Electric Vehicle Battery Industry Analysis in United States

Electric Vehicle Battery Sales Outlook for United States (2024 to 2034)

Steadily increasing sales of electric vehicles are leading to the rising use of vehicle batteries for their effective operations in the United States. Revenue from electric vehicle battery sales in the country is estimated to reach a value of US$ 6.13 billion in 2024 and increase at a CAGR of 5.4% to climb to US$ 10.37 billion by the end of 2034.

Growing requirements for renewable and cleaner power generation methods, growing demand for high-energy-density batteries, and product innovation are anticipated to contribute to the sales of electric vehicle batteries. Further, increasing preference for zero-emission vehicles, growing fuel prices, stringent pollution norms, and depletion of fossil fuel reserves are positively influencing sales of electric vehicle batteries.

Increasing production of electric vehicles is leading to the rising development of new batteries. A growing preference for lithium NMCA (nickel-manganese-cobalt aluminum) oxide alloys because of their better energy density and longer lifestyle are projected to generate lucrative opportunities for market players in manufacturing electric vehicle batteries. Product innovation, including sand batteries, Wi-Fi-powered batteries, high-energy-density batteries, cobalt-free batteries, etc., are anticipated to support requirements for electric vehicle batteries.

Report Attribute	Detail
Electric Vehicle Battery Sales in United States (2024E)	US$ 6.13 Billion
Projected Sales (2034F)	US$ 10.37 Billion
Demand Growth (2024 to 2034)	5.4% CAGR
Sales in Northeast Region (2024E)	US$ 1.27 Billion
Sales in West Region (2034F)	US$ 3.54 Billion
Market Share of Cylindrical Batteries (2034F)	46.1%
Market Share of Battery Electric Vehicles (BEVs) (2034F)	63%
Key Companies Profiled	Crown Battery Corporation Tesla Motors, Inc. Wanxiang Group Corporation (A123 Systems) General Motors Romeo Power, Inc. Panasonic Corporation of North America EnerSys Toshiba America Electronic Components Inc. East Penn Manufacturing Co. Clarios LLC

Why are Electric Vehicle Battery Suppliers Thriving in the United States?

“Increasing Requirements for High-energy-density Batteries”

Growing demand for battery-powered electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles in the automotive sector is forecasted to widen opportunities for respective manufacturers. In addition, they are also expanding their manufacturing capacities for reducing operational costs and expand footprints across regions.

Moreover, technological advancements are contributing to reduced per-mile running vehicle costs, and therefore, more consumers are giving preference to electric vehicles with IC engines. The constant involvement of more manufacturers in increasing battery lifespan and reducing product costs is anticipated to help them get a competitive edge.

“Dependency on Renewable and Cleaner Power Generation Methods”

The generation of electric power through cleaner methods is gaining popularity. More companies are concentrating on limiting the use of fossil fuels and focusing on renewable energy sources with great potential in transportation systems, especially electric vehicles. Therefore, this convenience in power availability is projected to aid in rising demand for electric vehicles, subsequently positively impacting sales of electric vehicle batteries.

What Challenges Can Limit Demand Growth for Electric Vehicle Batteries?

“Need to Adhere to Stringent Pollution Norms”

The government in the United States placed certain restrictions on controlling pollution, which made recycling costly and complicated. Recyclers operating in the market work in tightly sealed and highly mechanized plants, with extensive monitors and smokestack scrubbers to detect lead release. Adherence to these norms is a bit difficult and expensive, therefore restraining market growth.

Country-wise Insights

Will the Western Region Retain its Dominance in the United States?

“Integrating Renewable Energy Sources with Storage Systems”

Attribute	West Region
Market Value (2024E)	US$ 1.87 Billion
Growth Rate (2024 to 2034)	6.5% CAGR
Projected Value (2034F)	US$ 3.54 Billion

West region is evaluated to capture 34.1% of the market share in the United States by 2034. There are various factors, which are supporting increased demand for electric vehicle batteries. The integration of multiple renewable sources with energy storage systems is anticipated to offer opportunities to manufacturers of lithium-ion batteries.

OEMs (original equipment manufacturers) in the Western region are focusing their efforts on eliminating risks associated with the supply chain. They are avoiding sourcing batteries from one particular country or region and establishing business connections with various countries. They are ensuring a secure and reliable supply of critical minerals, such as cobalt, nickel, etc., used in these batteries.

What is the Demand Outlook for Electric Vehicle Batteries in Southwest U.S.?

“Growing Production of Battery Cells”

Attribute	Southwest Region
Market Value (2024E)	US$ 962.4 Million
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 1.75 Billion

Southwest region is expected to enjoy 16.9% share of the United States market by 2034-end. Various manufacturers of electric vehicle batteries are expanding their production networks for increasing battery cell manufacturing, which is contributing to increased sales, and subsequently supporting growth opportunities.

Category-wise Insights

What Makes Cylindrical Batteries More Popular in the United States?

“Comparatively Easy Manufacturing of Cylindrical Cells Using Automated Equipment”

Attribute	Cylindrical Batteries
Segment Value (2024E)	US$ 2.75 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 4.78 Billion

Cylindrical batteries are projected to hold 46.1% of the United States market revenue share by 2034. An increase in the sales of plug-in hybrid electric vehicles because of growing concerns to keep an eye on carbon footprint is forecasted to have a positive impact on the demand for cylindrical batteries. Moreover, the production of cylindrical cells is comparatively easy with the use of automated equipment. In addition, high current discharge features and high capacity across a wide variety of temperatures are expected to result in the rising popularity of cylindrical batteries.

Why are Battery Electric Vehicles (BEVs) Preferred More in the United States?

“Zero Emission and High Energy Efficiency of Battery Electric Vehicles”

Attribute	Battery Electric Vehicles (BEVs)
Segment Value (2024E)	US$ 3.76 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 6.53 Billion

As per the recently updated analysis by Fact.MR, a market research and competitive intelligence provider, battery electric vehicles are approximated to account for 63% share of the market in the United States. The rising popularity of battery electric vehicles (BEVs) is attributed to their high energy efficiency and zero emission as they run without any internal combustion engine. Further, electric motors produce fewer exhaust gases and a lower noise level. Battery electric vehicles are expected to assist individuals lead a better quality of life causing minimal emissions.

Competition Landscape

Crown Battery Corporation, Tesla Motors, Inc., Wanxiang Group Corporation (A123 Systems), General Motors, Romeo Power, Inc., Panasonic Corporation of North America, EnerSys, Toshiba America Electronic Components Inc., East Penn Manufacturing Co., and Clarios LLC are some of the leading manufacturers of electric vehicle batteries in the United States. They are constantly focusing on new product development, offering products of improved quality, and effectively managing supply chain systems.

Segmentation of Electric Vehicle Battery Study in the United States

• By Battery Type :

  • Lithium-ion Batteries
  • Lead Acid Batteries
  • Nickel Hydride Batteries
  • Others

• By Battery Capacity :

  • Less than 25 kWh
  • 25 to 50 kWh
  • 51 to 100 kWh
  • More than 100 kWh

• By Pack Type :

  • Prismatic
  • Cylindrical
  • Pouches

• By Vehicle Type :

  • Hybrid Electric Vehicles (HEVs)
  • Plug-in Hybrid Electric Vehicles (PHEVs)
  • Battery Electric Vehicles (BEVs)

• By Vehicle Category :

  • Two Wheelers
  • Passenger Vehicles
  • Commercial Vehicles
    • LCVs
    • HCVs
    • Buses

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • Northeast Region
  • Southeast Region
  • Southwest Region
  • West Region
  • Midwest Region