North America Electric Vehicle Battery Manufacturing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.40 Billion |
| Market Size (2029) | USD 17 Billion |
| CAGR (2024 - 2029) | 31.02 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Electric Vehicle Battery Manufacturing Market Analysis
The North America Electric Vehicle Battery Manufacturing Market size is estimated at USD 4.40 billion in 2024, and is expected to reach USD 17 billion by 2029, at a CAGR of 31.02% during the forecast period (2024-2029).
- In the coming years, the North American electric vehicle battery manufacturing market is poised to be significantly driven by the region's increasing adoption of electric vehicles, bolstered by supportive government policies and regulations.
- However, competition looms from established battery markets in the Asia Pacific, presenting a challenge to North America's electric vehicle battery manufacturing landscape.
- Yet, as North American countries push for localized battery manufacturing supply chains, they unveil a plethora of opportunities for the market's growth.
- With the United States government's intensified efforts to bolster battery manufacturing and the surging adoption of electric vehicles, the United States is set to lead the market and is projected to witness the most substantial growth.
North America Electric Vehicle Battery Manufacturing Market Trends
Battery Electric Vehicle to Witness Significant Growth
- Driven by technological advancements, regulatory backing, and evolving consumer preferences, the North American market for electric vehicle batteries is witnessing a robust surge, particularly in the battery electric vehicles (BEV) segment. BEVs, which operate exclusively on battery-powered electric powertrains, play a pivotal role in the global shift towards sustainable transportation.
- In North America, as automakers and policymakers commit to ambitious greenhouse gas emission reductions, the BEV segment is set for growth. The push to curb carbon footprints and adhere to strict emission standards is propelling the production and uptake of BEVs, which stand out by having no tailpipe emissions, unlike their hybrid counterparts.
- Electric vehicle sales, as reported by the International Energy Agency, have seen a meteoric rise since 2021, more than doubling to 727,730 units. The momentum continued with 1,117,719 units sold in 2022, and a leap to 1,584,113 units in 2023. This sales boom is closely linked to the surging demand for lithium-ion batteries, the mainstay power source for these vehicles.
- North America's burgeoning battery manufacturing capacity is crucial for the BEV segment's success. Given the geopolitical and logistical hurdles of depending on imported battery components and raw materials, the establishment of strong domestic supply chains takes on heightened significance. In response, the North American market is witnessing a flurry of investments, with several companies setting up 'gigafactories' across the region.
- As a case in point, Honda Motor is channeling a hefty USD 11 billion into bolstering its electric vehicle and battery production footprint in Ontario, Canada, with plans to commence operations by 2028. This ambitious endeavor, Honda's largest Canadian investment to date, aims for an annual output of 240,000 electric vehicles and 36 gigawatt-hours of batteries.
- These strategically located facilities, often near automotive manufacturing centers, are pivotal for achieving economies of scale, curbing production costs, and broadening the accessibility of BEVs to consumers. Their proximity to automotive hubs ensures a fluid supply chain and supports just-in-time production.
- Given these dynamics, the battery-electric vehicle segment is on track for substantial growth in the coming years.
United States to Dominate the Market
- The United States is a pivotal player in the North American electric vehicle battery manufacturing market, characterized by dynamic technological innovation, policy support, and strategic investments. The market for electric vehicle batteries is rapidly expanding, driven by a national imperative to transition to a more sustainable transportation ecosystem. Substantial government incentives aimed at both consumers and manufacturers support this shift.
- Federal policies, such as tax credits for electric vehicle purchases and substantial funding for research and development, are designed to spur innovation and increase the adoption of electric vehicles. Furthermore, recent legislation, such as the Inflation Reduction Act, includes significant provisions to promote the domestic production of electric vehicle batteries, providing financial incentives for companies to establish manufacturing facilities within the country.
- For instance, according to the United States Environmental Defense Fund, in 2023, the combined announced capacity of upcoming battery production facilities totaled about 131 GWh. Projections indicate this figure will surge, potentially hitting 738 GWh by 2025, translating to an annual growth rate exceeding 154%. This expansion significantly impacts the Electric Vehicle Battery Manufacturing Market, enabling it to meet the increasing demand for electric vehicles.
- Technological innovation is at the core of the United States electric vehicle battery manufacturing market. American companies and research institutions are at the forefront of developing next-generation battery technologies, including solid-state batteries, which promise significant improvements in energy density, safety, and lifecycle.
- For instance, in March 2023, the Argonne National Laboratory, under the United States Department of Energy, pioneered a lithium-air battery. This innovation holds the promise of substantially extending the range of electric vehicles. The battery's potential applications are vast, from powering cars and domestic airplanes to facilitating long-haul truck operations. Notably, this design addresses a critical safety concern prevalent in traditional batteries, as it eliminates the risk of overheating and fire associated with liquid electrolytes.
- A growing network of charging infrastructure supports the expansion of the electric vehicle battery manufacturing market in the United States. Significant investments are being made to develop a comprehensive network of charging stations across the country, including fast-charging options along major transportation corridors and in urban areas. Additionally, innovations in charging technology, such as wireless and ultra-fast charging, are being explored to improve the user experience further and support the growing number of electric vehicles on the road.
- Therefore, as mentioned above, the United States is expected to be the dominant region in the market during the forecast period.
North America Electric Vehicle Battery Manufacturing Industry Overview
The North America Electric Vehicle Battery Manufacturing Market is semi-fragmented. Some of the key players in this market (in no particular order) are BYD Co. Ltd, Contemporary Amperex Technology Co. Limited, American Battery Solutions, Inc., EnerSys, and Clarios.
North America Electric Vehicle Battery Manufacturing Market Leaders
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BYD Co. Ltd
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Contemporary Amperex Technology Co. Limited
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American Battery Solutions, Inc.
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EnerSys
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Clarios
*Disclaimer: Major Players sorted in no particular order
North America Electric Vehicle Battery Manufacturing Market News
- July 2024: BMW announced plans to take the lead in Mexico's electric vehicle manufacturing sector with a significant move: constructing a battery module production center at its San Luis Potosi plant. This endeavor, backed by an investment of USD 860 million, is slated to kick off operations by 2027. The San Luis Potosi facility will play a pivotal role in the global production network for BMW's upcoming sixth-generation e-drive.
- October 2023: Toyota Motor Corporation announced an additional USD 8 billion investment in its North Carolina electric vehicle battery manufacturing plant. This move is part of Toyota's accelerated efforts to electrify its vehicle lineup. With ambitions to offer electrified options for all its models by 2025, this new investment brings Toyota's total commitment to the North Carolina plant to approximately USD 13.9 billion.
North America Electric Vehicle Battery Manufacturing Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Increasing Adoption of Electric Vehicles
4.5.1.2 Supportive Government Regulations and Policies
4.5.2 Restraints
4.5.2.1 Competition From Established Markets
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Investment Analysis
5. MARKET SEGMENTATION
5.1 Battery
5.1.1 Lithium-ion
5.1.2 Lead-Acid
5.1.3 Nickel Metal Hydride Battery
5.1.4 Others
5.2 Battery Form
5.2.1 Prismatic
5.2.2 Pouch
5.2.3 Cylindrical
5.3 Vehicle
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
5.3.3 Others
5.4 Propulsion
5.4.1 Battery Electric Vehicle
5.4.2 Hybrid Electric Vehicle
5.4.3 Plug-in Hybrid Electric Vehicle
5.5 Geography
5.5.1 United States
5.5.2 Canada
5.5.3 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BYD Co. Ltd
6.3.2 Contemporary Amperex Technology Co. Limited
6.3.3 American Battery Solutions, Inc.
6.3.4 EnerSys
6.3.5 GS Yuasa Corporation
6.3.6 LG Chem Ltd
6.3.7 Exide Industries
6.3.8 Panasonic Corporation
6.3.9 Sionic Energy
6.3.10 Clarios LLC
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Localization of Supply Chains
North America Electric Vehicle Battery Manufacturing Industry Segmentation
Electric vehicle battery manufacturing is the process of producing batteries specifically designed to power electric vehicles (EVs). This involves several stages, including the extraction and processing of raw materials such as lithium, cobalt, nickel, and graphite, which are essential components of lithium-ion batteries commonly used in electric vehicles. The manufacturing process includes cell fabrication, where these materials are assembled into battery cells and then into modules and packs, which are designed to store and deliver energy efficiently to power electric motors. The manufacturing process also involves stringent quality control and testing to ensure the safety, performance, and longevity of the batteries.
The North America Electric Vehicle Battery Manufacturing Market is segmented by Battery, Battery Form, Vehicle, Propulsion, and Geography. The battery market is segmented into lithium-ion, lead-acid, nickel metal hydride batteries, and others. By battery form, the market is segmented into prismatic, pouch, and cylindrical. By vehicle, the market is segmented into passenger cars, commercial vehicles, and others. By propulsion, the market is segmented into battery electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles. The report also covers the size and forecasts for the Electric Vehicle Battery Manufacturing Market across major regions. The market sizing and forecasts have been done for each segment based on revenue (USD).
| Battery | |
| Lithium-ion | |
| Lead-Acid | |
| Nickel Metal Hydride Battery | |
| Others |
| Battery Form | |
| Prismatic | |
| Pouch | |
| Cylindrical |
| Vehicle | |
| Passenger Cars | |
| Commercial Vehicles | |
| Others |
| Propulsion | |
| Battery Electric Vehicle | |
| Hybrid Electric Vehicle | |
| Plug-in Hybrid Electric Vehicle |
| Geography | |
| United States | |
| Canada | |
| Rest of North America |
North America Electric Vehicle Battery Manufacturing Market Research Faqs
How big is the North America Electric Vehicle Battery Manufacturing Market?
The North America Electric Vehicle Battery Manufacturing Market size is expected to reach USD 4.40 billion in 2024 and grow at a CAGR of 31.02% to reach USD 17 billion by 2029.
What is the current North America Electric Vehicle Battery Manufacturing Market size?
In 2024, the North America Electric Vehicle Battery Manufacturing Market size is expected to reach USD 4.40 billion.
Who are the key players in North America Electric Vehicle Battery Manufacturing Market?
BYD Co. Ltd, Contemporary Amperex Technology Co. Limited, American Battery Solutions, Inc., EnerSys and Clarios are the major companies operating in the North America Electric Vehicle Battery Manufacturing Market.
What years does this North America Electric Vehicle Battery Manufacturing Market cover, and what was the market size in 2023?
In 2023, the North America Electric Vehicle Battery Manufacturing Market size was estimated at USD 3.04 billion. The report covers the North America Electric Vehicle Battery Manufacturing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Electric Vehicle Battery Manufacturing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Electric Vehicle Battery Manufacturing Industry Report
Statistics for the 2024 North America Electric Vehicle Battery Manufacturing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Electric Vehicle Battery Manufacturing analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
