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Prismatic cells are a type of battery cell in the battery industry that were introduced in the early 1990s. The modern prismatic cell fulfills the demand for thinner sizes and comes wrapped in elegant packages like a box of chewing gum or a small chocolate bar. The prismatic cells make optimal use of space by using the layered approach. Other designs are wound and flattened into a pseudo-prismatic jelly roll. These cells are mostly found in cell phones, tablets, and low-profile laptops ranging from 800 mAh to 4,000 mAh.

Prismatic cells are also available in large formats packaged in welded aluminum housings and deliver capacities of 20-50 Ah. These are primarily used in energy storage systems and for electric powertrains in hybrid and electric vehicles. Hence, the larger size of the prismatic cells makes them bad candidates for smaller devices like e-bikes and cellphones. Lithium prismatic cells are the preferred technology for material handling equipment (MHE), as the technology provides the best ratio of power and energy per volume unit. Therefore, these battery cell types are better suited for energy-intensive applications.

These battery cell types have gained popularity due to their large capacity and prismatic shape, making it easy to connect four cells and create a 12V battery pack, providing improved space utilization and allowing flexible design. It has the highest Ah nominal capacity and kWh energy and a higher overall battery energy density than other cells. These battery cells are not subject to swelling. Such advantages over other battery cell types make it preferable to the end users. However, it can be more expensive to manufacture, less efficient in thermal management, and have a shorter cycle life than the cylindrical design.

In January 2022, South Korean battery major LG Energy Solution Ltd planned to add a prismatic cell type to its lithium-ion battery lineup. The company revealed that it could add the prismatic form to its portfolio to broaden its customer base. The company's local competitors like Samsung SDI and SK On are moving onto prismatic cells with lithium-iron-phosphate (LFP), currently led by China's CATL, as top EV makers Tesla and Volkswagen adopted prismatic type earlier in 2021.

Korean players, both Samsung SDI and SK On, turned attention to rectangular packaging after Volkswagen decided that up to 80% of its electric vehicles would use prismatic batteries by 2030. In July 2022, Volkswagen Group announced the setup of its first battery cell factory in Salzgitter, Germany. It unveiled the prismatic unified cell would be used in up to 80% of its models. The plant is expected to start production by 2025, and the new cell plant, nicknamed SalzGiga, is expected to reach an annual capacity of 40 GWh, enough for about 500,000 electric vehicles.

Hence, due to the above-mentioned factors, the prismatic cell segment is expected to witness significant growth during the forecast period.