US Battery Cell Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 15.10 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Battery Cell Market Analysis
The United States battery cell market is expected to register a CAGR of more than 15.1% during the forecast period. In 2020, the battery market was negatively impacted by the COVID-19 outbreak, with growth declining as a result of a lockdown that restricted the supply of batteries and other components because of severe disruptions in the global economy and businesses. Positive government policies have contributed to the growth, as well as an increase in investments in renewable energy, this led to an increase in the adoption of energy storage systems, which led to positively contributing to the demand for battery cells, which helps in driving the market growth. However, safety concerns regarding lithium-ion batteries are likely to hamper the market's growth.
- The Automotive batteries segment is expected to dominate the market, owing to the usage increasing EV adoption in the country, owing to the high usage of battery cells is expected to drive the market.
- Over the next decade, automakers are going to invest billions in producing battery cells in the United States to meet the rapidly growing demand for electric vehicles and is expected to create a significant number of opportunities for the market studied.
- Rising renewable energy generation is expected to boost the battery cell market, due to growing renewable generation leads to demand for energy storage systems. Essentially, battery storage systems (BESS) allow renewable energy sources, such as solar and wind, to be stored and used for energy needs.
US Battery Cell Market Trends
This section covers the major market trends shaping the US Battery Cell Market according to our research experts:
Automobile Batteries Segment to Dominate the Market
- The United States is one of the largest electric vehicle (EV) markets in the world. The EV manufacturers in the country are primarily catering to the demand for EVs arising domestically. Hence, growth in EV sales in the country is driving the EV manufacturing sector, in turn, supporting both prismatic and cylindrical battery market growth.
- As of 2021, the number of electric vehicle sales in the United States is 3,15576, an increase of 6.8% over 2,95,399 in 2020.
- The California Energy Commission (CEC) and the California Air Resources Board (CARB) report that EV sales in the United States reached a record number during Q1 2022, with over 208,000 units delivered.
- EV manufacturers in the United States are undertaking further initiatives to cater to the rising demand in the country. Thirteen new battery cell Giga factories are expected to come online in the United States by 2025. All of these Giga factories are being developed by various automobile manufacturers like Ford Motor Company, and General Motors Company, Tesla Inc., among others to support their electric vehicle manufacturing and sales.
- To encourage the sale of EVs, many states in the United States provide attractive incentives to consumers, such as free parking, low or no registration fees, reductions in tolls, and charging stations around the country.
- The state of California, for instance, offers discounts on electric cars with zero emissions and plug-in hybrid electric vehicles (PHEVS). Low-income families can receive an additional USD 2,000 as discount for buying EVs. In addition, New Jersey and Washington exempt electric vehicles from vehicle sales taxes. Similarly, Louisiana and Maryland offer tax credits of up to USD 2,500 and USD 3,000 for each vehicle.
- In October 2021, According to Toyota, the company is going to invest USD 3.4 billion in automotive batteries in the U.S. through 2030, primarily to develop and localize automotive battery production.
- In the automotive sector, the United States is indisputably one of the largest economies in the world. Increasingly viable electric vehicle technology is leading to an electric vehicle revolution in the United States, which is directly linked to the country's electric vehicle battery market. These factors are expected to drive the aumobile battery cell market in the country during the forecast period.
Rising Renewable Energy Generation Leading to Increasing Adoption Battery Energy Storage Systems to Drive the Market
- With increasing investments in renewable energy infrastructure, the United States has seen significant changes in recent years, especially in the residential and commercial sectors.
- The adoption of solar PV systems by the residential, Commercial & Industrial (C&I) sectors is expected to be a major driver in the market studied. One of the major factors driving the adoption of rooftop solar is government initiatives, such as net metering, which is expected to drive the demand for energy storage systems in the future.
- According to the Solar Energy Industries Association of the United States, During Q2 2022, the U.S. installed 4.6 gigawatts (GWdc) of solar PV capacity, reaching 130.9 GWdc of total installed capacity, enough to power 23 million American homes.
- A total of 39% of the new electricity generating capacity added in the U.S. during the first half of 2021 came from solar energy.
- Over the last decade, solar installation costs have decreased by more than 60%, leading the industry to expand into new markets and deploy thousands of systems. In 2010, the average residential system cost USD 40,000, but now it costs between USD 20,000 and USD 30,000, and utility-scale systems cost from USD 16 to USD 35 per MWh, which is competitive with all other forms of electricity generation.
- In the United States, battery-based energy storage projects are currently being developed, which include several battery technologies. Between 2021 and 2024, around 14.5 gigawatts (GW) of battery storage capacity is expected to be online. Around 9.2 GW of this storage capacity is going to be co-located with solar, 1.3 GW with wind energy, and the remaining 4 GW in a stand-alone capacity.
- Therefore, increasing investments in renewable energy and decreasing solar installation costs are expected to drive market growth.
US Battery Cell Industry Overview
The United States battery cell market is moderately fragmented. Some of the key players in the market include BYD Co. Ltd, Contemporary Amperex Technology Co. Limited, Duracell Inc., EnerSys, and Panasonic Corporation.
US Battery Cell Market Leaders
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BYD Co. Ltd
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Contemporary Amperex Technology Co. Limited
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Duracell Inc.
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EnerSys
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Panasonic Corporation
*Disclaimer: Major Players sorted in no particular order
US Battery Cell Market News
- In March 2022, Microvast Holdings, Inc. announced the introduction of two new lithium-ion battery cells to its product portfolio, as well as upgraded Gen 4 battery packs. The new 48Ah and 53.5Ah NMC Li-ion battery cells are new pouch cells that were explicitly designed to meet diverse technical requirements for powering commercial and specialty vehicles. The 48Ah, 53.5Ah cells, and Gen 4 battery packs are available for instant orders. Microvast expects to begin high-volume production in 2023.
- In May 2021, Ford and SK Innovation announced that they have signed a memorandum of understanding (MoU) for a joint venture called BlueOval SK to manufacture battery cells and arrays in the United States. BlueOval SK is expected to produce approximately 60-gigawatt hours (GWh) annually with the potential to expand. With this BlueOval SK MoU, Ford continues to invest in R&D of battery technology and manufacturing, including establishing a new global battery center of excellence and investing in a solid-state battery start-up.
US Battery Cell 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 billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Prismatic
5.1.2 Cylindrical
5.1.3 Pouch
5.2 Application
5.2.1 Automotive
5.2.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.))
5.2.3 Consumer Electronics
5.2.4 Other Applications
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 Duracell Inc.
6.3.4 EnerSys
6.3.5 Panasonic Corporation
6.3.6 ElringKlinger AG
6.3.7 Saft Groupe S.A.
6.3.8 Maxell, Ltd.
6.3.9 Samsung SDI Co. Ltd
6.3.10 GS Yuasa Corporation
6.3.11 LG Energy Solution, Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Battery Cell Industry Segmentation
United States battery cell market report includes:
| Type | |
| Prismatic | |
| Cylindrical | |
| Pouch |
| Application | |
| Automotive | |
| Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)) | |
| Consumer Electronics | |
| Other Applications |
US Battery Cell Market Research FAQs
What is the current United States Battery Cell Market size?
The United States Battery Cell Market is projected to register a CAGR of greater than 15.10% during the forecast period (2024-2029)
Who are the key players in United States Battery Cell Market?
BYD Co. Ltd, Contemporary Amperex Technology Co. Limited, Duracell Inc., EnerSys and Panasonic Corporation are the major companies operating in the United States Battery Cell Market.
What years does this United States Battery Cell Market cover?
The report covers the United States Battery Cell Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Battery Cell Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Battery Cell Industry Report
Statistics for the 2024 United States Battery Cell market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Battery Cell analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
United States Battery Cell Report Snapshots
