronic Technology Co. Ltd, Ningbo Zhenyu Technology Co. Ltd, and Shanghai Jinyang Metal Surface Treatment Co. Ltd represent a highly dynamic group of manufacturers. These enterprises are capitalizing on the explosive domestic demand within their home market, specifically the monumental growth in the energy storage sector. They are characterized by their rapid capacity expansion, agility in adopting new manufacturing technologies, and increasing competitiveness in the global export market. Shanghai Jinyang Metal Surface Treatment, for instance, highlights the critical importance of specialized surface processing—such as advanced cleaning and anti-corrosion treatments—required to ensure the long-term reliability of battery enclosures.

Market Opportunities
* The Explosive Growth of Energy Storage Systems (ESS)
The most profound immediate opportunity within the market lies in the unprecedented expansion of the global energy storage sector. With global sales growth exceeding 100% annually, driven by grid-scale renewable integration, the demand for large-format prismatic battery CAN parts has surged dramatically. Manufacturers that can optimize their production lines for the specific form factors heavily favored by the ESS industry stand to capture massive, long-term volume contracts.
* Transition to Next-Generation Cell Form Factors
The structural shift towards larger battery cells—both in advanced cylindrical designs and massive prismatic blocks—presents a lucrative avenue for high-margin growth. Manufacturing these larger CAN parts requires entirely new die designs, higher-tonnage stamping presses, and advanced metallurgical handling. Suppliers who can pioneer and commercialize these complex deep-drawing techniques ahead of the competition will command significant pricing power and secure exclusive supply agreements with leading automotive OEMs.
* Global Supply Chain Localization
The era of centralized battery manufacturing is ending, replaced by a mandate for regionalized production. Legislative frameworks in North America and Europe heavily subsidize localized manufacturing. This creates a massive opportunity for established CAN part manufacturers to expand their operations internationally, establishing greenfield stamping facilities in new geographies, thereby capturing localized market share and circumventing cross-border logistics costs and tariffs.

Market Challenges
* Relentless Margin Compression and Price Wars
The secondary battery CAN parts market is characterized by intense price competition. As downstream EV manufacturers face global pricing pressures and strive to achieve price parity with internal combustion engine vehicles, they aggressively force cost-reduction targets upstream onto battery makers, who in turn squeeze the structural component suppliers. CAN part manufacturers must continuously innovate their manufacturing processes to maintain profitability in an environment where unit prices are perpetually negotiated downward.
* High Capital Expenditure and Qualification Barriers
Scaling operations to meet gigafactory demand requires immense capital investment in heavy machinery, cleanrooms, and automated inspection systems. Furthermore, the qualification period to become an approved automotive supplier is notoriously lengthy and expensive. This extended period between initial capital deployment and eventual revenue generation strains the financial flexibility of smaller market participants and poses a significant barrier to entry.
* Raw Material Volatility and Geopolitical Trade Friction
Because raw materials such as aluminum and specialized steel constitute a massive portion of the overall cost structure, CAN part suppliers are highly vulnerable to commodity price shocks. Furthermore, the global battery supply chain is increasingly subject to geopolitical tensions, resulting in unpredictable tariffs, export restrictions, and stringent local-content mandates. Navigating these complex global trade dynamics while securing stable, cost-effective raw material pipelines remains an ongoing and critical challenge for all major industry players.