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North America EV Battery Pack Market Size

The North America EV Battery Pack Market is experiencing substantial growth, driven by factors such as government incentives, environmental regulations, and advancements in charging infrastructure. The market's expansion is supported by policies that encourage electric vehicle adoption, including tax credits and investments in charging facilities. The establishment of battery manufacturing plants in the region is crucial for reducing reliance on imports and fostering local industry growth. Continued research and development in battery technology, along with the availability of essential materials like lithium, nickel, and cobalt, are expected to further enhance the market's potential.

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Market Size of north america ev battery pack Industry

North America EV Battery Pack Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 12.66 Billion
svg icon Market Size (2029) USD 33.94 Billion
svg icon Largest Share by Propulsion Type BEV
svg icon CAGR (2024 - 2029) 21.80 %
svg icon Largest Share by Country US
svg icon Market Concentration High

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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North America EV Battery Pack Market Analysis

The North America EV Battery Pack Market size is estimated at 12.66 billion USD in 2024, and is expected to reach 33.94 billion USD by 2029, growing at a CAGR of 21.80% during the forecast period (2024-2029).

12.66 Billion

Market Size in 2024 (USD)

33.94 Billion

Market Size in 2029 (USD)

34.72 %

CAGR (2017-2023)

21.80 %

CAGR (2024-2029)

Largest Segment by Body Type

55.70 %

value share, LCV, 2023

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Passenger cars lead the market driven by government incentives and benefits of cars such as increasing awareness, lower emissions & lower operating costs.

Largest Segment by Propulsion Type

99.14 %

value share, BEV, 2023

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BEVs hold the largest segment, powered solely by electric energy with advancements in technology, range, and charging infrastructure.

Largest Segment by Battery Chemistry

37.62 %

value share, NCM, 2023

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NMC batteries dominate the market because of their high safety, long cycle life, and low cost in North America Electric Vehicle Battery Pack Market.

Largest Segment by Battery Form

60.60 %

value share, Cylindrical, 2023

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Cylindrical batteries dominate the North America ECV battery pack market, offering compact design, efficient space utilization, and enhanced performance.

Leading Market Player

45.50 %

market share, LG Energy Solution Ltd., 2022

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LG Energy Solution supplies batteries to major OEMs like Tesla and General Motors, with facilities across North America for manufacturing, R&D, and sales.

Battery manufacturing plants are expected to fuel the growth of the North American electric vehicle industry

  • From 2017 to 2023, there has been a significant increase in the production and adoption of electric vehicles in North America. In 2017, the total number of electric vehicles produced in North America was approximately 200,000, which increased to over 400,000 in 2022. This growth can be attributed to various factors, including government incentives, lower battery prices, and increased consumer awareness. Research and development efforts in the electric vehicle industry have also been increasing in recent years.
  • The electric vehicle battery pack market in North America is experiencing significant growth, largely driven by government subsidies and incentive programs. In recent years, there has been a marked increase in the adoption of electric vehicles due to these programs, which aim to promote the use of environmentally friendly transportation. For instance, the US government has introduced tax credits of up to USD 7,500 for the purchase of electric vehicles, making them more affordable and accessible to a wider audience.
  • Further, the development of battery manufacturing plants is critical to the growth of the EV market in North America. Currently, most EV batteries are manufactured in Asia, primarily in China and South Korea. However, there are plans to build more battery manufacturing plants in North America, which will help to reduce the region's reliance on imported batteries and support the growth of the local EV industry. According to a report by Bloomberg New Energy Finance, North America is expected to invest USD 360 billion in EV infrastructure by 2040 as the region seeks to reduce its carbon emissions and transition to cleaner transportation. Overall, the future of electric vehicles and battery packs in North America is promising.
North America EV Battery Pack Market

Government support and investments driving electric vehicle adoption in the United States and Canada

  • The North American electric vehicle (EV) battery pack market has witnessed robust growth in recent years, with both the United States and Canada seeing a surge in EV adoption. This uptick can be attributed to several factors, including government incentives, tightening emission regulations, growing environmental consciousness among consumers, and advancements in charging infrastructure.
  • At various levels, governments across North America have been rolling out policies and incentives to spur EV adoption. These initiatives encompass tax credits, grants, rebates, and investments in charging infrastructure. Such support has bolstered consumer interest in EVs, thereby driving the demand for battery packs. Notably, major automakers and battery manufacturers are ramping up their production capacities for EV battery packs in the regional market. Tesla, for instance, operates its gigafactory in Nevada, United States, which is solely dedicated to battery production. Other industry giants like General Motors, Ford, and Volkswagen have also unveiled plans to establish their own domestic battery production facilities.
  • Continued R&D endeavors in battery technology are focused on enhancing energy density, cost reduction, and extending the range of EVs. Innovations like solid-state batteries, rapid-charging capabilities, and prolonged battery life are poised to propel the market further. Additionally, the availability of key battery materials is a crucial factor. North America boasts substantial reserves of vital materials like lithium, nickel, and cobalt, which can bolster localized production and supply chain activities over the coming years.

North America EV Battery Pack Industry Segmentation

Bus, LCV, M&HDT, Passenger Car are covered as segments by Body Type. BEV, PHEV are covered as segments by Propulsion Type. LFP, NCA, NCM, NMC, Others are covered as segments by Battery Chemistry. 15 kWh to 40 kWh, 40 kWh to 80 kWh, Above 80 kWh, Less than 15 kWh are covered as segments by Capacity. Cylindrical, Pouch, Prismatic are covered as segments by Battery Form. Laser, Wire are covered as segments by Method. Anode, Cathode, Electrolyte, Separator are covered as segments by Component. Cobalt, Lithium, Manganese, Natural Graphite, Nickel are covered as segments by Material Type. Canada, US are covered as segments by Country.

  • From 2017 to 2023, there has been a significant increase in the production and adoption of electric vehicles in North America. In 2017, the total number of electric vehicles produced in North America was approximately 200,000, which increased to over 400,000 in 2022. This growth can be attributed to various factors, including government incentives, lower battery prices, and increased consumer awareness. Research and development efforts in the electric vehicle industry have also been increasing in recent years.
  • The electric vehicle battery pack market in North America is experiencing significant growth, largely driven by government subsidies and incentive programs. In recent years, there has been a marked increase in the adoption of electric vehicles due to these programs, which aim to promote the use of environmentally friendly transportation. For instance, the US government has introduced tax credits of up to USD 7,500 for the purchase of electric vehicles, making them more affordable and accessible to a wider audience.
  • Further, the development of battery manufacturing plants is critical to the growth of the EV market in North America. Currently, most EV batteries are manufactured in Asia, primarily in China and South Korea. However, there are plans to build more battery manufacturing plants in North America, which will help to reduce the region's reliance on imported batteries and support the growth of the local EV industry. According to a report by Bloomberg New Energy Finance, North America is expected to invest USD 360 billion in EV infrastructure by 2040 as the region seeks to reduce its carbon emissions and transition to cleaner transportation. Overall, the future of electric vehicles and battery packs in North America is promising.
Body Type
Bus
LCV
M&HDT
Passenger Car
Propulsion Type
BEV
PHEV
Battery Chemistry
LFP
NCA
NCM
NMC
Others
Capacity
15 kWh to 40 kWh
40 kWh to 80 kWh
Above 80 kWh
Less than 15 kWh
Battery Form
Cylindrical
Pouch
Prismatic
Method
Laser
Wire
Component
Anode
Cathode
Electrolyte
Separator
Material Type
Cobalt
Lithium
Manganese
Natural Graphite
Nickel
Other Materials
Country
Canada
US
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North America EV Battery Pack Market Size Summary

The North American electric vehicle (EV) battery pack market is experiencing substantial growth, driven by a combination of government incentives, advancements in technology, and increasing consumer awareness. The market is poised for significant expansion as both the United States and Canada ramp up efforts to promote environmentally friendly transportation solutions. Government policies, including tax credits and investments in charging infrastructure, have played a crucial role in boosting EV adoption, thereby increasing the demand for battery packs. Major automakers and battery manufacturers are expanding their production capacities, with companies like Tesla, General Motors, Ford, and Volkswagen establishing domestic battery production facilities. This growth is further supported by ongoing research and development in battery technology, focusing on enhancing energy density, reducing costs, and extending the range of EVs.

The market landscape is characterized by a high level of consolidation, with a few key players dominating the scene. Companies such as Tesla, Toyota Group, Ford Group, Hyundai, and Honda hold significant market shares, driven by their strong brand presence and innovative product offerings. The availability of essential battery materials like lithium, nickel, and cobalt in North America supports localized production and supply chain activities, further bolstering market growth. The North American EV battery pack market is expected to continue its upward trajectory, with substantial investments in infrastructure and manufacturing capabilities anticipated in the coming years. This growth trajectory is aligned with the broader global shift towards cleaner transportation solutions and the reduction of carbon emissions.

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North America EV Battery Pack Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Body Type

      1. 1.1.1 Bus

      2. 1.1.2 LCV

      3. 1.1.3 M&HDT

      4. 1.1.4 Passenger Car

    2. 1.2 Propulsion Type

      1. 1.2.1 BEV

      2. 1.2.2 PHEV

    3. 1.3 Battery Chemistry

      1. 1.3.1 LFP

      2. 1.3.2 NCA

      3. 1.3.3 NCM

      4. 1.3.4 NMC

      5. 1.3.5 Others

    4. 1.4 Capacity

      1. 1.4.1 15 kWh to 40 kWh

      2. 1.4.2 40 kWh to 80 kWh

      3. 1.4.3 Above 80 kWh

      4. 1.4.4 Less than 15 kWh

    5. 1.5 Battery Form

      1. 1.5.1 Cylindrical

      2. 1.5.2 Pouch

      3. 1.5.3 Prismatic

    6. 1.6 Method

      1. 1.6.1 Laser

      2. 1.6.2 Wire

    7. 1.7 Component

      1. 1.7.1 Anode

      2. 1.7.2 Cathode

      3. 1.7.3 Electrolyte

      4. 1.7.4 Separator

    8. 1.8 Material Type

      1. 1.8.1 Cobalt

      2. 1.8.2 Lithium

      3. 1.8.3 Manganese

      4. 1.8.4 Natural Graphite

      5. 1.8.5 Nickel

      6. 1.8.6 Other Materials

    9. 1.9 Country

      1. 1.9.1 Canada

      2. 1.9.2 US

North America EV Battery Pack Market Size FAQs

The North America EV Battery Pack Market size is expected to reach USD 12.66 billion in 2024 and grow at a CAGR of 21.80% to reach USD 33.94 billion by 2029.

In 2024, the North America EV Battery Pack Market size is expected to reach USD 12.66 billion.

North America EV Battery Market Report Snapshots

North America EV Battery Pack Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029