North America Lithium-ion Battery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.10 Billion |
| Market Size (2029) | USD 68.95 Billion |
| CAGR (2024 - 2029) | 33.77 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Lithium-ion Battery Market Analysis
The North America Lithium-ion Battery Market size is estimated at USD 16.10 billion in 2024, and is expected to reach USD 68.95 billion by 2029, growing at a CAGR of 33.77% during the forecast period (2024-2029).
- Over the medium term, the market is expected to be driven by the increasing adoption of electric and hybrid vehicles and the increasing demand for energy storage systems.
- On the other hand, the demand-supply mismatch of raw materials is expected to hinder the market growth during the study period.
- Nevertheless, the improvements in efficiency and maintenance requirements are expected to provide significant opportunities for lithium-ion batteries during the forecast period.
- The United States is expected to dominate the market due to the government's increasing investments in electric vehicle segments in the forecast period. It will result in increased demand for battery-based energy storage systems, primarily led by lithium-ion batteries.
North America Lithium-ion Battery Market Trends
Automotive Batteries Expected to be the Fastest-growing Segment
- Lithium-ion battery systems drive the performance of plug-in hybrid and electric vehicles by meeting OEM requirements for driving range and charging time. Their high energy density, fast recharge capability, and high discharge power make lithium-ion batteries the preferred technology. They outperform lead-based traction batteries in terms of specific energy and weight. As a result, lithium-ion batteries are the most competitive option for total hybrid electric vehicles and electric vehicles.
- Lithium-ion batteries offer a longer lifespan for electric vehicles, which rely on these batteries for power, reducing the frequency of battery replacements. Lithium-ion batteries are considered environmentally friendly compared to other batteries as they do not contain toxic materials like lead or cadmium. It makes them a cleaner and safer choice. Additionally, lithium-ion batteries provide a high power output, which is crucial for electric vehicles that require rapid acceleration and high speeds.
- Moreover, within the electric vehicle battery manufacturing industry, there is a growing popularity of lithium-ion battery prismatic cells. These cells are significantly larger, ranging from 20 to 100 times the size of cylindrical cells. This larger size allows prismatic cells to deliver more power and store greater energy within the same volume. Cylindrical cells, on the other hand, use less material for their casing, which can limit their power and energy storage capabilities.
- Additionally, with the growing sales of electric vehicles, the demand for lithium-ion batteries for the automotive segment is expected to increase significantly during the forecasted period. For instance, according to the International Energy Agency, the sales of electric vehicles in the United States and Canada grew by more than 54% between 2021 and 2022.
- Moreover, in 2022, General Motors & Ford, and American companies announced their targeted strategy to manufacture and sell EVs. General Motors declared its target to manufacture 30 EV models and set up a Battery Electric Vehicle (BEV) production capacity of 1 million units in North America by 2025, plus carbon neutrality in 2040. In comparison, Ford declared its target of One-third of sales to be fully electric by 2026 and 50% by 2030, with all-electric sales in Europe by 2030. It will drive the need for lithium-ion batteries in North America.
- In February 2023, NanoGraf's latest advancement in deploying silicon anodes is positioned to enhance the energy and power densities of forthcoming lithium-ion batteries. This breakthrough technology effectively addresses the challenges associated with silicon anodes.
- Therefore, the increasing shift towards electric vehicles is expected to drive the North America Lithium-ion Battery Market during the forecast period.
The United States Expected to Dominate the Market
- The United States is one of the pioneers in research and innovation in the global battery market. The region also remains one of the largest consumers of batteries, i.e., both primary and secondary battery types. It is owing to increased electric vehicle deployment, spending on consumer electronics, and consumer and manufacturing activities.
- The United States includes a well-established manufacturing infrastructure for lithium-ion batteries, a significant number of battery manufacturers, and research and development facilities focused on battery technologies. This infrastructure gives the United States a competitive edge regarding production capacity and technological advancements.
- For instance, in October 2022, Honda announced its plans to manufacture lithium-ion batteries in the United States, making it the latest car company to do so. In a joint venture with LG Energy Solutions, Honda aims to supply the North American market with "pouch type" batteries designed to power electric vehicles under its Honda and Acura brands. While the exact location of the USD 4.4 billion factory is not disclosed, the joint venture is expected to commence by the end of this year, pending regulatory approval. Construction is planned to begin in early 2023 to achieve mass production of advanced lithium-ion battery cells by the end of 2025.
- Moreover, the United States holds a large market for electric vehicles driven by government incentives, environmental regulations, and consumer demand for cleaner transportation options. The increasing adoption of EVs fuels the demand for lithium-ion batteries, giving the United States an advantage in the market.
- The new policies mandate that projects receiving federal support, including the USD 200 million in the agency's 2022 budget to support battery technology, must manufacture their products within the United States. It also applies to the USD 17 billion issued by the lending authority under DOE's Advanced Technology Vehicles Manufacturing Loan Program.
- According to the International Energy Agency, the country's electric vehicle sales were around 990000 compared to 630000, registering a growth rate of more than 57% between 2022 and 2021.
- Moreover, as of 2022, the cumulative large-scale battery storage capacity was around 22,385.1 megawatt-hours (MWh), which was approximately 80% more than in 2021, as per the United States Energy Information Administration. In the United States, the California Independent System Operator (CAISO) and Electric Reliability Council of Texas (ERCOT) include most of the large-scale battery storage capacity additions. In 2022, CAISO had 7561.3 MWh or 34 % share, and ERCOT had 1684.4 MWh capacity or 7.5% share in the country’s overall installed capacity.
- Further, the country's EV manufacturers are undertaking further initiatives to cater to the rising demand. Thirteen new battery cell giga-factories are expected to come online in the United States by 2025. These giga-factories are being developed by various automobile manufacturers, like Ford Motor Company and General Motors Company, to support their electric vehicle manufacturing and sales.
- Therefore, the country is likely the dominant player in the North American lithium-ion battery market, supported by increasing urbanization and consumer spending. These are expected to ramp up the demand for technically advanced devices and vehicles due to the benefits provided by the same. Consecutively, this is expected to boost the usage of batteries.
North America Lithium-ion Battery Industry Overview
The North American lithium-ion battery market is semi-fragmented. Some of the key players in the market (in no particular order) include Tesla Inc., LG Chem Ltd, Panasonic Corporation, Duracell Inc., and Samsung SDI Co. Ltd, among others.
North America Lithium-ion Battery Market Leaders
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Panasonic Corporation
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Duracell Inc.
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Samsung SDI Co. Ltd
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LG Chem Ltd
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Tesla Inc.
*Disclaimer: Major Players sorted in no particular order
North America Lithium-ion Battery Market News
- November 2023: The Office of the Assistant Secretary for Industrial Base Policy agreed with Albemarle Corporation to increase domestic mining and production of lithium to increase the manufacturing of lithium-ion batteries. The agreement, worth USD 90 million, will help support Albemarle's planned re-opening of their Kings Mountain, N.C. lithium mine. The development will increase domestic production of lithium for the nation's battery supply chain.
- November 2023: BASF, a global battery materials producer, agreed with SK On Co., Ltd., a global electric vehicle battery cell manufacturer, to explore collaboration opportunities in the global lithium-ion battery market, which is focused on North America and Asia-Pacific. As per the agreement, both companies will collaborate on their business and product development capabilities to develop industry-leading battery materials.
North America Lithium-ion Battery 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 Global Lithium-ion Battery Price Trend Analysis, till 2029
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.1.1 Declining Lithium-Ion Battery Prices
- 4.6.1.2 Increasing Adoption Of Electric Vehicles
- 4.6.2 Restraints
- 4.6.2.1 Safety Concerns Related To Lithium-Ion Battery
- 4.7 Supply Chain Analysis
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4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitute Products and Services
- 4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Application
- 5.1.1 Consumer Electronics
- 5.1.2 Automotive
- 5.1.3 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.))
- 5.1.4 Other Applications (Power Tools, Defense, Medical Devices, etc.)
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5.2 Geography Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}
- 5.2.1 United States
- 5.2.2 Canada
- 5.2.3 Rest of North America
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 BYD Company Ltd
- 6.3.2 Contemporary Amperex Technology Co. Limited
- 6.3.3 EnerSys
- 6.3.4 Duracell Inc.
- 6.3.5 Clarios (Formerly Johnson Controls International PLC)
- 6.3.6 LG Chem Ltd.
- 6.3.7 Panasonic Corporation
- 6.3.8 VARTA AG
- 6.3.9 Samsung SDI Co. Ltd.
- 6.3.10 Sony Corporation
- 6.3.11 Tesla Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Improvement In Efficiency And Maintenance Requirements
North America Lithium-ion Battery Industry Segmentation
A lithium-ion (Li-ion) battery is an advanced technology that uses lithium ions as a critical component of its electrochemistry. Li-ion batteries can use a number of different materials as electrodes. Lithium cobalt oxide (cathode) and graphite (anode) are the most common combinations.
The North American lithium-ion battery market is segmented by application and geography. It is segmented by application into consumer electronics, automotive, energy storage (UPS, renewables, and industrial), and other applications (power tools, defense, medical devices, etc.). The report also covers the market size and forecasts across major countries. It offers the market size and forecasts for the North American lithium-ion battery market in revenue (USD) for all the above segments.
| Application | Consumer Electronics |
| Automotive | |
| Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)) | |
| Other Applications (Power Tools, Defense, Medical Devices, etc.) | |
| Geography Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)} | United States |
| Canada | |
| Rest of North America |
North America Lithium-ion Battery Market Research FAQs
How big is the North America Lithium-ion Battery Market?
The North America Lithium-ion Battery Market size is expected to reach USD 16.10 billion in 2024 and grow at a CAGR of 33.77% to reach USD 68.95 billion by 2029.
What is the current North America Lithium-ion Battery Market size?
In 2024, the North America Lithium-ion Battery Market size is expected to reach USD 16.10 billion.
Who are the key players in North America Lithium-ion Battery Market?
Panasonic Corporation, Duracell Inc., Samsung SDI Co. Ltd, LG Chem Ltd and Tesla Inc. are the major companies operating in the North America Lithium-ion Battery Market.
What years does this North America Lithium-ion Battery Market cover, and what was the market size in 2023?
In 2023, the North America Lithium-ion Battery Market size was estimated at USD 10.66 billion. The report covers the North America Lithium-ion Battery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Lithium-ion Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key segments of the North America Lithium-ion Battery Market?
The key segments of the North America Lithium-ion Battery Market are a) Type: Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Nickel Manganese Cobalt and Lithium Manganese Oxide b) Power Capacity: 0 to 3000mAh, 3000mAh to 10000mAh, 10000mAh to 60000mAh, more than 60000mAh C) Application: Consumer Electronics, Electric Vehicles and Energy Storage
North America Lithium Battery Manufacturers Industry Report
The North America lithium-ion battery market is experiencing significant growth, driven by the increasing demand for electric vehicles (EVs) and the adoption of renewable energy storage solutions. The market is segmented by chemistry, components, and applications, with notable segments including automotive, consumer electronics, and energy storage. The automotive segment, in particular, is expected to see substantial growth due to the rising demand for EVs and advancements in automotive technologies.
Additionally, ongoing technological advancements are enhancing battery performance, reducing costs, and expanding applications across various sectors such as consumer electronics, grid storage, and industrial uses. The push towards domestic production and supply chain resilience is also leading to increased investments in lithium-ion battery manufacturing facilities across North America. American lithium-ion battery manufacturers are playing a crucial role in this growth, with the top 10 lithium-ion battery manufacturers in the USA leading the charge. These lithium-ion battery companies are at the forefront of innovation, ensuring the creation of high-quality, cutting-edge products that meet industry standards.
Statistics for the North America lithium-ion battery market share, size, and revenue growth rate, created by Mordor Intelligence™ Industry Reports, provide a comprehensive market forecast outlook and historical overview. The market size is expanding rapidly, driven by the global market trends and price trends. Market analysis and market growth are essential components of understanding the market forecast and market outlook. The market report highlights the growth rate and industry analysis, providing insights into industry growth and industry outlook. Industry reports and industry revenue statistics offer a detailed industry overview.
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