The battery market is seeing unprecedented interest and investment. This comes from existing battery manufacturers, vehicle makers, chemical companies, energy suppliers and others, with many businesses moving outside their traditional comfort zones. However, amid all the positive announcements, return on investment has so far been slight. Companies, whether new entrants or existing businesses, face significant risks if they are to successfully carve out market positions. In this article Michaël Kolk, Kurt Baes, Adnan Merhaba, Florence Carlot and Kars van der Steen at Arthur D. Little explores the drivers, challenges and likely outcomes in the battery market, providing key lessons to inform future strategies.