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US EV Battery Pack Market Size

The US EV Battery Pack Market is experiencing significant growth, driven by the increasing adoption of electric vehicles and substantial investments from major automakers in research and development to enhance EV performance and efficiency. Advances in battery technology have led to improved range and faster charging, prompting battery manufacturers to expand their production capacities to meet rising demand. The US government's proactive measures, including incentives for EV buyers and funding for battery infrastructure, are further supporting market expansion. Despite the current reliance on imported battery packs, there is a shift towards domestic manufacturing, with notable facilities established by key players. The market is poised for robust growth, reflecting the ambitious targets set by the Biden administration for electric vehicle sales.

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Market Size of us ev battery pack Industry

US EV Battery Pack Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 12.2 Billion
svg icon Market Size (2029) USD 29.95 Billion
svg icon Largest Share by Propulsion Type BEV
svg icon CAGR (2024 - 2029) 19.67 %
svg icon Fastest Growing by Propulsion Type PHEV

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

Key Players

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US EV Battery Pack Market Analysis

The US EV Battery Pack Market size is estimated at 12.2 billion USD in 2024, and is expected to reach 29.95 billion USD by 2029, growing at a CAGR of 19.67% during the forecast period (2024-2029).

12.2 Billion

Market Size in 2024 (USD)

29.95 Billion

Market Size in 2029 (USD)

34.52 %

CAGR (2017-2023)

19.67 %

CAGR (2024-2029)

Largest Segment by Body Type

56.12 %

value share, LCV, 2023

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Passenger cars dominate the US EV battery pack market, driven by government incentives and increasing awareness of their environmental and cost benefits.

Largest Segment by Propulsion Type

99.18 %

value share, BEV, 2023

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BEV is the largest segment running solely on electric power and gaining popularity due to technology advancements and charging infrastructure.

Largest Segment by Battery Chemistry

58.81 %

value share, NMC, 2023

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NMC batteries are the dominant choice, offering a balance of energy density, power, and cost, with ongoing improvements in performance.

Largest Segment by Battery Form

60.66 %

value share, Cylindrical, 2023

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Cylindrical batteries play a significant role in the US EV market, supported by high energy density and endorsements from major manufacturers like Tesla.

Leading Market Player

52.80 %

market share, LG Energy Solution Ltd., 2022

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LG Energy Solution leads the US EV battery pack market due to technological expertise, a robust supply chain, manufacturing capacity, diverse product portfolio, and a reputation for quality and reliability.

The United States aims for 50% of new cars to be electric by 2030, boosting EV demand

  • The United States has witnessed a consistent rise in the adoption of electric vehicle (EV) battery packs in recent years, propelled by the surge in EV production and sales. Notably, major automakers like Tesla, General Motors, Ford, and Nissan are heavily investing in R&D to enhance the performance and efficiency of their EVs. Concurrently, battery technology in the United States has made significant strides, with advancements translating into improved range and faster charging. Battery manufacturers, including Panasonic, LG Chem, and CATL, are scaling up their production capacities in the country to meet this surging demand.
  • Recognizing the pivotal role of infrastructure, the US government has been proactive in incentivizing and funding the development of EV battery infrastructure and charging stations, further bolstering the adoption. The government is offering a range of incentives to boost the market for EV battery packs. For instance, federal tax incentives of up to USD 7,500 are extended to EV buyers, while several states sweeten the deal with rebates, tax breaks, and even complimentary charging stations. Although the majority of battery packs in the US are currently imported, primarily from China and South Korea, there is a noticeable shift toward domestic manufacturing. Tesla's sprawling battery plant in Nevada and LG Chem's facility in Michigan exemplify this trend.
  • Looking ahead, the Biden administration has set an ambitious target of 50% of new cars sold in the US being electric by 2030, further underlining the anticipated surge in EV demand. The future of EVs in the country appears bright, with the market projected to witness robust growth from 2024 to 2029.
US EV Battery Pack Market

US 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.

  • The United States has witnessed a consistent rise in the adoption of electric vehicle (EV) battery packs in recent years, propelled by the surge in EV production and sales. Notably, major automakers like Tesla, General Motors, Ford, and Nissan are heavily investing in R&D to enhance the performance and efficiency of their EVs. Concurrently, battery technology in the United States has made significant strides, with advancements translating into improved range and faster charging. Battery manufacturers, including Panasonic, LG Chem, and CATL, are scaling up their production capacities in the country to meet this surging demand.
  • Recognizing the pivotal role of infrastructure, the US government has been proactive in incentivizing and funding the development of EV battery infrastructure and charging stations, further bolstering the adoption. The government is offering a range of incentives to boost the market for EV battery packs. For instance, federal tax incentives of up to USD 7,500 are extended to EV buyers, while several states sweeten the deal with rebates, tax breaks, and even complimentary charging stations. Although the majority of battery packs in the US are currently imported, primarily from China and South Korea, there is a noticeable shift toward domestic manufacturing. Tesla's sprawling battery plant in Nevada and LG Chem's facility in Michigan exemplify this trend.
  • Looking ahead, the Biden administration has set an ambitious target of 50% of new cars sold in the US being electric by 2030, further underlining the anticipated surge in EV demand. The future of EVs in the country appears bright, with the market projected to witness robust growth from 2024 to 2029.
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
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US EV Battery Pack Market Size Summary

The US EV Battery Pack Market is experiencing significant growth, driven by the increasing adoption of electric vehicles across the country. This surge is largely attributed to the efforts of major automakers such as Tesla, General Motors, Ford, and Nissan, who are heavily investing in research and development to enhance EV performance and efficiency. Concurrently, advancements in battery technology have led to improved range and faster charging capabilities, prompting battery manufacturers like Panasonic, LG Chem, and CATL to expand their production capacities within the United States. The government's proactive role in incentivizing the development of EV infrastructure and offering financial incentives to consumers further supports the market's expansion. Despite the current reliance on imported battery packs, there is a noticeable shift towards domestic manufacturing, with significant investments in facilities by companies like Tesla and LG Chem.

The market landscape is highly consolidated, with a few key players dominating the scene. Tesla leads the market with a substantial share, followed by Toyota Group, Ford Group, Hyundai, and Honda. These companies benefit from strong brand recognition, extensive supply networks, and a diverse range of electric vehicle offerings. The growing demand for electric SUVs and sedans reflects changing consumer preferences, with models like the Tesla Model Y and Model 3, as well as Toyota's RAV4 and Sienna, gaining popularity. The market's future looks promising, with ambitious targets set by the Biden administration to increase the share of electric vehicles sold in the US, indicating robust growth prospects for the EV battery pack market in the coming years.

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US 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

US EV Battery Pack Market Size FAQs

The US EV Battery Pack Market size is expected to reach USD 12.20 billion in 2024 and grow at a CAGR of 19.67% to reach USD 29.95 billion by 2029.

In 2024, the US EV Battery Pack Market size is expected to reach USD 12.20 billion.

US EV Battery Pack Market Report Snapshots

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