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U.S. Electric Vehicle Battery Market

U.S. Electric Vehicle (EV) Battery Market Analysis By Battery Type (Lithium-Ion Batteries, Lead Acid Batteries & Nickel Hydride Batteries) By Battery Capacity, By Pack Type, By Vehicle Type, By Vehicle Category, By Sales Channel & By Country – U.S. Market Insights 2022 to 2032

Analysis of U.S. Electric Vehicle Battery market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

U.S. Electric Vehicle Battery Market Outlook (2022-2032)

The United States electric vehicle battery market is forecasted to exceed a valuation of US$ 9.2 billion by 2032-end, up from US$ 5.4 billion in 2022, expanding at 5.4% CAGR during the assessment years (2022-2032).

The market for electric vehicle batteries in the U.S. is predicted to generate an absolute dollar opportunity of US$ 3.8 billion by 2032.

Report Attributes

Details

U.S. Electric Vehicle Battery Market Size (2021A)

US$ 5.2 Billion

Estimated Market Value (2022E)

US$ 5.4 Billion

Forecasted Market Value (2032F)

US$ 9.2 Billion

U.S. Market Growth Rate (2022-2032)

5.4% CAGR

West U.S. Market Share (2021)

~41.2%

West U.S. Growth Rate (2022-2032)

~6.2% CAGR

Market Share of Top 5 Companies

~44%

Key Companies Profiled

  • Tesla Motors, Inc.
  • General Motors
  • Panasonic Corporation of North America
  • Toshiba America Electronic Components Inc.
  • Clarios LLC
  • Crown Battery Corporation
  • East Penn Manufacturing Co.
  • EnerSys
  • Romeo Power, Inc.
  • Wanxiang Group Corporation (A123 Systems)

Rising sales of electric vehicles are fuelling the demand for electric vehicle batteries across the United States. Increasing demand for high-energy-density batteries, cleaner and renewable power generation methods, and product innovation incorporated by manufacturers will propel market growth over the coming years.

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U.S. Consumption Analysis of Electric Vehicle Batteries (2017-2021) Vs. Market Outlook (2022-2032)

Sales of electric vehicle batteries are being influenced by the rise in demand for zero-emission vehicles, depletion of fossil fuel reserves, rising fuel prices, and stringent pollution norms.

The development of new batteries for electric cars is poised to boost electric vehicle battery market growth over the coming years. The market has witnessed a high preference for lithium-nickel-manganese-cobalt aluminium oxide (NMCA) alloys owing to their longer lifecycle and better energy density, which is expected to open new revenue opportunities for manufacturers engaged in producing electric vehicle batteries.

  • Short Term (2022 Q2 to 2025): Rising demand for electric vehicles to fuel electric vehicle battery demand in the short term.
  • Medium Term (2025-2028): Product innovation such as introducing high-energy-density batteries, sand batteries, cobalt-free batteries, and Wi-Fi-powered batteries to fuel medium-term demand growth.
  • Long Term (2028-2032): Incorporation of new technologies by manufacturers to support long-term demand for electric vehicle batteries.

The U.S. electric vehicle battery market registered 3.7% historic CAGR from 2017 to 2021. According to the analysis by Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit 5.4% CAGR during the 2022-2032 forecast years.

U.S. electric vehicle battery market forecast by Fact.MR

Analysis of market share of battery type and region is provided in the above picture. Under the battery type segment, lithium-ion batteries accounted for 60.7% market share in 2021.

U.S. Electric Vehicle Battery Market

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Which Trends are Shaping U.S. Electric Vehicle Battery Market Progress?

“Rapidly Rising Demand for High-Energy-Density Batteries”

Slight increase has been witnessed in the demand for hybrid electric vehicles, plug-in hybrid electric vehicles, and battery-powered electric vehicles in the automotive industry. End-user demand has obligated manufacturers of vehicle batteries to focus on raising energy density to provide a high travelling range.

Also, battery manufacturers are expanding their production capacities to maintain economies of scale and reduce operational costs, which, in turn, is expected to reduce battery prices.

Furthermore, with the advancement in technology, per-mile running costs of vehicles have reduced, and thus, consumers have changed their preference for a battery-driven vehicle from IC engine-driven vehicles. Manufacturers too are focused on reducing the costs of their products and increasing battery lifespan.

“Reliance on Cleaner, Renewable Power Generation Methods”

Generation of electric power via cleaner methods is the talk of the town. To limit the usage of fossil fuels, companies are more focused on renewable sources of energy with great potential for the electrification of transportation systems, majorly electric vehicles. Thus, this ease of power availability is aiding demand growth of electric vehicles, thereby driving the sales of electric vehicle batteries.

The automotive industry is under the scanner of regulating authorities, which has compelled manufacturers to develop products that are compatible with the present regulatory environment. Some such regulations demand a reduction in harmful greenhouse gas emissions during the production and recycling of batteries, which has led to an increase in the demand for lithium-ion batteries that emits lesser emission.

Market regulations also compel battery manufacturers to continuously focus on product innovation to supply advanced products in the market.

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Competitive landscape highlights only certain players
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What Do Electric Vehicle Battery Suppliers in the U.S. Need to Keep in Mind?

“Manufacturers to Content With Stringent Lead Pollution Norms”

The U.S. has placed restrictions to curb lead pollution, which has made domestic production and recycling complicated and costly. In the United States, recyclers operate in highly mechanized, tightly sealed plants, with smokestack scrubbers and extensive monitors to detect lead release. This is restraining the growth of the batteries market in the United States.

Region-wise Insights

Which U.S. Region Account for Higher Consumption of Electric Vehicle Batteries?

The West U.S. electric vehicle battery market and North-East U.S. electric vehicle battery market hold 41.2% and 20.3% market shares, respectively, and are predicted to rise at 6.2% and 5.5% CAGRs across the forecast years.

There are a few factors supporting the high demand for electric vehicle batteries in these regions; for example, the integration of renewables with energy storage systems to provide an opportunity for lithium-ion manufacturers in the market.

OEMs based in the United States are concentrating their efforts to eliminate supply chain risks and sourcing batteries from a single region or country. Also, the Government of the United States is ensuring a reliable and secure supply of critical minerals, including nickel and cobalt, which is expected to result in good growth in the market over the coming years.

Furthermore, electric vehicle battery manufacturers are expanding their production networks of battery cells to allow for noteworthy growth in the market. Thus, all these factors are expected to support regional-level market growth over the years ahead.

Category-wise Insights

Why are Lithium-ion Electric Vehicle Batteries So Popular?

Under the battery type segment, the market is segmented into lithium-ion batteries, lead-acid batteries, and nickel hydride batteries.

The lithium-ion batteries segment holds 60.7% share in the market and is predicted to surge at 8.1% CAGR over the decade. Lithium-ion batteries provide high energy per unit mass as compared to other electrical energy systems. They also offer high energy efficiency, good high-temperature performance, and low self-discharge.

In addition to the above factors, most lithium-ion battery components can be recycled; however, material recovery cost remains a challenge for the industry. The United States Department of Energy is supporting lithium-ion battery recycling to advance and establish profitable solutions along with recovering discarded lithium-ion batteries.

Lead-acid batteries and nickel hydride batteries hold 3.2% and 36.1% market shares, respectively, and are set to see growth at 0.6% and 6.3% CAGRs throughout the assessment period.

Will Hybrid Electric Vehicles Continue Their Dominance in the U.S.?

The electric vehicle battery market in the U.S., under vehicle type, segmented into plug-in hybrid electric vehicles, hybrid electric vehicles, and battery electric vehicles.

Hybrid electric vehicles hold 42.6% market share and demand from this segment is predicted to rise at 5.1% CAGR over the decade. Hybrid electric vehicles are powered by an internal combustion engine and electric motors. They offer high fuel economy and use regenerative braking and an internal combustion engine for charging. These factors are supporting segment demand and growth of hybrid electric vehicles.

Plug-in hybrid vehicles hold 35.6% share in the market as compared to 21.8% share held by battery electric vehicles. These segments are slated to expand at 7.9% and 10.1% CAGRs, respectively, through 2032.

Competitive Landscape

Prominent manufacturers of electric vehicle batteries in the U.S. are investing in developing new technologies to make batteries easier to operate on a zero-emission vehicle.

Market players are undertaking efforts to introduce a new world of battery technology by working on launching cobalt-free batteries to leverage technology and differentiating themselves from other competitors in the market.

For instance :

  • Panasonic Corporation of North America announced a massive battery plant in the United States in 2022. The new mega-factory will make new types of EV batteries for Tesla, Inc.
  • Tesla Inc. is planning to provide next-generation EV batteries and is focusing on turning to lithium iron and not lithium-ion to be the fundamental chemical engineering to power electric vehicles.

Fact.MR has provided detailed information about the price points of key electric vehicle battery manufacturers positioned across the U.S., sales growth, production capacity, and speculative technological expansion, in the recently published report.

Categorization of U.S. Electric Vehicle Battery Industry Survey

  • U.S. Electric Vehicle Battery Market by Battery Type :

    • Lithium-Ion Batteries
    • Lead Acid Batteries
    • Nickel Hydride Batteries
    • Others
  • U.S. Electric Vehicle Battery Market by Battery Capacity :

    • Less than 25 kWh
    • 25-50 kWh
    • 50-100 kWh
    • More than 100 kWh
  • U.S. Electric Vehicle Battery Market by Pack Type :

    • Prismatic
    • Cylindrical
    • Pouch
  • U.S. Electric Vehicle Battery Market by Vehicle Type :

    • Hybrid Electric Vehicles (HEVs)
    • Plug-in Hybrid Electric Vehicles (PHEVs)
    • Battery Electric Vehicles (BEVs)
  • U.S. Electric Vehicle Battery Market by Vehicle Category :

    • Two Wheelers
    • Passenger Vehicles
    • Commercial Vehicles
      • LCVs
      • HCVs
      • Buses
  • U.S. Electric Vehicle Battery Market by Sales Channel :

    • OEMs
    • Aftermarket
  • U.S. Electric Vehicle Battery Market by Region :

    • West U.S.
    • South-West U.S.
    • Mid-West U.S.
    • North-East U.S.
    • South-East U.S.

- Premium Report Details -

U.S. Electric Vehicle Battery Market
  • FACT7482MR
  • Jun-2022
  • Automotive
  • 170 Pages
  • 148 Tables
  • 116 Figures

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The U.S. electric vehicle battery market is valued at US$ 5.4 billion and is expected to surpass US$ 9.2 billion by 2032.

Over the 2017-2021 period, electric vehicle battery sales in the U.S. increased at 3.7% CAGR.

Key electric vehicle battery suppliers in the U.S. are Tesla Motors, Inc., General Motors, Panasonic Corporation of North America, and Toshiba America Electronic Components Inc.

West U.S. leads the market accounting for 41.2% share in 2022.

Hybrid electric vehicles account for a high market share of 42.6%.

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