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North America NMC Battery Pack Market Size

The North America NMC Battery Pack Market is poised for significant expansion, driven by the increasing demand for electric vehicles and advancements in battery technology. The market's growth is supported by substantial investments from major automakers and battery manufacturers, aimed at enhancing production capacity and localizing battery pack manufacturing. Technological improvements and economies of scale have led to a reduction in battery costs, making electric vehicles more accessible and accelerating their adoption. Additionally, strategic partnerships are fostering innovation and competitiveness in the market, while efforts to diversify the raw material supply chain are underway to ensure sustainable production. The market's trajectory is further bolstered by supportive governmental policies and initiatives promoting electric vehicle adoption.

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Market Size of north america nmc battery pack Industry

North America NMC Battery Pack Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 7.09 Billion
svg icon Market Size (2029) USD 14.78 Billion
svg icon Largest Share by Propulsion Type BEV
svg icon CAGR (2024 - 2029) 15.83 %
svg icon Largest Share by Country US
svg icon Market Concentration Low

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

Key Players

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North America NMC Battery Pack Market Analysis

The North America NMC Battery Pack Market size is estimated at 7.09 billion USD in 2024, and is expected to reach 14.78 billion USD by 2029, growing at a CAGR of 15.83% during the forecast period (2024-2029).

7.09 Billion

Market Size in 2024 (USD)

14.78 Billion

Market Size in 2029 (USD)

40.28 %

CAGR (2017-2023)

15.83 %

CAGR (2024-2029)

Largest Segment by Body Type

55.72 %

value share, LCV, 2023

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The passenger car is the largest segment with government incentives for the purchase of EVs & increasing awareness about lower emissions and lower operating costs.

Largest Segment by Propulsion Type

93.53 %

value share, BEV, 2023

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BEVs dominate the North America NMC battery pack market, powered solely by electric energy with technology advancements, longer ranges & improved charging infrastructure.

Largest Segment by Battery Form

53.67 %

value share, Cylindrical, 2023

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Cylindrical batteries dominate the North America NCM Battery Pack Market offering compact design, efficient space utilization, enhanced performance & cost-effectiveness.

Leading Market Player

2.36 %

market share, LG Energy Solution Ltd., 2022

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LG Chem Ltd. is the leader in supplying batteries and battery components in North America and also has strong research and development centers in Michigan and Georgia.

Largest Segment by Capacity

72.26 %

value share, 40 kWh to 80 kWh, 2023

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The 40 kWh to 80 kWh battery capacity range dominates the North America NCM battery pack market, offering a balance between driving range and cost-efficiency.

Increasing demand for BEVs is driving growth in the North American NCM battery pack market

  • The rising demand for NCM battery packs is primarily fueled by the surging need for electric vehicles (EVs), which heavily rely on these packs for energy storage. Technological advancements have led to an uptick in battery density, translating to increased EV ranges. In 2015, the average density of NCM battery packs stood at approximately 150 Wh/kg. By 2020, it had surged to 250 Wh/kg, and projections indicate it will hit 350 Wh/kg by 2025. This densification has also driven down the cost per kilowatt-hour (kWh) of energy storage. In 2010, the cost was roughly USD 1,000/kWh, which plummeted to USD 137/kWh by 2020. Forecasts suggest it will further dip to USD 100/kWh by 2025.
  • North America is witnessing a flurry of research and investments in NCM battery pack technology. In 2020, General Motors unveiled a USD 2.2 billion investment for a new Ohio-based battery factory, dedicated to NCM battery pack production for their upcoming EV lineup. Notably, other industry giants like Tesla, Ford, and Rivian are also channeling significant investments into NCM battery pack R&D.
  • The future of NCM battery packs in North America appears bright, propelled by technological strides and the growing EV adoption. This trajectory is poised to fuel substantial market growth, opening up a plethora of opportunities. In North America, the shift toward NCM battery packs is set to persist, with NCM 811 emerging as the dominant battery chemistry by 2026. Furthermore, governmental policies and initiatives aimed at bolstering EV adoption are anticipated to further catalyze the NCM battery market's expansion in North America.
North America NMC Battery Pack Market

Local production and raw material supply drive the expansion of the battery pack industry in the United States

  • The North American market for NMC battery packs was experiencing significant growth and had a promising outlook. The adoption of EVs in North America has been increasing, driven by factors such as government incentives, environmental regulations, and consumer interest in sustainable transportation. This growing demand for EVs is fueling the need for NMC battery packs.
  • Major automakers and battery manufacturers have been investing in expanding their production capacity for NMC battery packs in North America. This includes establishing or expanding manufacturing facilities to meet the rising demand for EVs and localize battery pack production. Furthermore, the availability and cost of raw materials needed for NMC batteries, such as nickel, manganese, and cobalt, can impact the market. Diversification of the raw material supply chain and efforts to reduce reliance on expensive or scarce materials are ongoing to ensure the sustainable production of NMC battery packs.
  • The cost of NMC battery packs has decreased over time due to economies of scale, technological advancements, and optimization of production processes. This cost reduction helps make EVs more affordable and accelerates their market adoption. Partnerships aim to pool resources, share expertise, and drive innovation in NMC battery technology. These collaborations contribute to the continuous improvement and competitiveness of NMC battery packs in the market during 2024-2029.

North America NMC 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. 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.

  • The rising demand for NCM battery packs is primarily fueled by the surging need for electric vehicles (EVs), which heavily rely on these packs for energy storage. Technological advancements have led to an uptick in battery density, translating to increased EV ranges. In 2015, the average density of NCM battery packs stood at approximately 150 Wh/kg. By 2020, it had surged to 250 Wh/kg, and projections indicate it will hit 350 Wh/kg by 2025. This densification has also driven down the cost per kilowatt-hour (kWh) of energy storage. In 2010, the cost was roughly USD 1,000/kWh, which plummeted to USD 137/kWh by 2020. Forecasts suggest it will further dip to USD 100/kWh by 2025.
  • North America is witnessing a flurry of research and investments in NCM battery pack technology. In 2020, General Motors unveiled a USD 2.2 billion investment for a new Ohio-based battery factory, dedicated to NCM battery pack production for their upcoming EV lineup. Notably, other industry giants like Tesla, Ford, and Rivian are also channeling significant investments into NCM battery pack R&D.
  • The future of NCM battery packs in North America appears bright, propelled by technological strides and the growing EV adoption. This trajectory is poised to fuel substantial market growth, opening up a plethora of opportunities. In North America, the shift toward NCM battery packs is set to persist, with NCM 811 emerging as the dominant battery chemistry by 2026. Furthermore, governmental policies and initiatives aimed at bolstering EV adoption are anticipated to further catalyze the NCM battery market's expansion in North America.
Body Type
Bus
LCV
M&HDT
Passenger Car
Propulsion Type
BEV
PHEV
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 NMC Battery Pack Market Size Summary

The North America NMC Battery Pack Market is poised for significant expansion, driven by the increasing adoption of electric vehicles (EVs) and advancements in battery technology. The demand for NMC battery packs is primarily fueled by the need for efficient energy storage solutions in EVs, which are becoming more prevalent due to government incentives, environmental regulations, and consumer interest in sustainable transportation. The market is witnessing substantial investments from major automakers and battery manufacturers, who are expanding production capacities and establishing new facilities to meet the rising demand. This growth is further supported by technological advancements that have improved battery density and reduced costs, making EVs more affordable and accelerating their market adoption.

The market landscape is characterized by the presence of major players such as Tesla, Toyota Group, Ford Group, Hyundai, and Honda, who collectively dominate the EV market in North America. These companies are leveraging strategic partnerships and innovations in NMC battery technology to maintain their competitive edge. The market is also experiencing a shift towards NMC 811 battery chemistry, which is expected to become dominant in the coming years. Additionally, the availability and cost of raw materials like nickel, manganese, and cobalt play a crucial role in the market dynamics, with ongoing efforts to diversify the supply chain and reduce reliance on scarce materials. Overall, the North America NMC Battery Pack Market is set for robust growth, offering numerous opportunities for stakeholders in the industry.

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North America NMC 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 Capacity

      1. 1.3.1 15 kWh to 40 kWh

      2. 1.3.2 40 kWh to 80 kWh

      3. 1.3.3 Above 80 kWh

      4. 1.3.4 Less than 15 kWh

    4. 1.4 Battery Form

      1. 1.4.1 Cylindrical

      2. 1.4.2 Pouch

      3. 1.4.3 Prismatic

    5. 1.5 Method

      1. 1.5.1 Laser

      2. 1.5.2 Wire

    6. 1.6 Component

      1. 1.6.1 Anode

      2. 1.6.2 Cathode

      3. 1.6.3 Electrolyte

      4. 1.6.4 Separator

    7. 1.7 Material Type

      1. 1.7.1 Cobalt

      2. 1.7.2 Lithium

      3. 1.7.3 Manganese

      4. 1.7.4 Natural Graphite

      5. 1.7.5 Nickel

      6. 1.7.6 Other Materials

    8. 1.8 Country

      1. 1.8.1 Canada

      2. 1.8.2 US

North America NMC Battery Pack Market Size FAQs

The North America NMC Battery Pack Market size is expected to reach USD 7.09 billion in 2024 and grow at a CAGR of 15.83% to reach USD 14.78 billion by 2029.

In 2024, the North America NMC Battery Pack Market size is expected to reach USD 7.09 billion.

North America NMC Battery Pack Market Report Snapshots

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