United States Electric Vehicle Battery Manufacturing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.36 Billion |
| Market Size (2029) | USD 16.88 Billion |
| CAGR (2024 - 2029) | 31.11 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Electric Vehicle Battery Manufacturing Market Analysis
The United States Electric Vehicle Battery Manufacturing Market size is estimated at USD 4.36 billion in 2024, and is expected to reach USD 16.88 billion by 2029, at a CAGR of 31.11% during the forecast period (2024-2029).
- Over the medium term, investments to enhance electric vehicle battery production capacity, and a decline in the cost of battery raw material, especially lithium-ion, are expected to drive the market in the forecast period.
- On the other hand, the lack of battery raw materials reserves is expected to hamper the market in the future.
- Nevertheless, long-term ambitious targets for electric vehicles in the United States are expected to create a significant opportunity in the forecast period.
United States Electric Vehicle Battery Manufacturing Market Trends
Lithium-ion Battery is Expected to Have a Major Share
- In recent years, the demand for electric vehicles has surged in the United States. These vehicles rely on energy storage systems, primarily batteries, which are crucial for all-electric, plug-in hybrid, and hybrid vehicles.
- Most plug-in hybrids and all-electric vehicles are powered by lithium-ion batteries. The demand for lithium battery materials in plug-in hybrids is rising, driven by the declining prices of lithium-ion battery packs and their advantages, including high energy density, extended cycle life, and efficiency.
- In 2023, lithium-ion battery pack prices dropped by 14% from the previous year, settling at USD139/kWh. Beyond these benefits, ongoing research and development aim to produce even more effective lithium battery materials for electric vehicles.
- Moreover, the United States government is prioritizing the extraction of lithium ores from domestic reserves to streamline the EV battery supply chain. For instance, plans are underway to extract lithium from underground saltwater deposits in Arkansas and convert it into battery-grade material on-site.
- In June 2024, ExxonMobil and SK On, a leading global electric vehicle battery developer, signed a non-binding memorandum of understanding. This sets the stage for a potential multiyear offtake agreement, enabling ExxonMobil to acquire up to 100,000 metric tons of MobilTM Lithium from its first project in Arkansas.
- Additionally, ExxonMobil aims to utilize this lithium to produce approximately 1 million EV batteries each year by 2030, bolstering the U.S. EV supply chain. Given these ambitious targets, the lithium segment in electric vehicle manufacturing is poised for substantial growth.
- Consequently, with declining lithium-ion battery prices and fresh lithium ore discoveries in the United States, the segment is set to command a significant market share.
Supportive Government Policy and Schemes is Expected to Drive the Market
- In recent years, United States electric vehicle (EV) battery manufacturing has surged, due to supportive government policies offering tax incentives, subsidies, grants, and loans. Federal initiatives, such as the Advanced Technology Vehicles Manufacturing (ATVM) loan program, are channeling funds into the development of cutting-edge battery technologies and manufacturing facilities.
- Moreover, the government is not only investing in research and development to enhance battery technology but is also championing domestic production through favorable trade policies. These initiatives are poised to amplify the demand for electric vehicle battery manufacturing.
- For example, in January 2024, the U.S. Department of Energy earmarked USD 131 million for projects aimed at advancing research and development in EV batteries and charging systems. This funding is set to empower the EV ecosystem, helping to reduce technology costs, extend the driving range of battery vehicles, and forge a secure and sustainable domestic battery supply chain.
- With electric vehicle sales on the rise, the government is likely to introduce more policies to further bolster battery manufacturing. The International Energy Agency reported that United States EV car sales reached 1.39 million units in 2023, a notable increase from 0.99 million units in 2022.
- In line with this, the government is pushing for new laws to expand domestic battery manufacturing and processing, aiming to strengthen America's critical supply chains for electric vehicle batteries and facilitate the clean energy transition.
- As a case in point, in November 2023, the U.S. Department of Energy, after the signing of the Bipartisan Infrastructure Law, announced plans to allocate up to USD 3.5 billion from the law to bolster the domestic production of advanced batteries and their materials nationwide.
- Given these incentives and supportive government policies, the market is poised for significant growth.
United States Electric Vehicle Battery Manufacturing Industry Overview
The United States Electric vehicle battery manufacturing market is semi-fragmented. Some of the major players in the market (in no particular order) include BYD Company Ltd, Tesla, Inc., Contemporary Amperex Technology Co. Limited, Duracell Inc., and Panasonic Holdings Corporation.
United States Electric Vehicle Battery Manufacturing Market Leaders
-
BYD Company Ltd
-
Tesla, Inc.
-
Contemporary Amperex Technology Co. Limited
-
Duracell Inc.
-
Panasonic Holdings Corporation
*Disclaimer: Major Players sorted in no particular order
United States Electric Vehicle Battery Manufacturing Market News
- June 2023: GM, an American multinational automotive manufacturing company, unveiled intentions to build a fourth battery plant in collaboration with Samsung SDI. The USD 3.5 billion project is slated for New Carlisle, Ind., and is projected to commence operations in 2026. The plant aims for an annual production capacity exceeding 30 gigawatt-hours.
- May 2023: SK and Hyundai Motor Group greenlit plans for a joint venture in Georgia, signaling SK's deepening involvement in shaping the future of the United States automotive technology. The venture, set to invest USD 5 billion, will establish an EV battery cell plant in Bartow County, Georgia.
- March 2023: LG Energy Solution announced plans to invest around USD 5.5 billion in building a battery manufacturing hub in Queen Creek, Arizona. This hub will comprise two distinct manufacturing units: one dedicated to cylindrical batteries tailored for electric vehicles and the other focused explicitly on lithium-iron phosphate pouch-type batteries designed for energy storage systems.
United States 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 Investments to Enhance the battery production capacity
4.5.1.2 Decline in cost of battery raw materials
4.5.2 Restraints
4.5.2.1 Lack of Raw Material Reserves
4.6 Supply Chain Analysis
4.7 PESTLE ANALYSIS
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
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 GS Yuasa Corporation
6.3.6 SK On Co, Ltd
6.3.7 Hyundai Motor Group
6.3.8 LG Chem Ltd
6.3.9 Tesla, Inc
6.3.10 Panasonic Corporation
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Long-term ambitious targets for electric vehicles
United States Electric Vehicle Battery Manufacturing Industry Segmentation
Electric vehicle (EV) battery manufacturing involves designing, producing, and assembling batteries for EVs. The process starts with sourcing raw materials like lithium, cobalt, and nickel. These materials are then used to create individual battery cells, which are grouped into modules.
The United States electric vehicle battery manufacturing market is segmented by battery type, battery form, vehicle, and propulsion. By battery type, the market is segmented by lithium-ion batteries, lead-acid batteries, nickel metal hydride batteries, and others. By battery form, the market is segmented into prismatic, pouch, and cylindrical. By propulsion, the market is segmented into battery electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles. The report offers the market size in value terms in USD for all the abovementioned segments.
| 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 |
United States Electric Vehicle Battery Manufacturing Market Research Faqs
How big is the United States Electric Vehicle Battery Manufacturing Market?
The United States Electric Vehicle Battery Manufacturing Market size is expected to reach USD 4.36 billion in 2024 and grow at a CAGR of 31.11% to reach USD 16.88 billion by 2029.
What is the current United States Electric Vehicle Battery Manufacturing Market size?
In 2024, the United States Electric Vehicle Battery Manufacturing Market size is expected to reach USD 4.36 billion.
Who are the key players in United States Electric Vehicle Battery Manufacturing Market?
BYD Company Ltd, Tesla, Inc., Contemporary Amperex Technology Co. Limited, Duracell Inc. and Panasonic Holdings Corporation are the major companies operating in the United States Electric Vehicle Battery Manufacturing Market.
What years does this United States Electric Vehicle Battery Manufacturing Market cover, and what was the market size in 2023?
In 2023, the United States Electric Vehicle Battery Manufacturing Market size was estimated at USD 3.00 billion. The report covers the United States Electric Vehicle Battery Manufacturing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Electric Vehicle Battery Manufacturing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Electric Vehicle Battery Manufacturing Industry Report
Statistics for the 2024 United States Electric Vehicle Battery Manufacturing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States 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.
