Market Size of us ev battery pack Industry
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 12.2 Billion |
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Market Size (2029) | USD 29.95 Billion |
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Largest Share by Propulsion Type | BEV |
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CAGR (2024 - 2029) | 19.67 % |
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Fastest Growing by Propulsion Type | PHEV |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
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
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
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
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
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
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 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 |
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.
US EV Battery Pack Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)
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1.1 Body Type
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1.1.1 Bus
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1.1.2 LCV
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1.1.3 M&HDT
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1.1.4 Passenger Car
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1.2 Propulsion Type
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1.2.1 BEV
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1.2.2 PHEV
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1.3 Battery Chemistry
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1.3.1 LFP
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1.3.2 NCA
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1.3.3 NCM
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1.3.4 NMC
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1.3.5 Others
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1.4 Capacity
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1.4.1 15 kWh to 40 kWh
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1.4.2 40 kWh to 80 kWh
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1.4.3 Above 80 kWh
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1.4.4 Less than 15 kWh
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1.5 Battery Form
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1.5.1 Cylindrical
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1.5.2 Pouch
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1.5.3 Prismatic
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1.6 Method
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1.6.1 Laser
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1.6.2 Wire
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1.7 Component
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1.7.1 Anode
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1.7.2 Cathode
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1.7.3 Electrolyte
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1.7.4 Separator
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1.8 Material Type
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1.8.1 Cobalt
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1.8.2 Lithium
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1.8.3 Manganese
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1.8.4 Natural Graphite
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1.8.5 Nickel
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1.8.6 Other Materials
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US EV Battery Pack Market Size FAQs
How big is the US EV Battery Pack Market?
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.
What is the current US EV Battery Pack Market size?
In 2024, the US EV Battery Pack Market size is expected to reach USD 12.20 billion.
