US Battery Manufacturing Equipment Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 22.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Battery Manufacturing Equipment Market Analysis
The United States battery manufacturing equipment market is expected to register a CAGR of more than 22% during the forecast period.
- Over the long term, factors like the increasing adoption of renewable energy coupled with battery energy storage projects are expected to drive the market.
- On the other hand, rising competitive pressure and equipment costs are significant restraints hindering the market's growth.
- Nevertheless, the increasing technological advancements in various technologies like higher capacity and low discharge rate is expected to make the manufacturing of battery equipment more feasible and efficient and create enormous opportunities for the battery manufacturing equipment market.
US Battery Manufacturing Equipment Market Trends
This section covers the major market trends shaping the US Battery Manufacturing Equipment Market according to our research experts:
Automotive Segment to Dominate the Market
- The United States has been attempting to reduce its carbon footprint. To fulfill its emissions target, the country has sanctioned several green programs. Furthermore, public awareness and pressure from numerous stakeholders have weighed in to follow the sustainable energy programs, which are predicted to enhance the country's battery manufacturing equipment market.
- Moreover, in recent years the demand for electric vehicles in the United States has grown significantly. According to International Energy Agency, the number of electric vehicles in the United States increased by 53.33 % in 2021 compared to 2020. In 2021 a total of 630,000 units of electric vehicles were sold, compared to 294,000 in 2020. A similar trend is expected to be followed during the forecast period, which indicates the increasing growth of the battery equipment manufacturing market.
- Additionally, as the demand for electric vehicles grows, automakers are developing electric vehicles of various forms and designs for all car categories to increase vehicle sales. This customization in automotive design presents a substantial growth opportunity for battery manufacturing to fulfill automobile manufacturers' expectations.
- Furthermore, in December 2022, General Motors and LG Energy Solution announced that they would spend an additional USD 275 million on their joint venture battery plant in Tennessee to increase production by more than 40%. The joint venture, Ultium Cells LLC, announced that the new investment is in addition to the USD 2.3 billion announced in April 2021 to build the 2.8 million-square-foot facility. Production at the plant is expected to begin in late 2023.
- Hence, the automobile segment is expected to dominate the market in the forecast period due to increased production, technological advancements, and supportive government policies for battery production, which drives the battery equipment manufacturing market.
Increasing Renewable Energy Projects Coupled with Battery Energy Storage System Expected to Drive the Market
- Over the last few years, installed renewable energy capacity and generation have steadily increased across the United States. Since renewable resources such as solar and wind generate power intermittently and at different levels, storing this energy during peak demand is critical. As a result, battery energy storage systems (BESS) are becoming essential to renewable energy projects. The rapid growth of the renewable energy sector is expected to be one of the country's most potent drivers of battery demand.
- Battery energy storage is considered a critical technology in transitioning to a sustainable energy system. The battery energy storage systems regulate voltage and frequency, reduce peak demand charges, integrate renewable sources, and provide a backup power supply. Batteries are crucial in energy storage systems and are responsible for around 60% of the system's total cost. This increase in BESS projects in the country is expected to increase the demands for batteries in the region.
- In 2021, the United States introduced the Federal Sustainability Plan (FSP), which outlines an ambitious path to power Federal facilities with 100 percent carbon pollution-free electricity (CFE), including 50 percent on a 24-hour-a-day, 7-days-a-week (24/7) basis. In order to achieve this ambitious target, the National Renewable Energy Laboratory (NREL), the national laboratory of the Department of Energy, expects a significant increase in solar and wind energy sources.
- According to the U.S. Energy Information Administration, the United States produced 12,317 trillion British thermal units of renewable energy in 2021, representing a 5.5% increase over the previous year.
- According to NREL, wind and solar energy are expected to provide at least 60 to 80% of power generation in the electricity mix by 2035. It is further estimated that the overall electricity generation will increase by three folds in 2035 compared to 2020, including two terawatts of wind and solar energy sources. This increase in renewable energy projects is expected to increase the demand for battery energy storage system which consequently will increase the demand for batteries.
- For instance, in December 2022, Mitsubishi Power Americas announced that they would supply batteries for the development of three battery energy storage systems in the southeast US. The three hybrid projects are being developed by Origis Energy as part of 1.5 GW of operational and contracted assets in the region.
- Therefore, owing to the above points, the increasing penetration of renewable energy coupled with battery energy storage systems is expected to drive the battery manufacturing equipment market in the United States.
US Battery Manufacturing Equipment Industry Overview
The United States battery manufacturing equipment market is moderately fragmented. Some key players in this market (in no particular order) include Xiamen Lith Machine Limited, IPG Photonics Corporation, Durr AG, Hitachi Ltd, and Xiamen Tmax Battery Equipments Limited., among others.
US Battery Manufacturing Equipment Market Leaders
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Xiamen Lith Machine Limited
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Durr AG
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Hitachi Ltd
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Xiamen Tmax Battery Equipments Limited
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IPG Photonics Corporation
*Disclaimer: Major Players sorted in no particular order
US Battery Manufacturing Equipment Market News
- In December 2022, General Motors and LG Energy Solution will spend an additional USD 275 million in their joint venture battery plant in Tennessee to increase production by more than 40%. The joint venture, Ultium Cells LLC, announced that the new investment is in addition to the USD 2.3 billion announced in April 2021 to build the 2.8 million-square-foot facility. Production at the plant is expected to begin in late 2023.
- In November 2022, Hyundai Motor Group and SK On, the lithium-ion battery subsidiary branch of SK Innovation, signed a memorandum of understanding (MOU) for a new EV battery manufacturing facility. The companies aim to begin operations in 2025 and said it is expected to create more than 3,500 new jobs through approximately USD 4-5 billion of investment in Georgia's Bartow County.
US Battery Manufacturing Equipment 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 2028
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 Machine Type
5.1.1 Coating & Dryer
5.1.2 Calendaring
5.1.3 Slitting
5.1.4 Mixing
5.1.5 Electrode Stacking
5.1.6 Assembly & Handling Machines
5.1.7 Formation & Testing Machines
5.2 End User
5.2.1 Automotive
5.2.2 Industrial
5.2.3 Other End Users
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 Xiamen Lith Machine Limited
6.3.2 Xiamen Tmax Battery Equipments Limited
6.3.3 IPG Photonics Corporation
6.3.4 Durr AG
6.3.5 Hitachi Ltd
6.3.6 Schuler AG
6.3.7 Xiamen Acey New Energy Technology Co.,Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Battery Manufacturing Equipment Industry Segmentation
Battery manufacturing equipment covers machines and equipment used in the production of raw materials, as well as the processing and assembly of batteries. Dosing machines, mixing and coating machines, and so on are necessary for raw material processing, whereas assembling process equipment comprises electrode stacking and cutting machines, heat sealing, and liquid injection machines.
The United States battery manufacturing equipment market is segmented by machine type and end-user. By machine type, the market is segmented into coating & dryer, calendaring, slitting, mixing, electrode stacking, assembly & handling machine, and formation & testing machine. By end-user, the market is segmented into automotive, industrial, and other end users. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
| Machine Type | |
| Coating & Dryer | |
| Calendaring | |
| Slitting | |
| Mixing | |
| Electrode Stacking | |
| Assembly & Handling Machines | |
| Formation & Testing Machines |
| End User | |
| Automotive | |
| Industrial | |
| Other End Users |
US Battery Manufacturing Equipment Market Research FAQs
What is the current United States Battery Manufacturing Equipment Market size?
The United States Battery Manufacturing Equipment Market is projected to register a CAGR of greater than 22% during the forecast period (2024-2029)
Who are the key players in United States Battery Manufacturing Equipment Market?
Xiamen Lith Machine Limited, Durr AG, Hitachi Ltd, Xiamen Tmax Battery Equipments Limited and IPG Photonics Corporation are the major companies operating in the United States Battery Manufacturing Equipment Market.
What years does this United States Battery Manufacturing Equipment Market cover?
The report covers the United States Battery Manufacturing Equipment Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Battery Manufacturing Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Battery Manufacturing Equipment Industry Report
Statistics for the 2024 United States Battery Manufacturing Equipment market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. United States Battery Manufacturing Equipment 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 Manufacturing Equipment Report Snapshots
